The Greater Lehigh Valley REALTORS® (GLVR) reported August data showed that while home prices are at or approaching record highs in many markets, mortgage default and foreclosure rates sit near historic lows.
In the Lehigh Valley, lender-mediated activity in August made up only 2.0 percent, or 40 properties, of the market. That said, according to Justin Porembo, CEO of GLVR, the rise in home prices is outpacing the rise in household income.
“The national median household income has risen 2.6 percent in the last 12 months, while home prices are up 6.0 percent,” Porembo said. “That kind of gap will eventually create fewer sales due to affordability concerns, especially in the middle to high-middle price ranges.”
Back at home, prices in August continued to gain traction. The Median Sales Price increased 6.5 percent to $213,000.
Closed Sales increased 4.7 percent to 907. Pending Sales were up 6.3 percent to 798. Inventory levels shrank 17.1 percent to 2,035 units, leading to a Months Supply of Inventory that dropped 19.4 percent to 2.9 months. Days on Market was down 21.1 percent to 30 days.
“While some are starting to look for recessionary signs like fewer sales, dropping prices and even foreclosures, the fact remains that the trends do not yet support a dramatic shift away from what has been experienced over the last several years,” said Sean LaSalle, 2018 President of GLVR. “Housing starts are performing admirably if not excitingly, prices are still inching upward, supply remains low and consumers are optimistic.”
Carbon County has continued its stellar year with another solid month. Closed Sales increased to 66, versus 58 the previous August, and the Median Sales Price increased to $142,750. Pending Sales climbed to 82, and there was an increase in New Listings, which hit 103. Inventory was up 4.0 percent to 368 units.
The Greater Lehigh Valley REALTORS is a not-for-profit trade association that represents more than 2,000 REALTORS® in Carbon, Lehigh and Northampton counties. REALTORS® are distinguished from real estate licensees by subscribing to a strict code of ethics and standards of practice as define by the National Association of REALTORS®.
As the voice of real estate in the Greater Lehigh Valley, the Greater Lehigh Valley REALTORS® is pleased to offer market insights on its website, www.GreaterLehighValleyRealtors.com. Just click “Market Trends” in the main menu.