The Greater Lehigh Valley REALTORS® (GLVR) reported December data showed that, as we all know, the inventory crunch is driving up prices, causing a record to be broken when, normally, real estate is as chill as the season.
GLVR Members: Click HERE to view the full Market Update report for December 2021.
“The 2021 housing market was one for the history books,” said GLVR CEO Justin Porembo. “Sales prices reached new heights, inventory hit rock bottom, and homes sold in record time, often for well above asking price. That said, mortgage rates, which began the year at historic lows, remain attractive, and homeowners who choose to sell in the coming months can expect to see plenty of buyer activity due to continued pent-up demand during the pandemic.”
Did sales prices really reach new heights right here in the Lehigh Valley? They sure did. December saw a new record-breaking median sales price for Lehigh and Northampton counties: $278,000.
December breaks the record that was set back in June (and again in July), which was $275,000.
With inventory still not at sufficient, comfortable levels – there were just 456 units in December for Lehigh and Northampton counties – the Median Sales Price increased 18.3 percent to $278,000. In addition, homes sold, on average, in 18 days – five days above the record low of 13 days, which was recorded in July.
Other notable housing statistics for December include:
- New Listings decreased 8.7 percent to 439.
- Pending Sales were up 1.7 percent to 524.
- Closed Sales slipped 17.7 percent to 717.
- Months Supply of Inventory was down 45.5 percent to 0.6 months.
- Percentage of List Price Received went above and beyond, increasing 1.3 percent to 101.4 percent.
- Homes sold, on average, in just 18 days, a decrease of 10.0 percent.
In Carbon County, the Median Sales Price increased to $211,000. Closed Sales were up one listing to 84. Pending Sales jumped to 68. New Listings decreased to 46. Inventory dropped to 86 units, leading to a Months Supply of Inventory of 1.2 months. Homes are moving at a decent pace for the association’s more rural county, even with the number increasing a bit. Days on Market was 34 days (versus 31 days the previous December).
“Looking ahead, we anticipate many of the housing market trends of 2021 continuing into 2022, albeit at a more moderate level,” said GLVR President Tim Tepes. “Strong buyer demand and inventory shortages are likely to persist over the next year. Home sales are projected to remain strong but will be tempered by the limited supply of homes, higher sales prices, and rising interest rates, with the Federal Reserve planning multiple rate hikes in the new year. Price growth is expected to slow somewhat as a result, but affordability will likely remain a top constraint for some homebuyers.”