Newly released data shows that high interest rates and a lack of inventory stymied home sales in the Lehigh Valley last month.
The Greater Lehigh Valley Realtors said this week that closing sales in May dropped by 22% compared to this time last year with 519 listings, while pending sales were down 20.8% at 642.
GLVR CEO Justin Porembo said both fluctuating interest rates and the inventory shortage are behind the lower-than-average home sales in what would normally be a busy spring selling season.
“…current homeowners, many of whom locked in mortgage rates several percentage points below today’s current rates, are delaying the decision to sell until market conditions improve,” he stated.
Porembo added that available homes are moving fast with only 0.9 months’ supply heading into June.
The GLVR’s report noted that in May homes sold on average in 23 days, though this is still up 43.8%, or around seven days.
New listings dipped by 27.2% to 729 and inventory decreased by 33.5%, to 520 units in Lehigh and Northampton counties.
The realtor group also said the median sales price increased by 6.9% to $310,000 last month.
GLVR President Howard Schaeffer said nationally, the housing shortage is most significant for price points that are affordable to middle-income buyers.
He said the market is short around 320,000 listings worth up to $256,000, which is considered the affordability range for households earning an annual income of up to $75,000.
“Due to the pronounced inventory squeeze in these price points, middle-income buyers may find the steepest competition when shopping for homes,” Schaeffer said.
(Original air-date: 6/17/23)
