The Greater Lehigh Valley REALTORS® (GLVR) reported August data showed that even though a record wasn’t broken for a third straight month, the housing market, year over year, continues to see homes moving in two weeks’ time and selling for over ask.
GLVR Members: Click HERE to view the full Market Update report for August 2021.
“Will bidding wars continue? Will home prices stay elevated? Will home buyer demand remain strong?” GLVR CEO Justin Porembo wondered. “Heading into the fall season, we are optimistic about the market’s direction considering its unpredictability since the beginning of the pandemic.”
Porembo added, “As we head toward fall, the local housing market isn’t seeing that sharp return to the usual slowing pace of sales – nor are prices sliding to the extent typical of the season as families settle into a new school year.”
With inventory still not at sufficient, comfortable levels – there were just 812 units in August for Lehigh and Northampton counties – the Median Sales Price increased 10.5 percent to $265,000. In addition, homes sold, on average, in 14 days – one day above the record low of 13 days, which was recorded in July.
Other notable housing statistics for August include:
- New Listings decreased 2.9 percent to 930.
- Pending Sales were steady, increasing 0.2 percent to 928.
- Closed Sales slipped 11.4 percent to 851.
- Months Supply of Inventory was down 26.7 percent to 1.1 months.
- Percentage of List Price Received went above and beyond, increasing 2.3 percent to 102.0 percent.
- Homes sold, on average, in just 14 days, a decrease of 48.1 percent.
With labor shortages, rising material costs, and supply-chain setbacks continuing to be a challenge, home builders are struggling to meet buyer demand with new construction, according to GLVR President Tim Tepes, who not only specializes in residential resales, but also new construction and investment properties. This, in turn, Tepes said, is making the rental market just as hot as the resale market.
“The booming housing market has spilled over to the rental market, which has seen demand for apartment and single-family rentals skyrocket this year, as high sales prices and an inadequate supply of available housing have forced many prospective buyers to rent for the foreseeable future,” Tepes said. “Increased demand for housing, along with an improving economy, has competition for rental units soaring both nationally and right here in the Lehigh Valley.”
In Carbon County, the Median Sales Price increased to $222,000. Closed Sales were down to 79. Pending Sales decreased to 85. New Listings dipped to 89. Inventory dropped to 125 units, leading to a Months Supply of Inventory of 1.7 months. Homes are moving much faster for the association’s more rural county, with Days on Market dropping to 19 days vs. 50 days the previous August.