Greater Lehigh Valley Real Estate Market Update*

As the main source of real estate information in the Lehigh Valley, the Greater Lehigh Valley Association of REALTORS® is pleased to provide in-depth data on our local housing market. Information is gathered from our Multiple Listing Service (MLS) generating data from over 2,000 Realtor® members.

October 2021:

The U.S. housing market remains robust, with strong activity reported across both rental and residential housing fronts.  Single-family rent prices are increasing rapidly, as demand for single-family housing and inventory constraints forces some buyers to rent, increasing competition and pushing rents up across the nation.  Meanwhile, sales of new construction single-family homes recently hit a six-month high, rising 14% to a seasonally adjusted rate of 800,000, according to the latest data from the U.S. Department of Housing and Urban Development.

New Listings decreased 16.8% to 834.  Pending Sales were down 8.7% to 817.  Inventory levels shrank 28.0% to 739 units.

Prices continued to gain traction.  The Median Sales Price increased 8.3% to $260,000.  Days on Market was down 20.0% to 16 days.  Sellers were encouraged as Months Supply of Inventory was down 33.3% to 1.0 months.

As temperatures drop, existing home sales continue to be plentiful, buoyed by strong demand, low interest rates, and a slight uptick in new listings in recent months, according to the National Association of REALTORS®.  With interest rates inching upward, and experts expecting further rate increases on the horizon, motivated buyers are hoping to lock in their home purchases to take advantage of what are still historically low rates.

September 2021:

Nationwide, existing home sales were down slightly in August, falling 2% after consecutive months of increases, according to the National Association of REALTORS®.  The decline in existing home sales coincides with rising sales prices, which have continued to soar into fall, with the median sales price of existing homes up 14.9% compared to last year.  Declining affordability has had a significant impact on homebuyers, many of whom have been priced out of the market and are choosing to wait for sales prices to ease before resuming their home search.

New Listings decreased 17.9% to 870.  Pending Sales were down 5.6% to 806.  Inventory levels shrank 22.6% to 815 units.

Prices continued to gain traction.  The Median Sales Price increased 12.1% to $264,450.  Days of Market was down 27.3% to 16 days.  Sellers were encouraged as Months Supply of Inventory was down 31.3% to 1.1 months.

There are signs the market may be shifting; however, New Listings have continued to hit the market, bucking seasonality trends commonly seen in the fall, a time when listing and sales activity typically slows as children return to school.  As inventory increases, competition for homes may soften, and could even bring a moderation in sales prices, which, after 114 months of year-over-year gains, would be music to the ears of homebuyers throughout the country.

August 2021:

The booming U.S. housing market has spilled over to the rental market, which has seen demand for apartment and single-family rentals skyrocket this year, as high sales prices and an inadequate supply of available housing have forced many prospective buyers to rent for the foreseeable future.  Increased demand for housing, along with an improving economy, has competition for rental units soaring, and landlords are taking note, with the national median rent increasing 11.4% in 2021 so far, according to Apartment List.

New Listings decreased 2.9% to 930.  Pending Sales were up 0.2% to 928.  Inventory levels shrank 18.8% to 812 units.

Prices continued to gain traction.  The Median Sales Price increased 10.5% to $265,000.  Days on Market was down 48.1% to 14 days.  Sellers were encouraged as Months Supply of Inventory was down 26.7% to 1.1 months.

In new construction, home builders continue to struggle to meet buyer demand, as housing starts nationwide dropped 7% last month, according to the Commerce Department.  Single-family home construction declined 4.5%, and multi-family home construction, which includes condos and apartment buildings, was also down, falling by 13%.  Labor shortages, rising material costs, and supply-chain setbacks continue to challenge builders, with some projects temporarily paused due to availability and cost of materials.

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*Courtesy of the Greater Lehigh Valley Association of REALTORS®