Home prices in Pennsylvania's Lehigh Valley region barely moved in August after notable increases for most of this summer, the local real estate agents' group said.
The median sales price for Lehigh and Northampton counties rose 1.4% to $350,000 last month, up from $345,000 in August 2024, according to the Greater Lehigh Valley Realtors. Prices have leveled off after two straight months of record highs.
Prices rose last month as inventory shrank, the group said. New listings fell 4.6% year over year in August to 705, while existing properties fell 13% year over year to 767. The inventory drop shouldn't be seen as a bad signal, Justin Porembo, the group's CEO, said in a statement.
"Even with inventory levels remaining tight in August, we saw encouraging signs as pending sales rose nearly 5% and mortgage applications ticked up nationally when rates dipped," Porembo said. "Buyers are clearly watching the market closely and moving quickly when opportunities arise."
Real estate agents in Bucks County and the capital region of Harrisburg reported a jump in inventory for August — as did the statewide association.
Despite an inventory dip, the Lehigh Valley still has hundreds of homes for sale. They include a three-bedroom Victorian in Bethlehem for $890,000, a three-bedroom ranch in Easton for $279,900 and a three-bedroom bungalow in Nesquehoning for $224,900.
Lehigh Valley is Pennsylvania's third-largest metropolitan area by population, behind Pittsburgh and Philadelphia. The region has seen its population swell by the thousands — 7,000 alone between 2023 and 2024, according to U.S. Census estimates — causing a housing affordability crisis, local officials say.
Housing construction has stalled for nearly a decade as more people pile into the region, creating a housing shortage of roughly 9,000 units that is "pricing families out of neighborhoods," according to the Lehigh Valley Planning Commission. The region will need another 54,000 units by 2050 to keep up with today's housing demand, the commission said in a study.
Days on market for the region grew by four from 16 in August 2024 to 20 last month.
As Porembo noted, pending sales rose 4.9% year over year to 666, but closed sales dropped 8.1% to 592. Porembo and others watching Lehigh Valley's market said Pennsylvania homebuyers took advantage of mortgage rates falling last month and decided to close on more properties.
"August’s numbers remind us that opportunity is still out there for both buyers and sellers," Michael Bernadyn, the group's president and a ReMax agent in Allentown, said in a statement. "When interest rates soften, motivated buyers move quickly, and that’s exactly what we’re seeing in pending sales."