Market Update

“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. over sell themselves. However, the inventory shortage will likely keep prices from dropping too much, as buyer demand continues to outpace supply.”

December Stats

Closed Sales dipped 31.0 percent to 518 listings. Inventory creeped upward by 6.4 percent – there were 602 units in December for Lehigh and Northampton counties. But with inventory still not at sufficient, comfortable levels, the Median Sales Price saw another increase of 3.6 percent to $290,000.

Other notable housing statistics for December include:

  • New Listings slipped 18.6 percent to 364.
  • Pending Sales were down 23.6 percent to 375.
  • Months Supply of Inventory was up 25.0 percent to 1.0 months.
  • Percentage of List Price Received tumbled 2.2 percent to 99.2 percent.
  • Homes sold, on average, in 25 days, an increase of 31.6 percent.

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 Months 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 percent 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.”

Schaeffer added, “Recent generations have become accustomed to rates at historical lows and sub-normal levels. Mature generations and us longtime real estate professionals often reflect when rates were in the mid-to-high teens. Buyers and sellers shouldn’t get wrapped up in the catastrophizing of the mortgage situation, when through these current corrections, rates are resetting back into reality.”

 

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The Greater Lehigh Valley REALTORS® (GLVR) reported November data showed housing affordability continuing to be a major roadblock for market participants, with mortgage rates more than double compared to this time last year.

“Buyers are delaying home purchases in hopes rates will drop, while many sellers are holding off on listing their homes due to weakening buyer demand and to not trade in their current lower rates for significantly higher borrowing costs on their next property,” said GLVR CEO Justin Porembo. “As a result, existing-home and pending home sales have continued to slow as we move into winter.”

November Stats

Closed Sales dipped 32.1 percent to 527 listings. With inventory still not at sufficient, comfortable levels – there were 728 units in November for Lehigh and Northampton counties – the Median Sales Price increased 15.6 percent to $300,000.

Other notable housing statistics for November include:

  • New Listings slipped 27.3 percent to 498.
  • Pending Sales were down 24.4 percent to 520.
  • Months Supply of Inventory was up 10.0 percent to 1.1 months.
  • Percentage of List Price Received went slightly above and beyond, but it did tumble 0.3 percent to 100.6 percent.
  • Homes sold, on average, in 18 days, the same number of days as the previous November.

In Carbon County, the Median Sales Price increased to $235,900. Closed Sales were down to 59. Pending Sales dropped to 61. New Listings fell to 49. Inventory came in at 127 units, a slide of just three properties, leading to a Months Supply of Inventory that remained steady at 1.9 months. Days on Market increased to 37 days.

“Although buyers have more options to choose from, home prices remain high, and soaring borrowing costs have caused monthly payments to increase significantly,” said GLVR President Howard Schaeffer. “REALTORS® have been encouraging the Biden administration and our local legislators to keep housing supply and affordability at the top of the legislative agenda.”

Schaeffer added, “The administration has several tools it can use now to reduce costs. Reducing fees for first-time home buyers, expanding housing voucher programs, and providing incentives for more participation from housing providers would provide direct and immediate support for renters and aspiring homeowners. We look forward to continuing this conversation and bringing help where it matters.”

Joy and Dave Flood
Realtors®, ABR®, SRS®

RS338728 | RS346795

 

Better Homes & Gardens Real Estate Valley Partners

 

4205 Tilghman Street
Allentown, PA 18104

Mobile: 484-239-7336 | 484-239-1295

Office: 610-421-8887

JoyandDaveFlood@gmail.com

 

 

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