ALLENTOWN, Pa. — The Lehigh Valley housing market continued an upward trajectory in June, with home prices hitting new highs and sales volumes increasing, according to a report.
The latest report from the Greater Lehigh Valley Realtors says local demand was buoyed by a temporary dip in mortgage rates.
But nationally, cracks in buyer confidence reportedly are starting to show.
“Buyers and homeowners are seizing the opportunity presented by a brief dip in mortgage rates."Greater Lehigh Valley Realtors Chief Executive Officer Justin Porembo, in a report
GLVR said the median sales price in Lehigh and Northampton counties rose to a record $370,000 last month, up 2.3% from June 2024.
Closed sales jumped 9.3% year-over-year to 684, and pending sales surged 15.7%. Inventory remained tight, with just 1.3 months of supply — down 13.3% from the previous year.
The Valley’s housing boom reflects buyers responding swiftly to improved affordability, GLVR Chief Executive Officer Justin Porembo said in the report.
“Buyers and homeowners are seizing the opportunity presented by a brief dip in mortgage rates,” Porembo said.
He noted the Mortgage Bankers Association reported purchase applications jumping 25% compared with this time last year, while refinance activity was even higher.
“In our region, those lower rates are translating into confidence at the closing table, pushing both prices and sales volume to improved heights,” he said.
Local resilience, national uncertainty
But while the Lehigh Valley market appears robust and deals are reaching the finish line, some national housing data tells a different story.
A new analysis by Redfin published early Monday found that 14.9% of U.S. home-purchase agreements were canceled in June — the highest share for that month since at least 2017.
That equates to more than 57,000 deals that fell through, up from 13.9% a year earlier, the report said.
The numbers were based on a Redfin analysis of MLS pending-sales data, which is seasonal, with the data reflecting a comparison of this June to last June.
“Buyers have leverage,” Redfin Premier agent Crystal Zschirnt said in the report.
“Some buyers are canceling deals because another home pops up in the same price range that they like better, or because they discover a flaw and get nervous it’ll cost too much to fix.
“I’ve also heard of some buyers backing out because they’re hoping home prices or mortgage rates are going to plummet soon, even though that’s unlikely."
A tale of two markets?
In the Lehigh Valley, GLVR reported new listings rose 10.1% to 829 and homes still sold quickly — in an average of just 18 days.
One factor keeping the Valley competitive is its relative affordability against the broader market. The national median sales price hit $422,800 in June, while the Lehigh Valley’s median remains nearly $53,000 lower.
“Our market continues to offer strong value for buyers who are priced out of larger metro areas but deserve access to a great place to live and work like the Lehigh Valley,” Porembo said.
Even so, agents across the country — including in places with booming markets such as Florida and Texas — are reporting more negotiations, concessions and other efforts from sellers.
“Sellers are willing to make deals because in today’s buyer’s market, they don’t want to lose out on a sale once they have a buyer under contract,” said Van Welborn, a Redfin Premier agent in Phoenix.
“A few years ago, when the market was more competitive, sellers were able to tell buyers to move on rather than pay for repairs found during the inspection period.
"Now, sellers are doing whatever they can to close the deal.”
Looking Ahead
Redfin forecasts a slight nationwide home price dip — about 1% — by the end of 2025, and mortgage rates staying near 6.8%.
Locally, the outlook remains steadier, with continued demand expected due to affordability and quality-of-life factors.
But with cancellation rates climbing and affordability still a concern, even resilient regions such as the Lehigh Valley may start to feel some ripple effects.
“It’s clear that opportunity is knocking for both buyers and sellers,” GLVR President Michael Bernadyn said.
“With mortgage rates offering a brief window of relief and market activity on the rise, realtors are stepping up to help clients navigate competitive conditions with confidence. The Lehigh Valley market remains strong, and our members are ready to meet the moment.”
Key Stats for June 2025 from GLVR:
- Median Sales Price: $370,000 (Record high)
- Closed Sales: 684 (+9.3% YoY)
- Pending Sales: 699 (+15.7% YoY)
- New Listings: 829 (+10.1% YoY)
- Inventory: 742 units (-4.3% YoY)
- Average Days on Market: 18
- % of List Price Received: 101.7%
