Pending homes sales were up 20.3 percent from March 2012, while inventory decreased 18.5 percent to 3,240 units, according to information provided by the Lehigh Valley Association of Realtors (LVAR).

The average sales price rose slightly by1.5 percent to $182,491.

Homes remained on the market an average of 82 days, a decrease of 15.5 percent.

Absorption rates improved as the month's supply of inventory was down 29.5 percent to 6.2 months.

New listings decreased 5 percent to 1,005.

"With decreasing inventory and an increase in pending sales, potential homebuyers need to be attune to current market conditions," said Therese Kelley, President of LVAR.

Inventory of approximately four to seven months is typically regarded as constituting a balanced real estate market.

Also, according to LVAR data, the Housing Affordability Index year-to-date comparisons over last year showed a 4.9 percent increase to 215.

March 2013 data comparisons over March 2012 show an increase of 4.5 percent to an affordability index of 210.

The year-to-date comparison of the index is an analysis of affordability in the region. It indicates the median household income in the Lehigh Valley is 215 percent of what is needed to qualify for a median priced home under prevailing interest rates.

During the month of March, 45 percent of the homes sold were under $150,000.

"With the median sales price during the month of March recorded at $160,000 and historically low interest rates, buying a home in the Lehigh Valley has become an affordable option for many residents," said Ryan Conrad, CEO of LVAR. "People who are currently renting and are ready to take on the responsibility of home ownership may discover that a monthly mortgage payment may be less than rent."

LVAR's report is based on data from its Multiple Listing System.