With autumn underway and the typically busy summer real estate season concluded, Closed Sales, Pending Sales and New Listings all decreased by double digit percentages in August in the Lehigh Valley housing market.

Meanwhile, the Median Sales Price increased by a double digit percentage.

In the Lehigh Valley market:

Closed Sales dipped 17 percent.

Pending Sales were down 13.4 percent.

New Listings slipped 15.5 percent.

The Median Sales Price increased 19.2 percent.

Homes sold, on average, in 14 days, the same number of days as August 2021.

The Percentage of List Price Received decreased slightly: 0.7 percent to 101.3 percent.

The statistics are contained in the Greater Lehigh Valley Realtors (GLVR) August report released Sept. 13.

August statistics

• Average sales price increased 18.6 percent in August, to $357,801, up from $301,638 in August 2021. The average year-to-date sales price increased 14.8 percent to $334,896, up from $291,655.

• Median sales price increased 19.2 percent in August, to $315,975, up from $265,000 in August 2021. The year-to-date median sales price increased 14.1 percent to $291,000, up from $255,000.

• Percentage of list price received decreased 0.7 percent to 101.3 percent in August, down from 102 percent in August 2021. The year-to-date percentage of list price received increased 1 percent to 102.7 percent, up from 101.7 percent.

• Closed sales decreased 17 percent to 738 units in August, down from 889 units in August 2021. The year-to-date closed sales decreased 5.6 percent to 5,227 units, down from 5,537 units.

• Pending sales decreased 13.4 percent, to 762 units in August, down from 880 units in August 2021. The year-to-date pending sales decreased 7.9 percent, to 5,543, down from 6,020.

• New listings decreased 15.5 percent, to 789 units in August, down from 934 units in August 2021. The year-to-date new listings decreased 6.9 percent, to 6,640 units, down from 7,133 units.

• Days on market were unchanged, 0 percent, 14 days in August, the same as 14 days in August 2021. The year-to-date days on market decreased 5.9 percent, to 16 days from 17 days.

• Months supply of inventory decreased 15.4 percent, to 1.1 in August, down from 1.3 in August 2021.

• Inventory decreased 16.6 percent, to 791 in August, down from 949 in August 2021.

• Housing affordability index decreased 33.3 percent, to 82 in August, down from 123 in August 2021. The year-to-date housing affordability index decreased 29.9 percent, to 89, down from 127.

Carbon County

In Carbon County, the Median Sales Price dipped to $199,000 in August.

Closed Sales decreased to 65.

Pending Sales increased seven listings to 85.

New Listings decreased 10 listings to 80.

Inventory decreased two units to 138 units.

Months Supply of Inventory increased to 5.3 months.

Days on Market increased to 26 days.

August market analysis

“Inflation, higher interest rates and fears of a potential recession have taken a toll on buyers and sellers this summer, leading many people to stay on the sidelines to see what will happen with the market,” said GLVR President Howard Schaeffer.

“But some experts, including NAR [National Association of Realtors] Chief Economist Lawrence Yun, believe the worst of inflation may be over. Although sales prices remain up from this time last year, price growth is expected to moderate in the months ahead as the market continues to shift in a more buyer-friendly direction,” said Schaeffer.

“I continue to recommend consumers have a Realtor® by their side to help them close on the home of their dreams, or the rental property they’ve been eyeing up, at the price and terms they want and need.”

“As mortgage rates surge and remain volatile, it’s becoming increasingly necessary for home buyers to shop around for a loan to find savings,” said GLVR CEO Justin Porembo.

“According to Freddie Mac, borrowers potentially could save an average of $1,500 over the life of a loan by gathering one additional rate quote from a lender. And borrowers could save even more by gathering five different quotes from lenders, up to $3,000, Freddie Mac research shows,” Porembo said.

National indicators

Summer 2022 has been a season of change for the United States real estate market.

With housing affordability at a 33-year low, existing-home sales have continued to soften nationwide, falling 5.9 percent month-to-month and 20.9 percent year-over-year as of last measure, according to the National Association of REALTORS® (NAR).

Pending home sales have also continued to decline, while new listings have steadily increased, with unsold inventory reaching 3.3 months’ supply at the start of August.

The pullback in demand has been particularly hard on homebuilders, causing new home sales and construction to slow.

The week of Sept. 13, the 30-year fixed-rate mortgage pushed to an average of 5.89 percent.

That means the typical household must now spend more than 25 percent of income on mortgage payments, a level most financial experts consider to be cost-burdened.

“Mortgage rates rose again as markets continue to manage the prospect of more aggressive monetary policy due to elevated inflation,” said Sam Khater, Freddie Mac’s chief economist.

“Not only are mortgage rates rising but the dispersion of rates has increased, suggesting that borrowers can meaningfully benefit from shopping around for a better rate,” Khater said.

GLVR Information

The Greater Lehigh Valley Realtors is a not-for-profit trade association representing more than 3,000 Realtors in Carbon, Lehigh and Northampton counties.

The association provides professional development and training resources, competitive market information, legislative advocacy, peer review and mediation processes for members, and a dispute resolution service for consumers.

The association owns and operates the Greater Lehigh Valley Multiple Listing Service (MLS) and the Greater Lehigh Valley Real Estate Academy.

Realtors are distinguished from real estate licensees by subscribing to a strict code of ethics and standards of practice as defined by the National Association of Realtors.

Information: www.GreaterLehighValleyRealtors.com