Lehigh Valley housing market stays strong for summer 2025

A Conversation With: Michael Bernadyn, president of Greater Lehigh Valley Realtors

LVB: Recent reports from the Greater Lehigh Valley Realtors expressed optimism for the real estate market this summer. Are you still looking for a strong summer for home sales?

Bernadyn: We anticipate a strong summer for home sales in the Greater Lehigh Valley.

Nationally sales were slowed due to affordability concerns and some economic uncertainty, the Greater Lehigh Valley continues to demonstrate stability as our April data showed modest gains in closed sales and continued rise in home values.

Those rising home values and motivated buyers reflect a level of confidence in our local market which sets us apart from the broader trends.

LVB: What are some of the ongoing issues that have been impacting the housing market in the Lehigh Valley?

Bernadyn: Even with our continued positive momentum locally, several challenges persist:

The Lehigh Valley continues to experience limited housing inventory, with just a 1.2-month supply in April 2025.

This scarcity is driving up home prices and creating a competitive environment for all buyers. Issues such as affordability and municipal restrictions for developers and builders have shown to limit the number of new construction homes being built in a timely fashion and for what many can argue is “affordable”.

Mortgage rates have stabilized in the mid-to-high 6% range, they remain elevated compared to our historical lows.

This impacts affordability for many prospective buyers and what price points they are able to afford. Another factor that is affecting affordability is the rising costs of homeowners insurance policies, and for some sellers insurance policies being terminated.

Many homeowners are reluctant to sell due to the “golden handcuff” effect, where they are hesitant to give up their current low mortgage rates.

This reluctance further constraints inventory levels.

LVB: Are issues like inflation, concerns over tariffs and any other newer concerns impacting the housing market?

Bernadyn: National economic factors are playing a role locally with ongoing inflationary pressures and higher interest rates have led to increased borrowing costs, affecting buyer purchasing power and overall market activity.

The rising costs and policy requirements of homeowners insurance policies has been a factor we started to see just a couple months ago, and they continue to be a strong factor to both home buyers and sellers.

Recent tariffs have increased construction and supply chain costs, impacting new home construction and potentially leading to even higher prices for new builds.

LVB: What should buyers and sellers be thinking about if they’re looking to get into the market this summer?

Bernadyn: For those looking to engage in the market this summer my best advice is Buyers, be prepared for a competitive environment.

Work closely with a Realtor to understand pricing trends and to navigate quick-moving transactions effectively.

Sellers need to continue to consider the current market dynamics when pricing their home.

With limited inventory and strong demand, it’s an opportune time to list your property.

Realtors bring clarity and strategy to buyers and sellers facing today’s challenges. Even small shifts in the market can have a big impact, and that’s where professional guidance makes all the difference.