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Tag: Greater Lehigh Valley Realtors

Low inventory hurting sales, raising prices in Lehigh Valley housing market

Tight housing inventory is holding back the normal burst in home sale activity in the Lehigh Valley, and at the same time it’s leading to an increase in prices. 

According to the Greater Lehigh Valley Realtors, closed sales dropped 33.6% to 432 listings while inventory slipped 27.5%, with only 498 units on the market in April in Lehigh and Northampton Counties 

“Housing inventory remains tight here in the Lehigh Valley and nationwide – if you can believe there were only 980,000 units (nationally) available for sale heading into April,” said GLVR CEO Justin Porembo. “The lack of existing inventory continues to impact home sales. Competition for available properties remains strong, especially in certain price categories, with multiple offers again dominating the market.” 

He noted that the median sales price for a home in the Lehigh Valley has gone up 12.5% to $315,000 

The homes that are available are selling according to the GLVR. The months’ supply of housing inventory dropped 20% to 0.8 months, with homes selling in 24 days on average. That’s an increase of 71.4% or 10 days 

In Carbon County, the median sales price increased to $231,000. Closed Sales remained steady at 59. Pending Sales dropped to 53. New Listings slipped to 70. I 

“I recently spent several days in Washington, D.C., attending the 2023 Realtors Legislative Meetings,” said GLVR President Howard Schaeffer. “A key takeaway from economists from the National Association of Realtors and the National Association of Home Builders was that increasing interest rates will not fix the inventory problem.” 

He said new construction may be able to ease the housing price issue. 

“Housing prices are still rising because of limited housing options on the market. Homebuilding is the policy we need to bring that inflation down, not interest rate hikes. Nationally, we need to be building more than 1.1 million homes a year to have a meaningful impact on the lack of inventory. Leadership within our association looks forward to continuing the conversation regarding inventory and affordable housing with local organizations, builders, legislators, and other valuable parties.” 

 

Mild March for Lehigh Valley home sales

Residential real estate sales were off slightly in the Lehigh Valley for March. 

The latest report from the Greater Lehigh Valley Realtors showed that closed sales dipped 15.2% to 502 properties. 

“Real estate is never one-size-fits-all, and that’s especially true in today’s market,” said GLVR CEO Justin Porembo. “Limited housing options likely will hold some would-be buyers back this spring, but declining rates have also brought some borrowers – and sellers willing to now move – back to the market. It’s quite the dance of uncertainty.” 

Lehigh Valley housing inventory also slipped and was down10.5%. 

There were 522 units on the market in March for Lehigh and Northampton counties.  

Months supply of inventory trended upward 12.5% to 0.9 months. With inventory still not at sufficient, comfortable levels, the median sales price increased 8.1% to $303,000.

Also in the Lehigh Valley, new listings slipped 27.5% to 626. Pending sales were down 23.3% to 526.
The percentage of list price received tumbled 2.3%, but was still high, coming in at 100.3 percent.
*Homes sold, on average, in 25 days, an increase of 38.9% 

“After a volatile real estate market in 2022, we are anticipating a tempered spring market here in the Greater Lehigh Valley,” said GLVR President Howard Schaeffer. “The good news is, nationally, there has been an uptick in sales activity, and pending sales have continued to improve. Our region tends to lag behind the national trends. What is happening nationally is good news and a sign of what’s to come to the Lehigh Valley.” 

In Carbon County, the median sales price increased to $252,500. Closed sales were down to 57. Pending sales dropped to 54. New Listings slipped three listings, coming in at 77.  

Inventory saw an increase. With 93 units, the months supply of inventory increased to 1.5 months. Days on Market decreased to 52 days vs. 45 days the previous March. 

Greater Lehigh Valley Realtors see price increases, but more incentives

With higher mortgage rates keeping buyers cautious, the Greater Lehigh Valley Realtors said that sales incentives are starting to return. 

The GLVR said that February data showed, however, that the slight decline in mortgage rates earlier this year convinced some buyers to come off the sidelines. 

Still, with rates ticking up again in recent weeks, buyers are again pulling back, causing sales activity to remain down heading into spring. 

“Mortgage interest rates have dipped slightly from their peak last fall, but affordability constraints continue to limit homebuyer activity overall,” said GLVR CEO Justin Porembo. “With buyer demand also down from peak levels, home price growth has continued to slow, although prices remain up from a year ago. This means sellers have been increasingly offering sales incentives in an attempt to attract buyers, which is actually something our Realtor members are happy to see return to the market – home inspections, and the like.” 

With inventory still not at sufficient, comfortable levels, the Median Sales Price increased 15.1% to $299,275. 

Overall, closed sales dipped 15.9% to 360 listings in February.  

Inventory slipped 2.4%, but that was a difference of just 12 listings, GLVR said. There were 489 units in February for Lehigh and Northampton counties.  

Months’ supply of inventory trended up 14.3% to 0.8 months.  

New Listings slipped 28.9% in February to 458. Pending sales were down 9.9% to 501. The Percentage of list price received tumbled 1.5% to 99.9%. 

Homes sold, on average, in 30 days, an increase of 25% or six days. 

In Carbon County, the median sales price increased to $232,500. Closed sales were down to 36. Pending Sales improved four listings, coming in at 62.  

New listings dipped to 53. Inventory was largely steady, decreasing just one listing. With 82 units, the months’ supply of inventory increased to 1.3 months. Days on Market decreased to 28 days compared to 36 days the previous February. 

“There’s no one-size-fits-all answer to when it’s the best time to buy a home, as everyone’s circumstances are different,” said GLVR President Howard Schaeffer. “But while rates are significantly higher than the previous year, they are still considered historically low.” 

 

Lehigh Valley housing prices, inventory trend upward for January

While closing sales dipped in the housing market in the Lehigh Valley in January, the good news is inventory is up meaning there’s more houses for buyers to choose from. 

The Greater Lehigh Valley Realtors said January data showed the start of the year in a state of rebalance, with many buyers and sellers remaining cautious while they wait to see where the real estate market is headed. 

“Although home prices remain high, mortgage rates declined steadily throughout January, falling to their lowest level since September, sparking a recent surge in mortgage demand,” said GLVR CEO Justin Porembo. “Lower rates should aid in affordability and may soon lead to an uptick in market activity ahead of the spring selling season.” 

Closed Sales dipped 38.1% to 349 listings, however, inventory, which has been at record lows, increased 12.8% 

There were 571 available housing units in January for Lehigh and Northampton counties. That increase in inventory led to months’ supply of inventory trending upward 28.6% to 0.9 months.  

With inventory still not at sufficient, comfortable levels, the median sales price increased 10.9% to $300,000.

Also in January, new listings slipped 9.2% to 492. Pending sales were down 4.2% to 453. 

Percentage of list price received tumbled 2.7% to 99%. 

 Homes sold on average in 27 days, an increase of 22.7% or five days. 

Looking at Carbon County, the median sales price increased to $231,000. Closed sales were down to 37. Pending Sales dropped to 42. New listings dipped to 58 – a change of just four listings. Inventory increased to 101 units, leading to a months’ supply of inventory that increased to 1.6 months. Days on market jumped to 46 days. 

“Demand for housing persists, and many would say higher mortgage interest rates have cut into housing affordability,” said GLVR President Howard Schaeffer. “But with homes spending a little longer on the market, buyers have more time and negotiating power when shopping for a home. Seller concessions are making a comeback, too. At the end of a deal, it all balances out, and my clients are notably seeing in real-time the affordability story isn’t quite as alarming as it seems on the surface.” 

GLVR reports on 2022 Lehigh Valley housing market

The Greater Lehigh Valley Realtors (GLVR) has released its report on the 2022 local housing market.
 
It shows that pending sales decreased 14.1%, finishing 2022 at 7,515. Closed sales were down 12.1 percent to end the year at 7,675.

Comparing 2022 to the prior year, the number of homes available for sale was up 6.4%. There were 602 active listings at the end of 2022. New listings decreased by 10.5% to finish the year at 8,942.

Sellers received, on average, 102% of their original list price. Year-over-year the original list price increased 0.4%.

Previous forbearance efforts by the government and lenders limited distressed sales activity once again.  

In 2022, the percentage of closed sales that were either foreclosure or short sale finished the year at 0.4% of the market – or 31 properties out of the 7,675 closed for the year.  

Foreclosure and short sale activity may increase in 2023, though the strong gains in equity seen by most homeowners in the last few years will help to limit the number of distressed sales.

Home prices were up compared to the previous year. The overall median sales price increased 12.9% to $293,000 for the year. Single Family home prices were up 11.5% compared to last year, and Townhouse-Condo home prices were up 15%.

In Carbon County, closed sales were down 5.2% to 799. There were 951 new listings, and the year closed with 91 active listings.  

The percentage of list price received at sale for 2022 was, on average, 96.7%. The overall median sales price increased 7.7% to $210,000. 

Looking ahead to 2023, The GLVR said much depends on inflation, mortgage interest rates, and the broader state of the economy. 

While economists predict many of 2022’s housing trends will continue into this year, home sales will soften, price growth will moderate, inventory will remain tight. 

Higher interest rates slowing Lehigh Valley home sales

With higher interest rates impacting prospective buyers, housing sales declined in December according to the Greater Lehigh Valley Realtors.  

GLVR released December sales data, which seems to show that sellers, many of whom locked in historically low rates when they purchased their home, now seem to be choosing to wait until market conditions improve before selling the home.

“While our region experiences a cyclical housing market with activity dropping over the winter months, the December market activity was compounded by inflation, soaring interest rates, and elevated sales prices,” said GLVR CEO Justin Porembo. “Economists predict sales will continue to slow and housing prices will soften vs. oversell themselves. However, the inventory shortage will likely keep prices from dropping too much, as buyer demand continues to outpace supply.”

According to GLVR, closed sales dipped 31% to 518 listings. 

Meanwhile, inventory inched up 6.4%. There were 602 units in December for Lehigh and Northampton counties.  

However, with inventory still not at sufficient, comfortable levels, the median sales price saw another increase of 3.6% to $290,000. 

Also in December, new listings slipped 18.6%to 364, pending sales were down 23.6% to 375,  months supply of inventory was up 25% to one month and percentage of list price received tumbled 2.2% to 99.2%. 

Homes sold in 25 days on average, an increase of 31.6%.

In Carbon County, the median sales price dipped to $200,000. Closed sales were down to 65. pending sales dropped to 52. New listings fell to 35. Inventory came in at 91 units, a slide of just three properties, leading to a month’s supply of inventory that increased to 1.4 months. Days on market dropped from 34 days to 28 days. 

“In good news as we head into 2023, we are predicting mortgage rates to settle below 6% and experience less volatility,” said GLVR President Howard Schaeffer. “Although rates remain more than double a year ago, they will likely stabilize as inflation will continue to slow down in the coming months.”

Inflation, higher mortgage rates slowing Lehigh Valley housing market

The residential real estate market continues to slow, and the Greater Lehigh Valley Realtors is saying rising consumer prices and higher mortgage interest rates are contributing to the cooling market. 

“The cost of borrowing has reached multi-year highs on everything from credit cards to auto loans in 2022 as mortgage interest rates topped 6% for the first time since 2008, causing existing home sales in the U.S. to decline for the seventh consecutive month,” said GLVR CEO Justin Porembo. “Inventory remains lower than normal, and as the market continues to shift, experts project homes will begin to spend more days on market and price growth will slow in the months ahead.” 

According to GLVR, closed sales dipped 15.9% to 722 listings in September and pending sales were down 20.5 % to 611. 

Housing inventory is still low. There were 790 units in September for Lehigh and Northampton counties and new listings slipped 21.0% to 696. That led the median sales price to increase 13.4% from the prior month to $298,250. 

In Carbon County, the median sales price increased to $196,000. Closed sales were up to 84. Pending sales dropped to 68. New Listings went up two listings to 89.  

“There’s no denying that the real estate market is in flux,” said GLVR President Howard Schaeffer. “Potential buyers are contending with higher-than-expected housing prices and interest rates, and sellers are struggling to find new properties to move into before closing on their current residences. This has left many wondering whether they should just wait or risk a loss by engaging with a volatile market.” 

Lehigh Valley residential real estate market continues to soften

The Greater Lehigh Valley Realtors said its August data showed a steady housing market in the Lehigh Valley as housing affordability hits 33-year low and existing-home sales continue to soften. 

So, what can a home buyer do to better their financial chances? Shop around, according to experts. 

“As mortgage rates surge and remain volatile, it’s becoming increasingly necessary for home buyers to shop around for a loan to find savings,” said GLVR CEO Justin Porembo. “According to Freddie Mac, borrowers potentially could save an average of $1,500 over the life of a loan by gathering one additional rate quote from a lender. And borrowers could save even more by gathering five different quotes from lenders – up to $3,000, Freddie Mac research shows.” 

This week, the 30-year fixed-rate mortgage pushed to an average of 5.89 percent. That means the typical household must now spend more than 25 percent of their income on mortgage payments, a level most financial experts consider to be cost-burdened. 

“Mortgage rates rose again as markets continue to manage the prospect of more aggressive monetary policy due to elevated inflation,” said Sam Khater, Freddie Mac’s chief economist. “Not only are mortgage rates rising but the dispersion of rates has increased, suggesting that borrowers can meaningfully benefit from shopping around for a better rate.” 

According to the GLVR, closed sales dipped 17% to 738 listing in Augst. With inventory still not at sufficient levels, there were 791 units in August for both Lehigh and Northampton counties and the median sales price increased 19.2% to $315,975.

The report also showed that new listings were down 15.5% to 789l. Pending sales were down 13.4% to 762 and the months supply of inventory was down 15.4% to 789. And new listings slipped 15.5 percent to 789. 

The Percentage of homes selling for list price and above, while still higher than normal, did drop .7% over the prior month to 101.3% of the asking price. 

In Carbon County, the median sales price dipped to $199,000. Closed sales were down to 65. Pending sales bumped up seven listings to 85. New listings slipped 10 listings to 80. Inventory remained steady, decreasing just two listings to come in at 138 units, leading to a months supply of inventory that increased to 5.3 months. Days on Market increased to 26 days. 

“Inflation, higher interest rates, and fears of a potential recession have taken a toll on buyers and sellers this summer, leading many people to stay on the sidelines to see what will happen with the market,” said GLVR President Howard Schaeffer. “But some experts, including NAR Chief Economist Lawrence Yun, believe the worst of inflation may be over. Although sales prices remain up from this time last year, price growth is expected to moderate in the months ahead as the market continues to shift in a more buyer-friendly direction.” 

 

LV home sales slump in July on higher interest rates, record prices

With rising mortgage rates and record-high sales prices the housing market was cooling in the Lehigh Valley during July. 

“As more and more prospective buyers find their home purchase plans delayed, many are turning to the rental market, where competition has intensified due to increased demand,” said Greater Lehigh Valley Realtors CEO Justin Porembo. “A few downsides are rental prices are also increasing and scammers are taking advantage of someone’s desperation by posting fake rental ads and then stealing deposit money.” 

 According to GLVR, closed Sales dipped 18.3% to 752 listings. With inventory still not at sufficient, comfortable levels – there were 826 units in July for Lehigh and Northampton counties. The Median Sales Price increased 9.1% to $300,000. 

New Listings slipped 19.9 % to 876 for the month.
Pending Sales were down 11.9 % to 745.
Months’ Supply of Inventory was down 14.3% to 1.2 months.
The percentage of list price received increased 0.1% to 102.6% of asking price.
Homes sold, on average, in 13 days, down one day, or 7.1%. 

 In Carbon County, the Median Sales Price was unchanged at $220,000.  

Closed Sales were down three listings to 58.  

Pending Sales slipped two listings to 81. New Listings increased 13 listings to 114. Inventory saw a jump and came in at 156 units, leading to a Months’ Supply of Inventory that also increased to 2.2 months.  

Properties moved at a swift pace for the association’s more rural county, with Days on Market coming in at 19 days, up just two days from the previous July. 

 “Despite the current housing market struggles, there are bright spots,” said GLVR President Howard Schaeffer. “Inventory of existing homes has continued to move in a more positive direction, even if it’s not noticeable month-over-month, and despite the summer slowdown, homes are still selling quickly, with the typical home staying on market an average of 13 days.” 

Lehigh Valley housing market sets records

This summer, it’s not just the weather that’s hot, the residential housing market in the Lehigh Valley has been setting records both in median sales price and days on market. 

The Greater Lehigh Valley Realtors reported June’s median home sales price came in at $316,000, an increase of 14.9 percent over the previous June. This new record breaks the one-month record that was set in May, which was $290,000. 

Homes sold on average in 12 days. The previous record was 13 days, set back in July 2021. 

“With monthly mortgage payments up more than 50% compared to this time last year, the rising costs of homeownership have sidelined many prospective buyers,” said GLVR CEO Justin Porembo.  

There are still weak points in the market, across the country 57% of Realtors cited a lack of inventory as the leading reason limiting potential clients from completing a transaction, according to the National Association of Realtors. 

“While some buyers are walking away due to higher interest rates or simply not being able to find a home that fits their needs and/or budget, the Lehigh Valley is a hot commodity, so for every buyer that steps away, another is waiting in the wings,” said Porembo. “The Lehigh Valley housing market is not cooling down quite as much as other parts of the nation.” 

GLVAR did not that closed sales dipped 14.5% to 771 listings.  

With inventory still not at sufficient, comfortable levels there were 770 units in June for Lehigh and Northampton counties – the Median Sales Price increased 14.9 percent to $316,000. 

Meanwhile, new Listings slipped 9.4% to 998; pending sales were down 6.9% to 829. And months’ supply of Inventory was down 8.3% to 1.1 months. 

In Carbon County, the median sales price increased to $250,000. Closed sales were down to 73. Pending sales slipped five listings to 67. New listings jumped to 111. Inventory fell two units to 129 units. Months’ supply of inventory increased to 1.8 months. “ 

“As existing home sales continue to soften, housing supply is slowly improving, with inventory trending – no matter how slightly – in a positive direction,” said GLVR President Howard Schaeffer. “In time, price growth is expected to moderate as supply grows; for now, however, inventory remains low, and buyers are feeling the squeeze of higher prices all around.” 

2020 housing market report available for Lehigh Valley

The Greater Lehigh Valley Realtors has issued its in-depth report on the 2020 local housing market.

Among the highlights for Lehigh and Northampton counties: Closed sales were down 5.7% by the end the year, at 8,131; the number of homes available for sale was lower by 55.9 percent; and sellers received, on average, 99.3% of their original list price at sale.

Overall median sales price increased 11.6% to $229,000 for the year. Single family home prices were up 11% compared to last year, and townhouse-condo home prices were up 10.3%.

On COVID-19: “Real estate was an industry in Pennsylvania that was deemed nonessential and was shut down in the midst of the normally booming spring market. When real estate was reopened on May 19, the local housing market rebounded rather quickly, with repressed demand equating to a wave of showings. Buyers were quicker to return to the housing market in force than sellers, but the Lehigh Valley area was already strapped for sellers pre-COVID. A healthy sales pace continued through the winter months, with strong buyer demand being buoyed by near-record low interest rates and by individuals and families in neighboring states leaving behind high-occupancy locations and buildings in search of more rural living.”

What to expect this year: “As we look to 2021, signals suggest buyer demand will remain elevated and tight inventory will continue to invite multiple offers and higher prices across much of the housing inventory. Mortgage rates are expected to remain low, helping buyers manage some of the increases in home prices and keep them motivated to lock in their housing costs for the long term.”

Near-record snow can’t cool Lehigh Valley’s hot housing market

Ignoring near-record snowfall in the Lehigh Valley, home sales kept their up their torrid pace, increasing 8.9% from January 2020 to January 2021.

Last month, 515 houses sold in Lehigh and Northampton counties, up from 473 a year ago.

It’s too bad real estate agents can’t take the heat from the market to melt the snow, said Tim Tepes, 2021 president of Greater Lehigh Valley Realtors, the trade association that compiles monthly and other statistics.

Snow shovels have become necessary equipment for showings these days, he said. “The market is really strong.”

January started off with healthy buyer demand and market fundamentals, Greater Lehigh Valley CEO Justin Porembo said in a release. Combine that with mortgage interest rates setting record lows and the drive by many buyers “to secure a better housing situation – in part due to the new realities brought on by COVID-19 – (and) our market is experiencing a multiple-offer frenzy not normally seen this heavily during the winter months.”

In addition to a healthy increase in final sales, pending sales (a sign of future activity) rose 3% in January, to 592; median sales price jumped 27%, to $234,900; and the percentage of list price received grew 2.4 percentage points, to 99.8%.

On the inventory side, new listings dropped 10.2 percent to 590. Inventory overall remains very low, shrinking sharply 56.3 percent in January to 567 units, leading to a months’ supply of inventory of just 0.8 months. Days on market in January was 22, 46.3% less than the 41 in January 2020.

This mirrors trends across the country. Existing-home sales continued to increase in January to a seasonally-adjusted annual rate of 6.69 million, up 23.7% from one year ago, according to the National Association of Realtors.

Meanwhile, the U.S. median existing-home sales price rose to $303,900, 14.1% higher from one year ago, and housing inventory skidded to an all-time low of 1.04 million units. The inventory slippage of 25.7% year-over-year is also a record decline nationally.

Tepes said it’s frustrating for entry-level buyers to prequalify for a mortgage but not be able to find a house. A home put on the market may receive four or five offers in just the first day, he said.

In a recent seven-day period, 145 houses were listed but 216 became pending sales, Tepes said. That’s great for the seller – until that seller becomes a move-up buyer dealing with the same inventory shortage as other buyers, he said.

New construction could help temper the shortage, but only so much.

“A robust increase in housing starts in December points to an active year for new construction, but higher material costs, especially lumber, and a limited supply of buildable lots will temper the number of new units,” Tepes said in a release.

“As we look to 2021, signals suggest buyer demand will remain elevated and tight inventory will continue to invite multiple offers and higher prices across much of the housing inventory. The new construction mentioned is welcome and exciting but also not quite enough to change the inventory narrative through the coming year.”

(Greater Lehigh Valley Realtors also covers Carbon County. There, in January 2021, the median sales price increased to $175,000, closed sales were 59 and pending sales decreased to 62, a difference of five from the previous January. New listings fell to 54, inventory dropped to 102 units, leading to 1.3 months’ supply of inventory. Days on market “are moving much faster for the association’s more rural county,” the release noted, with that measurement dropping 44% percent to 47 days.)

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