September 17, 2017
Lehigh Valley Home Prices Climb Toward Decade High
The Greater Lehigh Valley REALTORS® (GLVR) reported August data shows a median home price that hasn’t been seen in nearly a decade. This is caused by the continuing trend of low supply and high demand.
Click HERE to view the full Market Update for August 2017.
The median sales price in August was $205,000, a 2.8 percent increase from a year ago and a mere $2,000 short of the $207,000 figure reached in July 2008. The decade high for median sales price is $215,000 in July 2007.
“Competition is expected to remain fierce for available listings,” said GLVR CEO Justin Porembo. “Savvy sellers and buyers know that deals can be made well into the school months. The market is historically seasonal with a hot spring and summer and cool fall and winter. As we enter the last months of 2017, we can expect more of the same trends and no drastic market changes.”
GLVR’s reported August data also saw new listings decrease 8.2 percent to 954. Pending sales were up 6.6 percent to 792. Closed sales ticked up 2.0 percent to 813.
Inventory levels shrank 41.1 percent to 2,238 units, leading to a Months Supply of Inventory that was down 44.8 percent to 3.2 months. Most economists consider a balanced market to be a five- to six-month supply. Days on Market was down 33.9 percent to 37 days.
“The prevailing trends of low supply and high demand lasted through summer,” said GLVR President Cass Chies. “This was expected, since there have not been any major changes in the economy that would affect housing. Factors such as wage growth, unemployment and mortgage rates have all been stable.”
Porembo added, “Every locality has its unique challenges, but the whole of residential real estate is in good shape. Recent manufacturing data is showing demand for housing construction materials and supplies, which may help lift the ongoing low inventory situation in 2018.”
In Carbon County, the median sales price increased 38.5 percent to $117,400, in part because of low inventory levels and because of a noted increase in sales of higher-end homes. Inventory levels shrank 35.1 percent to 309 units. Months Supply of Inventory was down 39.0 percent to 6.1 months.