HANOVER TWP., NORTHAMPTON COUNTY, Pa. – The Lehigh Valley housing market has taken a hit.
The normally-busy spring selling season was tempered due to tighter inventory and higher interest rates, according to the Greater Lehigh Valley Realtors (GLVR).
- Home sells fell 22% in May in the Lehigh Valley
- Increased interest rates and tepid inventory were to blame
- The figures were part of the Greater Lehigh Valley Realtors' May report
Home sales dropped 22% and new listings fell 27.2% from last year, according to the association’s May report.
There were 729 listings in May in Lehigh and Northampton counties.
CEO Justin Porembo said homes that are available are moving fast, with the typical home spending a little over three weeks – 23 days – on the market. Even that, though, is up seven days, or 43.8%, according to the association.
“While fluctuating interest rates have pushed some home buyers to the sidelines, a shortage of inventory is also to blame for lower-than-average home sales this time of year,” Porembo said in the report.
“... Current homeowners, many of whom locked in mortgage rates several percentage points below today’s current rates, are delaying the decision to sell until market conditions improve.”
Inventory plummeted 33.5% from May 2022, with 520 units this year for Lehigh and Northampton counties.
"Due to pronounced inventory squeeze in [listings up to $256,000], middle-income buyers may find the steepest competition when shopping for homes.”Howard Schaeffer, GLVR president
The median sales price increased 6.9%, to $310,000. Pending sales were down almost 21%, to 642.
Sellers are still getting good returns with the percentage of list price received at 102.3%, down 2%, the association said.
GLVR President Howard Schaeffer said the national housing shortage is most acute for middle-income buyers.
“The market is short about 320,000 listings worth up to $256,000, which is considered the affordability range for households earning up to $75,000 annually. Due to pronounced inventory squeeze in these price points, middle-income buyers may find the steepest competition when shopping for homes.”
