BETHLEHEM, Pa. — Lehigh Valley home prices hit a record high in June, matching soaring temperatures and hindering market activity, the Greater Lehigh Valley Realtors said Monday.
The June sales price for the area jumped 7.8% to $361,100 — toppling the previous record of $335,000, a release said.
High mortgage rates and rising prices combined to stall the market after two straight months where sales increased.
“Economists advise buyers — and sellers who are hesitant to list and become buyers themselves — to act now, as the ultra-low rates of 2-3 percent from the pandemic era are unlikely to return soon,” GLVR CEO Justin Porembo said in the release.
June stats
Closed sales plummeted 10.6% in June in Lehigh and Northampton counties, to 591 listings.
It came as inventory increased 6.6%, creating an unhealthy balance between buyers and sellers, the GLVR said.
That pushed the median sales price to its current record high (first set in June 2023 and tied in April 2024).
As he did in May, Porembo repeated that buyers waiting for a downturn in mortgage rates will be disappointed.
“Federal Reserve Chair Jerome Powell last week reaffirmed his commitment to maintaining high interest rates until achieving a 2 percent inflation rate to support broader economic recovery,” Porembo said.
“Buyers waiting for mortgage rates to again be at once-in-a-lifetime lows are likely going to be waiting a very long time.”
"Buyers waiting for mortgage rates to again be at once-in-a-lifetime lows are likely going to be waiting a very long time."GLVR CEO Justin Porembo
Other statistics from the report include:
- New listings increased 7.3% to 748
- Pending sales increased 6.0% to 632
- Months supply of inventory grew 18.2% to 1.3 months
- Percentage of List Price Received slipped 0.5%
- Homes sold, on average, in 15 days, the same amount of days as the previous June
In Carbon County, the median sales price decreased to $215,000, the GLVR reported.
Closed sales also slid to 48, pending sales dropped to 55 and new listings increased to 90.
Inventory saw a bump with 200 units, leading to a month supply of inventory that increased to 3.7 months. Days on market increased to 36 days vs. 27 days the previous June.
Local trends mirror national trends
According to Redfin, which provides residential and real estate brokerage and mortgage origination services, the median U.S. sales price hit an all-time high of $397,482 during the four weeks ending July 7.
It marked the ninth straight week the median sales price has reached a new record high, Redfin said in a release, highlighting sales prices that have remained stubbornly high despite elevated mortgage rates lowering demand.
Pending home sales were down 3.5% year-over-year and mortgage-purchase applications were down 13%.
For those looking for signs that price growth may soon lose momentum, it said the typical home is now selling for 0.4 of a percent less than its asking price.
That marked the first time the typical home has sold under list price at the start of July since 2020.
Economists say a cooler-than-expected inflation report for June is good news for the housing market, as it means the Fed is likely to cut interest rates at its September meeting.
