The Greater Lehigh Valley REALTORS® (GLVR) reported October data showed purchase activity down compared to this time last year due to rising interest rates keeping many current homeowners from selling, causing inventory to remain at historically low levels nationwide.
GLVR Members: Click HERE to view the full Market Update report for October 2023.
“The shortage of homes for sale is making it harder for buyers to find a home to purchase while at the same time pushing sales prices higher nationwide,” said GLVR CEO Justin Porembo. “In a notable shift, the National Association of Realtors®’ 2023 Profile of Home Buyers and Sellers – released just this week – revealed a surge in median household income among home buyers, rising from $88,000 to $107,000 in the last year. But this underscores the growing financial threshold required to purchase a home.”
Closed Sales dipped 12.6 percent to 522 listings. Inventory slipped 30.9 percent – there were 643 units in October for Lehigh and Northampton counties. With inventory still not at sufficient, comfortable levels, the Median Sales Price increased 4.9 percent to $310,000.
Other notable housing statistics for October include:
- New Listings dropped 6.0 percent to 663.
- Pending Sales were down 2.7 percent to 536.
- Months Supply of Inventory slid 14.3 percent to 1.2 months.
- Percentage of List Price Received increased 0.4 percent, coming in at 101.3 percent.
- Homes sold, on average, in 18 days, one day faster than the previous October.
In Carbon County, the Median Sales Price decreased to $185,050. Closed Sales moved up two listings, landing at 66. Pending Sales decreased to 68. New Listings bumped up three listings to 78. Inventory dropped to 135 units, leading to a Months Supply of Inventory that increased to 2.4 months. Days on Market increased to 35 days vs. 34 days the previous October.
“While things are not the easiest for homebuyers – or sellers – there is light at the end of the tunnel,” said GLVR President Howard Schaeffer. “We have been seeing first-time buyers tiptoeing back into the market this year with a little less competition and fewer multiple-offer scenarios. While the share of first-time buyers is still near historic lows, it is higher than last year. Notably – and positively – today’s first-time buyers had household incomes nearly $25,000 above last year and are more likely to use financial assets to enter the market.”
Schaeffer added, “Current market conditions have presented challenges for both buyers and sellers. Local REALTORS® are dedicated to keeping a vigilant eye on the ever-changing market dynamics and offering invaluable guidance to those looking to buy or sell their homes. By remaining informed and being willing to flexibly adjust strategies to align with the current landscape, consumers, with the support of a REALTOR®, can confidently and successfully navigate the real estate market.”