July 12, 2018

Lehigh Valley Home Prices Hit Highest Level Since 2007

The Greater Lehigh Valley REALTORS® (GLVR) reported June data showed buyer competition manifesting itself into quick sales above asking price.
Click HERE to view the full Market Update report for June 2018.
In June, prices continued to gain traction with the Median Sales Price increasing 12.6 percent to $225,000. This exceeds the Median Sales Price seen when the housing bubble burst in 2007. Even with a record-high Median Sales Price, sellers are, on average, receiving 98.7 percent of asking price.
 
“Inventory may be persistently lower in year-over-year comparisons, and home prices are still more likely to rise than not, but sales and new listings may finish the summer on the upswing,” said GLVR CEO Justin Porembo. “The housing supply outlook is beginning to show an increase in new construction and a move by builders away from overstocked rental units to new developments for sale. These are encouraging signs.”
 
Closed Sales saw a drop of 25.2 percent to 719. Pending Sales, however, saw a bump of 2.0 percent to 802. Inventory levels shrank 37.3 percent to 1,571 units, leading to a Months Supply of Inventory that dropped 37.8 percent to 2.3 months. Days on Market was down 7.9 percent to 35 days.
 
Sean LaSalle, President of GLVR, noted, “Being quick with an offer is still the rule of the day as the number of days a home stays on the market drops lower. If that wasn't enough for buyers to mull over with each potential offer, being aware of pending mortgage rate increases is once again in fashion.”
 
While the strength of the U.S. economy has helped purchase offers pile up, the Fed recently increased the federal funds rate by 0.25 percent, marking the second rate hike this year and seventh since late 2015.
 
Carbon County saw inventory neither gain nor lose with 329 units available in June 2017 and June 2018. Months Supply of Inventory was down 15.9 percent to 5.8 months. The Median Sales Price decreased 4.7 percent to $131,720. Pending Sales climbed to 65, versus 59 the previous June, and there was an increase in New Listings, which hit 108.