August 14, 2018

Lehigh Valley Home Prices Continue Upward March

The Greater Lehigh Valley REALTORS® (GLVR) reported July data showed a continued upward march of home prices as housing demand continues to outpace what is available.

Click HERE to view the full Market Update report for July 2018.

 In July, the Median Sales Price increased 10.6 percent to $210,000. Even with home prices marching upward, sellers are, on average, receiving 98.6 percent of asking price.
“Housing price chatter has increased this summer, as market observers attempt to predict the next residential real estate shift,” said GLVR CEO Justin Porembo. “It is too early to predict a change from higher prices and lower inventory, but the common markers that caused the last housing cooldown are present.”
According to Porembo, wages are up but not at the same pace as home prices, leading to the kind of affordability concerns that can cause fewer sales at lower prices. At the same time, demand is still outpacing what is available for sale in many markets.
Closed Sales increased 6.6 percent to 839. Pending Sales were up 13.5 percent to 883. Inventory levels shrank 22.5 percent to 1,948 units, leading to a Months Supply of Inventory that dropped 25.0 percent to 2.7 months. Days on Market was down 31.0 percent to 29 days.
“Consumer spending on home goods and renovations are up, and more people are entering the workforce,” said Sean LaSalle, President of GLVR. “Employed people spending money is good for the housing market. Meanwhile, GDP growth was 4.1 percent in the second quarter, the strongest showing since 2014. With a growing economy, solid lending practices and the potential for improved inventory from new listing and building activity, market balance is likely.”
Carbon County saw a solid July. Inventory was up 8.3 percent to 378 units. Months Supply of Inventory decreased 11.1 percent to 6.4 months. The Median Sales Price increased 24.4 percent to $157,000. Pending Sales climbed to 74, versus 56 the previous July, and there was an increase in New Listings, which hit 125.