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LEHIGH VALLEY WEATHER

LV house sales down for eighth month

During August, closed sales of houses in the Lehigh Valley decreased 7.3 percent, the eighth straight month for a decrease.

That's despite a pending sales increase of 9.3 percent in August, compared to August 2013. Pending sales reflect homes that are under contract but have not yet closed.

Closed sales were 652 for August, compared to 703 for August 2013.

The statistics are based on information provided by the Lehigh Valley Association of Realtors (LVAR).

New listings increased 1.5 percent in August to 1,099, compared to 1,083 in August 2013.

Inventory levels grew 4.8 percent in August to 4,356 units.

"The continued increase of new listings, from the same time last year and over the last several months, has proved to be a continuing trend that is increasing the amount of housing inventory from which buyers may choose," said Ryan Conrad, CEO of LVAR.

Year-to-date, the median sales price remained the same at $170,000. The median sales price reflects the median point at which half of the sales sold for more and half sold for less, not accounting for seller concessions, in a given month.

The average sales price for August was $206,462, a 2.4 percent increase.

"The increase in home prices may be encouraging people who were waiting to sell their homes to put them on the market, something that is currently being reflected in the increase in new listings and inventory levels," said Kim Lucas-Mantz, President of LVAR. "Our MLS data indicates that homes are selling for 96.3 percent of their list price."

The National Association of Realtors (NAR) reported that the consumer confidence index in August rose to its highest mark in nearly seven years. Such a trend could lead to improvement in home sales and boost demand for retail commercial spaces.

According to NAR, the index hit 92.4. The last time it was that high was right before the financial market crisis in October 2007 when the unemployment rate was very low at 4.7 percent, compared to today's unemployment rate of 6.1 percent.

"Locally, our members are reporting a renewed confidence in the housing market among homebuyers and sellers," said Conrad.

"Homes are selling quicker, averaging 68 days on the market, in many cases causing multiple bid situations with buyers being forced to act more quickly when they see a home they like," Conrad said.

Lehigh Valley closed sales of houses in July decreased 10.6 percent, 656, down from 734 in July 2013.

Closed sales of houses in June decreased 9.3 percent to 627, compared to 691 in June 2013.

Closed sales of houses in May decreased 7.9 percent to 2,145, compared to 2,328 in May 2013.

Closed sales of houses in April decreased 11.3 percent to 1,524, compared to 1,719 in April 2013.

Closed sales of houses in March decreased 15.2 percent to 407 houses, compared to 480 in March 2013.

Closed sales of houses in February decreased 10 percent, compared to February 2013.

Closed sales of houses in January decreased 3.1 percent, compared to January 2013.

Closed sales of houses for 2013 were 15.5 percent higher than 2012 and 32 percent higher than in 2011.

Closed sales of houses data includes that for single-family homes, townhomes and condominiums.

LVAR collects data from its Multiple Listing Service used by more than 2,000 Realtor members.

LVAR is a not-for-profit trade association providing professional development and training resources, competitive market information, legislative advocacy, a peer review and mediation process for members, and a dispute resolution service for consumers.

LVAR owns and operates the Lehigh Valley Multiple Listing Service, the Lehigh Valley Real Estate Academy and is publisher of Lehigh Valley Real Estate Weekly.