Executive Summary
- Closed sales in the Lehigh Valley decreased by 4.8% year-over-year in October, while pending sales rose by 3.1%.
- The median home sales price increased by 1.9% to $353,750, with homes selling for 100.4% of their list price on average.
- Housing inventory tightened further, with the supply of available homes dropping to just 1.4 months.
The Lehigh Valley housing market saw a seasonal decline in closed sales in October, but a concurrent rise in pending sales and strong mortgage application figures indicate sustained buyer confidence, according to a new report from the Greater Lehigh Valley Realtors (GLVR). Closed sales in Lehigh and Northampton counties decreased by 4.8% compared to the previous year, while the median sales price climbed 1.9%.
In its monthly analysis, the GLVR reported 596 closed sales for October. However, a key forward-looking indicator, pending sales, improved by 3.1% year-over-year, reaching 600 transactions. This suggests that future closing activity is likely to strengthen as the year concludes.
“Mortgage applications for home purchases — a gauge of future buying activity — have posted consistent double-digit annual gains, rising 20% higher than a year ago in mid-October, according to data from the Mortgage Bankers Association,” stated GLVR CEO Justin Porembo. “The Lehigh Valley followed suit in October, with pending sales improving 3.1% year-over-year.”
Home values in the two-county region continued their upward trend, with the median sales price reaching $353,750, up from $347,000 in October of the prior year. The market also remained competitive, as homes sold for an average of 100.4% of their list price and spent an average of just 20 days on the market.
Housing inventory remains a significant challenge for buyers. The number of available homes for sale dropped 4.8% to 794 units, and new listings fell 5.5% to 705. This resulted in a 12.5% decrease in the months’ supply of inventory, which now stands at a tight 1.4 months.
In neighboring Carbon County, the market showed different dynamics. The median sales price decreased to $244,000, with 69 closed sales and 65 pending sales. Inventory in Carbon County stood at 176 units, or 3.1 months of supply, with homes taking an average of 38 days to sell.
Market Outlook
Despite the dip in closed transactions, regional experts view the market as fundamentally sound. “Nationally, we’re seeing signs of renewed buyer confidence, with pending home sales holding steady and showing one of the strongest paces of the year,” said GLVR President Michael Bernadyn, suggesting the local market reflects this resilient national trend.
