BETHLEHEM, Pa. — Home sale prices rose in 93% of metro areas across the country in the first quarter of the year, the National Association of Realtors reported Wednesday.
That includes the Lehigh Valley, where home prices in the Allentown-Bethlehem-Easton metropolitan area climbed 8% year-over-over to $321,800, according to the Greater Lehigh Valley Realtors.
“The upward trajectory for the Lehigh Valley’s home prices signifies a robust market, reflective of strong demand — but limited inventory.”GLVR President Lori Campbell
The prices were reflective of 30-year fixed mortgage rates ranging from 6.60% to 6.94%, according to the NAR quarterly report.
“The upward trajectory for the Lehigh Valley’s home prices signifies a robust market, reflective of strong demand — but limited inventory,” GLVR President Lori Campbell said in a release.
“As we step into the spring and summer months, we anticipate this momentum to continue, albeit with potential moderation due to mortgage rates and the ‘golden handcuffs' phenomenon keeping some sellers from leaving behind lower rates," Campbell said.
The phrase “golden handcuffs” refers to homeowners who are hesitant to move or unwilling to move because of being locked into much lower 2%-5% mortgage rates obtained during or before the coronavirus pandemic.
Homeowners in such properties who decide to move are instead keeping their homes to rent out rather than putting them up for sale.
National Perspective
Across the United States, home prices soared year-over-year 11% in the Northeast, 7.4% in the Midwest, 7.3% in the West and 3.3% in the South.
Eight of the 10 most expensive markets were in California, the NAR said in a separate release.
Breaking down the data:
- 30% of the tracked metro areas (63 of 221) experienced double-digit price increases, up from 15% in the fourth quarter of 2023
- Seven percent of markets (15 of 221) experienced home price declines in the first quarter, down from 14% in the previous quarter
- The national median single-family existing-home price climbed 5% from one year ago to $389,400.
“Astonishingly, greater than 90% of the country’s metro areas experienced home price growth despite facing the highest mortgage rates in two decades,” NAR Chief Economist Lawrence Yun said.
“In the current market, rising prices are the direct result of insufficient housing supply not meeting the full demand.”
According to NAR, for a typical starter home valued at $331,000 with a 10% down payment, a monthly mortgage is currently around $1,998, down 5.7% from the previous quarter but up $168 from one year ago.
First-time homebuyers are spending 37% of their family income on mortgage payments and need a qualifying income of at least $100,000 to afford a 10% down payment in 40.7% of markets, NAR said.
While April numbers are not yet available in the Lehigh Valley, homes in March sold, on average, for $335,000 — tied for the highest recorded price in the area — as the spring season kicked into gear, according to NAR
