Real Estate Market Trends in Lehigh Valley, PA
As the year ends and 2020 begins, the real estate market in Lehigh Valley, PA looks “imbalanced” with plummeting number in the inventory which causes high prices.
There are few houses for sale in Lehigh Valley for a low price. So, if you are selling your property in this area, you are fortunate.
Greater Lehigh Valley Realtors (GLVR) released its latest market report for November 2019. The takeaway on the newest report is that there is an increase in new housing permits, but until these houses are built, prices continue to be competitive.
According to Justin Porembo, GLVR CEO, Lehigh Valley real estate will continue to experience higher prices in the coming new year. He said that the solution in this “imbalance” is to create more homes so that home and rent prices will not consistently outgrow income gains. He added saying that the imbalance is more evident on mid to lower-priced properties.
On the positive note, the U.S Commerce Department’s move to increase housing permits has a positive impact on the real estate here. Since October 2019, the increase in newly constructed homes has reached an 12-year all-time high of 1.46 million units. But the same department is convinced that more work is needed to address the condition and to correct low inventory.
Meanwhile, the president of GLVR, Carl Billera, said that building more houses is an excellent stimulator to boost economic health. He reiterates that there is no shortage of buyers seeking homes, but the lack of inventories continues to drag the market down not just in Lehigh Valley but in most parts of the country.
Billera is optimistic about the state of the market in 2020. He is hoping that the Fannie Mae forecast about mortgage rates going lower will encourage home buyers to look for home of their dreams.
Key Points on the November 2019 Stats
- New listings decreased 9.6 percent.
- Pending sales increased 18 percent.
- Inventory levels plummeted to 29.2 percent, or down 33.3 percent in two months.
- Prices continue to go up. The Median Sales Price is up 5.1% to $205,000.
- Days on Market decreased 10.5 % to 34 days.
- Closed sales is only 1.5% or 11 properties sold out of 700.