Lehigh Valley Real Estate Search

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.

April 2022:

The average 30-year fixed rate mortgage exceeded 5% in April, the highest level since 2011, according to Freddie Mac.  The recent surge in mortgage rates has reduced the pool of eligible buyers and has caused mortgage applications to decline, with a significant impact on refinance applications, which are down more than 70% compared to this time last year.  As the rising costs of homeownership force many Americans to adjust their budgets, an increasing number of buyers are hoping to help offset the costs by moving from bigger, more expensive cities to smaller areas that offer a more affordable cost of living.

New Listings decreased 9.2% to 914.  Pending Sales were down 2.8% to 760.  Inventory levels shrank 27.1% to 570 units.

Prices continued to gain traction.  The Median Sales Price increased 13.7% to $280,000.  Days on Market was down 26.3% to 14 days.  Sellers were encouraged as Months Supply of Inventory was down 20.0% to 0.8 months.

Affordability challenges are limiting buying activity, and early signs suggest competition for homes may be cooling somewhat.  Nationally, existing home sales are down 2.7% as of last measure, while pending sales dropped 1.2%, marking 5 straight months of under contract declines, according to the National Association of REALTORS®.  Inventory remains low, with only 2 months supply at present, and home prices continue to rise, with the median existing home at $373,500, a 15% increase from this time last year.  Homes are still selling quickly and multiple offers are common in many markets.

March 2022:

Nationally, existing home sales recently dropped to a 6-month low, falling 7.2% as buyers struggled to find a home amid rising prices and historic low inventory.  Pending sales are also down, declining 4.1% as of last measure, according to the National Association of REALTORS®.  Builders are working hard to ramp up production - the U.S. Census Bureau reports housing starts are up 22.3% compared to a year ago - but higher construction costs and increasing sales prices continue to hamper new home sales, despite high demand for additional supply.

New Listings decreased 1.2% to 849.  Pending Sales were down 3.0% to 715.  Inventory levels shrank 27.8% to 486 units.

Prices continued to gain traction.  The Median Sales Price increased 16.7% to $280,000.  Days on Market was down 26.1% to 17 days.  Sellers were encouraged as Months Supply of Inventory was down 30.0% to 0.7 months.

Across the country, consumers are feeling the bite of inflation and surging mortgage interest rates, which recently hit 4.6% in March, according to Freddie Mac, rising 1.4% since January and the highest rate in more than 3 years.  Monthly payments have increased significantly compared to this time last year, and as housing affordability declines, an increasing number of would-be homebuyers are turning to the rental market, only to face similar challenges as rental prices skyrocket and vacancy rates remain at a near-record low.

February 2022:

The U.S. real estate market remains hot ahead of the spring selling season, with existing home sales up 6.7% as of last measure, according to the National Association of REALTORS®.  Experts attribute the growth in sales to an uptick in mortgage interest rates, as buyers rushed to lock down their home purchases before rates move higher.  Mortgage rates have increased almost a full percentage point since December, with the average 30-year fixed-rate mortgage briefly exceeding 4% in February, the highest level since May 2019.

New Listings increased 18.7% to 634.  Pending Sales were up 23.2% to 579.  Inventory levels shrank 36.5% to 407 units.

Prices continued to gain traction.  The Median Sales Price increased 16.0% to $264,000.  Days on Market was up 4.3% to 24 days.  Sellers were encouraged as Months Supply of Inventory was down 33.3% to 0.6 months.

For many buyers, 2022 marks a new opportunity to make their home purchase dreams a reality.  But it won't be without its challenges.  Inventory of existing homes was at 910,000 at the start of the new year, the lowest level recorded since 1999, according to the National Association of REALTORS®, and competition remains fierce.  Affordability continues to decline, as inflation, soaring sales prices, and surging mortgage interest rates reduce purchasing power.  The sudden increase in rates and home prices means buyers are paying significantly more per month compared to this time last year, which may cause sales to slow as more buyers become priced out of the market.

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*Courtesy of the Greater Lehigh Valley Association of REALTORS®