While housing inventory in the U.S. has been slowly rising, that trend has yet to reach the Lehigh Valley. However, the signs are there.
“I have a lot of individuals set up in the Multiple Listing Service for auto-emails, which is a way for them to receive to-the-minute updates on new listings that meet their criteria,” Greater Lehigh Valley Realtors President Lori Campbell said. “Clients are alerted once listing matches hit the market, and there’s a noticeable uptick in the number of properties being sent. This means inventory is improving.”
In its most recent report, the National Association of Realtors reported that the inventory of unsold existing homes nationwide increased 5.9% from one month ago to 1.07 million at the end of February, or the equivalent of 2.9 months’ supply at the current monthly sales pace. The NAR also said pending sales were up 1.6% over the month.
In its March report, the GLVR said homes are selling quickly and above asking price in the Lehigh Valley as the spring real estate market officially kicks off.
“A nationwide rebound in home sales comes amid fluctuating mortgage rates and elevated sales prices, indicating there is plenty of buyer demand heading into the spring selling season,” GLVR CEO Justin Porembo said. “While statistics for the Lehigh Valley aren’t showing a year-over-year jump in sales just yet, what’s happening nationwide is a positive sign of things to come.”
Realtor.com has the Lehigh Valley among its hottest housing markets in the country . The website has the Allentown-Bethlehem-Easton area ranked 16th in February, about five spots lower than the same period of 2023.
John Hayes, CEO of New Tripoli Bank, said that while nationwide sales are improving, the Lehigh Valley’s local inventory continues to be tight, resulting in a drop of sales.
“Further, at 496 units available for sale [in the Lehigh Valley], we’re well below the 12-month rolling average of 607 units, indicating continued softness in closings is likely,” Hayes said. “This, coupled with an increase in mortgage rates over the past month, continues to put pressure on sales prices.
“From what we see, there is strong buyer demand in the Lehigh Valley but not enough units available to satisfy this demand. This has driven continued growth in residential rentals, where rental rates remain strong.”
The average rate for a 30-year mortgage Wednesday was 7.2%, up slightly from 6.97% last week.
After climbing to a 23-year high of around 8% in October, the average rate on a 30-year mortgage had mostly remained below 7% since early December, though it also hasn’t gone below the 6.6% it averaged in mid-January.
Hayes said the continued demand in housing has brought legislation in Harrisburg to increase housing density.
State Rep. Josh Siegel, D-Lehigh, has introduced a bill , HB 2045, to revise the Municipalities Planning Code to require cities, boroughs, towns and townships with a population more than 5,000 people to permit duplex, triplex and fourplex housing in areas currently zoned for single-family residences only.
“While the goal to lower housing costs is laudable, in my opinion we need to carefully analyze infrastructure needs prior to moving in this direction,” Hayes said. “The bill for this work could be large, and that has to be factored into any decisions to move forward.”
Closed sales were down 17% year-over-year to 429 listings, while the median sales price was up 9.8% to $335,000, tying the sales price record set in June 2023.
Homes sold, on average, in 22 days, four days faster than the previous March.
Campbell said Lehigh Valley Realtors are seeing multiple offers on many homes.
“So, while statistics are a great base for where things stand, they can’t show the work being done behind the scenes,” Campbell said. “Realtors in the Lehigh Valley have the clients, and buyers are ready to act when they find their perfect property that is also priced right for current conditions.”
Morning Call reporter Evan Jones can be reached at ejones@mcall.com .
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