The Lehigh Valley Association of Realtors (LVAR) has released a new report on housing market data today that confirms a strengthening housing market.

The initial quarterly report lists positive indicators showing second quarter 2012 home sales have increased 16.7 percent over second quarter sales the previous year.

Pending sales were up 25 percent forecasting the potential for increased sales in the coming months.

An additional sign that the housing market is on the road to recovery is the decrease in inventory of homes for sale, down 16.6 percent over last year.

The housing affordability index is up 7.1 percent at 196. This index measures housing affordability for the region.

An index of 120 means the median household income is 120 percent of what is necessary to qualify for the median-priced home under prevailing interest rates. A higher number means greater affordability.

"The increase in the housing affordability index is good news for homebuyers," said Ryan Conrad, CEO of LVAR.

The average number of days on the market until a home is sold has decreased 4.5 percent from second quarter last year.

"The slight decrease in market time is a plus for people selling their homes," said Conrad.

The average sales price has increased 2.8 percent.

The new report will be released on a quarterly basis to examine trends in the industry.

"As the lead source of real estate information in the Lehigh Valley, LVAR will provide its members and the media with analysis of our local housing market in a quarterly snapshot," said Conrad. "We will continue to share our research as a service to the community," he adds.

The new quarterly report compliments, but will not replace, the monthly market updates LVAR currently produces.

The data was compiled based on household income and interest rates from hsh.com and huduser.org.