November 13, 2019
Lehigh Valley Housing Market: Low Supply Holding Back Sales
The Greater Lehigh Valley REALTORS® (GLVR) reported October data shows that while economic indicators portend a strong housing market, low supply on the lower end—which leaves first-time home buyers with few options—is helping to hold sales back.
GLVR Members: Click HERE to view the full Market Update report for October 2019.
“An imbalance persists for mid- to lower-priced homes, with solid demand and insufficient supply, which is consequently pushing up home prices,” said GLVR CEO Justin Porembo.
In October, when the Lehigh Valley normally starts to see a seasonal slowdown, prices continued to gain traction. The Median Sales Price increased 6.7 percent to $212,000. Inventory levels, meanwhile, shrank 26.1 percent to 1,695 units, leading to a Months Supply of Inventory that dropped 30.3 percent to 2.3 months. Closed Sales were down 5.5 percent to 703.
“There are positives to this real estate market,” noted GLVR President Carl Billera. “Fannie Mae is predicting that continued low mortgage rates, and possibly lower rates, are expected in 2020. Our hope is that these low rates will continue to support buyer demand and help people get into the home of their dreams.”
In Carbon County, the Median Sales Price increased to $149,000. Closed Sales were down – by just one property – to 63. Pending Sales climbed to 71. There was a decrease in Inventory, which came in at 310 units. Sellers were encouraged as Days on Market decreased to 56 days.