Cool housing market has Lehigh Valley home prices up but sales straggling

BETHLEHEM, Pa. — Recent rises in interest rates have resulted in fewer homeowners willing to put their homes on the market.

So says Justin Porembo, chief executive officer of the Greater Lehigh Valley Realtors, in the association's monthly report for July.

• Lehigh Valley home prices are up
• Home sales are down
• Inventory of available homes for purchase remains limited

The result of potential home sellers' hesitation is the continued limited number of homes for sale across the Lehigh Valley.

“Mortgage rates have approached 7% in recent months, leading many prospective buyers to put their home purchase plans temporarily on hold,” Porembo said in a written release.

“But higher rates have also kept many existing homeowners from listing their homes for fear of giving up the low-rate mortgages they locked in a few years ago, when rates were significantly lower,” he said.

Closed sales dipped 32.6% to 528 listings while the median sales price increased 8.5% to $325,500.

Last month, inventory dropped 37.1% from July a year ago meaning there were 589 units in July 2023 for Lehigh and Northampton counties, according to the report.

Additionally in July:

• New listings were down 21.2% to 693
• Pending sales were down 15.6% to 596
• Months supply of inventory dropped 15.4% to 1.1 months.
• Homes sold, on average, in 15 days, an increase of 15.4% (or 2 days)
• Percentage of List Price Received fell 0.3% but still came in at 102.2%.

GLVR President Howard Schaeffer agreed that timid potential sellers are having an effect on the local housing market.

"The lack of inventory has boosted competition among buyers and put upward pressure on sales prices, especially in more affordable markets like the Lehigh Valley, where competition for homes remains particularly strong,” Schaeffer said.