Lehigh Valley builders are trying to keep up with housing demand. How are they doing?

Coming into this year, the Lehigh Valley Planning Commission estimated that the area had a housing shortage of about 9,000 units.

Midway into 2024, the LVPC reported that of the new development in the Valley, there were 3,512 housing units, including 1,042 single-family homes, 373 townhouse units, 1,953 apartments and 66 manufactured homes.

When compared to 2023, it looks like the region is on track to top the total of 4,196 new homes. It was a drop from the previous year, the first one since 2017.

The LVPC attributed that to the numbers leveling off after years of the housing industry playing catch-up after the housing downturn a decade ago and the surge after the COVID pandemic. Rising interest rates, which has been keeping both buyers and sellers on the sidelines, also played a role.

For June itself, the LVPC reviewed 678 housing units, about 100 more from June 2023.

Meanwhile, the Greater Lehigh Valley Realtors released its June statistics, which showed that higher mortgage rates and rising prices have watered down the normally busy month.

The median sales price increased 7.8% for a record $361,100. The previous mark was $335,000 set this past April and in June 2023.

The GLVR said inventory is not at a healthy balance between buyers and sellers. Closed sales dipped 10.6% to 591 listings. Inventory increased 6.6% with 664 units in June for Lehigh and Northampton counties.

GLVR CEO Justin Porembo said buyers and sellers shouldn’t keep waiting for historically low interest rates to return.

“Economists advise buyers — and sellers who are hesitant to list and become buyers themselves — to act now, as the ultra-low rates of 2-3% from the pandemic era are unlikely to return soon,” said Porembo. “Federal Reserve Chair Jerome Powell last week reaffirmed his commitment to maintaining high interest rates until achieving a 2% inflation rate to support broader economic recovery. Buyers waiting for mortgage rates to again be at once-in-a-lifetime lows are likely going to be waiting a very long time.”

New listings increased 7.3% to 748 while pending sales were up 6% to 632. Houses sold, on average, in 15 days.

The percent of list price received was at 102.3%, meaning sellers have more leverage and may be receiving competing offers for the property.

Morning Call reporter Evan Jones can be reached at ejones@mcall.com .