September 14, 2020
With Low Inventory, Higher Prices, Lehigh Valley Sellers Receiving 99.7% of List Price
The Greater Lehigh Valley REALTORS® (GLVR) reported August data showed that pending sales and showings remained at strong levels while housing inventory remained limited, continuing the competitive bidding market we have seen for many months now.
GLVR Members: Click HERE to view the full Market Update report for August 2020.
“As we look towards the fall, we normally see housing activity begin to slow a bit as the back-to-school season begins, but this year is far from normal,” said GLVR CEO Justin Porembo. “With the stock indexes at or near record highs as mortgage rates remain near record lows, signs point to a busy fall housing market – if our REALTOR® members can find sellers.”
With data now available for the month of August, Northampton and Lehigh counties saw New Listings decrease 7.1 percent to 948, a sign that some sellers remain hesitant to allow individuals into their homes. That said, both Closed Sales were relatively steady, dropping just 1.7 percent to 937. Pending Sales jumped 23.4 percent to 995, showing that many buyers are still working their way through the closing process.
Inventory levels shrank 55.3 percent to 850 units, leading to a Months Supply of Inventory that was down 51.9 percent to 1.3 months. This low inventory means home prices continued to gain traction and Days on Market remained fast. The Median Sales Price increased 9.1 percent to $240,000. Days on Market decreased 15.6 percent, coming in at just 27 days.
“While uncertainty remains on what effects the upcoming elections and any seasonal resurgence of COVID-19 may have on the financial and housing markets, the healthy housing demand we see today will create significant tailwinds in the near term,” said GLVR President Jack Gross. “The local market is experiencing robust activity due to the delayed spring selling season, and there are no indications that contract activity will wane in the immediate future.”
In Carbon County, which is showing a healthy amount of housing-related activity, the Median Sales Price increased to $155,000. Closed Sales were up to 111. Pending Sales increased to 115. For New Listings, there were 98. Inventory dropped to 145 units, leading to a Months Supply of Inventory of 2.1 months.
Monthly Reminder: Real Estate is Safe
Porembo and Gross continue to emphasize that real estate is safe in the age of COVID-19. All area REALTORS® have access to suggested best practices that outline how to keep everyone involved in a real estate transaction safe. Should any consumer – whether they be a home buyer or seller – be interested in learning how they and their REALTOR® can work together to create a safe environment for a real estate transaction, additional information is available at parealtors.org/coronavirus/best-practices