Greater Lehigh Valley Realtors released its October data on the local real estate market, which showed low housing supply continuing to hold back sales.
However, experts see some bright spots for next year, with the potential for continued low mortgage rates in 2020, a move that could support buyer demand and boost sales.
While mortgage rates in October increased slightly from the three-year lows in September, mortgage rates are still about 1 percent lower than this time last year. In addition, the Federal National Mortgage Association (Fannie Mae) said it predicts continued low rates and possibly lower rates could come in 2020.
Also from the October report, new listings decreased 8.2 percent to 924 compared to October 2018, which showed 1,006 new listings.
In addition, pending sales increased 8.6 percent to 767 compared to October 2018, which showed 706.
Meanwhile, inventory levels dipped 26.1 percent to 1,695 units, compared to 2,295 in October 2018.
The report showed prices continued to gain traction. The median sales price increased 6.7 percent to $212,000, as compared to $198,750 in October 2018.
In addition, the days on market figure was down 10.5 percent to 34 days, compared to 38 days in October 2018.
Furthermore, the months’ supply of inventory was down 30.3 percent to 2.3 months, compared to 3.3 in October 2018.
This season is typically a slower time of year for home sales, according to the report.
However, historically low mortgage rates will continue to support buyer demand and may create additional lift to home prices as affordability gives buyers the ability to offer more to secure their home, the report said.
Throughout much of the country, the continued low level of housing inventory also continues to constrain sales activity from where it would likely be in a balanced market.