Lehigh Valley housing prices continues to be high, but buyers are finding themselves in a competitive market as lower mortgage rates combined with a tight inventory, according to the latest statistics from the Greater Lehigh Valley Realtors.
The median sales price for a house in the Valley was at $350,000 in August. That’s down from $375,000 in July, but 1.4% higher than in August 2024, when it was $345,000.
Inventory was down 13% over the year, with 767 units on the market in Lehigh and Northampton counties.
A 30-year fixed mortgage rate was at 6.35% as of last week, according to FreddieMac. This year’s high was 7.04% the week of Jan. 16.
“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,” Greater Lehigh Valley Realtors CEO Justin Porembo said. “Buyers are clearly watching the market closely and moving quickly when opportunities arise.”
Pending sales were up 4.9% over the year, to 666.
On the other hand, the National Association of Realtors said inventory levels elsewhere in the country were at their highest points since the 2020 COVID lockdown. But while inventory has been on the rise in the South, especially in Florida, and the West, it has remained sluggish in the Northeast.
“With more inventory available and stable mortgage rates hovering around the mid-6% range, buyers were able to negotiate better prices,” the NAR said. “The increase in inventory improved affordability, which in turn led to increased sales activity. Nevertheless, leading indicators such as the Mortgage Purchase Index and Pending Home Sales suggest that the market will start to cool down as summer comes to an end next month.”
The Lehigh Valley market also saw:
New listings slip 4.6% to 705.
Months supply of inventory dropped 17.6% to 1.4 months.
Homes sold, on average, in 20 days, four days slower than the previous August.
“August’s numbers remind us that opportunity is still out there for both buyers and sellers,” GLVR President Michael Bernadyn said. “When interest rates soften, motivated buyers move quickly, and that’s exactly what we’re seeing in pending sales.”
