Homes in the Lehigh Valley continued to sell quickly in August, with properties averaging just 20 days on the market. This rapid sales pace occurred even as median home prices saw a modest increase and buyer activity remained strong despite limited available homes.
New market data indicates that buyer engagement persisted, even after consecutive months of record-high prices. This suggests a resilient demand within the region's housing sector.
Key Takeaways
- Lehigh Valley median home price increased 1.4% to $350,000 in August.
- Homes sold quickly, averaging 20 days on market.
- Pending sales rose 4.9%, showing continued buyer interest.
- Housing inventory decreased 13%, leading to a 1.4-month supply.
- Carbon County market showed different trends, with higher median price but slower sales.
Lehigh Valley Home Prices and Sales Activity
The median sales price for homes in Lehigh and Northampton counties reached $350,000 in August. This marks a 1.4% increase from the previous month's median of $345,000. Despite this price adjustment, buyers remained active in the market.
Pending sales, which indicate properties under contract but not yet closed, improved by 4.9%. This resulted in a total of 666 transactions for the month. This upward trend in pending sales highlights sustained buyer demand.
"Even with inventory levels remaining tight in August, we saw encouraging signs as pending sales rose nearly 5% and mortgage applications ticked up nationally when rates dipped," said GLVR CEO Justin Porembo. "Buyers are clearly watching the market closely and moving quickly when opportunities arise."
Market Snapshot: Lehigh Valley (August)
- Median Sales Price: $350,000 (+1.4%)
- Days on Market: 20 days (+4 days year-over-year)
- Pending Sales: 666 (+4.9%)
- Closed Sales: 592 (-8.1%)
- New Listings: 705 (-4.6%)
- Available Inventory: 767 units (-13%)
- Months Supply of Inventory: 1.4 months (-17.6%)
Inventory Challenges and Quick Sales
The available housing inventory in the Lehigh Valley continued to shrink. In August, it dropped by 13% to just 767 units. This limited supply contributed to a months' supply of inventory that fell by 17.6%, reaching only 1.4 months. A balanced market typically has a 5 to 6 months' supply.
This tight inventory situation meant homes continued to sell at a fast pace. On average, properties spent 20 days on the market before selling. This was a four-day increase compared to August of the previous year, but still indicates a very active market.
Properties also sold close to their asking price. On average, homes sold for 100.9% of their list price. This figure was only slightly down by 0.2% from the prior August, reinforcing the strong demand from buyers.
Understanding Market Metrics
Median Sales Price: The middle price of all homes sold, providing a more accurate picture than the average, which can be skewed by very high or low sales.
Days on Market: The number of days a property is listed before a contract is signed. Lower numbers indicate faster sales and higher demand.
Months Supply of Inventory: How long it would take for all current homes on the market to sell at the current rate of sales. A low number indicates a seller's market.
Carbon County Housing Market Trends
The housing market in Carbon County showed different patterns compared to the broader Lehigh Valley. The median sales price in Carbon County increased to $265,000. This suggests a growing value for properties in this specific area.
Closed sales in Carbon County saw a jump, reaching 72 transactions. However, other market indicators showed a slight slowdown. Pending sales slipped to 56 transactions, indicating fewer new contracts were signed.
New listings in Carbon County also declined, with three fewer properties entering the market, totaling 88 new listings. Inventory decreased to 195 units, creating a 3.4-month supply. Homes in Carbon County averaged 35 days on the market, which is slower than the Lehigh Valley average.
Comparison: Lehigh Valley vs. Carbon County
- Median Price: Lehigh Valley ($350,000) vs. Carbon County ($265,000)
- Days on Market: Lehigh Valley (20 days) vs. Carbon County (35 days)
- Inventory Supply: Lehigh Valley (1.4 months) vs. Carbon County (3.4 months)
These differences highlight varied market dynamics across the region. While both areas saw price increases, the pace of sales and inventory levels varied significantly.
Factors Influencing the Market
Several factors contribute to the current housing market conditions. Limited availability of homes for sale continues to be a primary driver of competition among buyers. This scarcity puts upward pressure on prices.
According to the Greater Lehigh Valley Realtors, national mortgage applications saw a slight increase when interest rates experienced a temporary dip. This suggests that buyers are highly sensitive to financing costs and are ready to act when conditions become more favorable.
The strong employment market and continued population growth in the Lehigh Valley also support ongoing demand for housing. Even with higher prices, many individuals and families are seeking homes in the area.
Economic Context
The Lehigh Valley, comprising Lehigh and Northampton counties, is a growing economic region in Pennsylvania. It benefits from its strategic location and diverse industries, attracting new residents and businesses. This sustained growth contributes to housing demand.
Real estate professionals continue to monitor these trends closely. The market remains competitive for buyers, with quick decisions often required to secure a property. Sellers, in turn, often benefit from strong interest and competitive offers.
