Closed sales of houses in the Lehigh Valley declined for a second straight month, down 4 percent in August to 769, compared to 801 in August 2015, according to figures released by the Greater Lehigh Valley Realtors (GLVR).

Closed sales of houses in the Lehigh Valley were down 11.4 percent in July to 714, compared to 806 in July 2015, according to the GLVR.

The July downturn had reversed a three-month increase in closed sales and an increase each month in 2016, with only March posting a decrease.

For the year-to-date, closed sales are 7 percent to 5,221 from 4,881 in 2015.

Pending sales were promising in August, up 18 percent to 793 from 672 in August 2015.

For the year-to-date, pending sales increased 10.2 percent to 5,809, compared to 5,271 for 2015, the GLVR reported.

According to the GLVR, the cooling off of closed home sales in the Lehigh Valley and “much of the country” during August could be the norm because “conventional wisdom indicates that year-over-year declines are going to be present for the remainder of the year, given the low inventory situation in most markets.”

August GLVR data shows dwindling inventory numbers are beginning to adversely affect the Lehigh Valley’s real estate market, cooling down the sales hot streak the market’s been riding most of the year, but not extinguishing rising prices.

According to the GLVR, “Demand is certainly present and has created competitive situations that have kept prices up. Rental prices are also up, which may lure more toward homeownership.

“As inventory continues to drop, the contradictions of today’s market are evident. Sellers should feel confident enough to list homes at fair prices and receive meaningful offers in a healthy residential real estate and overall economic environment.

“However, there may be lingering worry over the availability of move-in ready homes to replace what was sold. On a brighter note, building permits are trending upward. That news should be weighed against the fact that the highest level activity is in multifamily rentals.”

Prices on upswing

Prices continued to increase as the Median Sales Price jumped 6 percent in August to $195,000, compared to $183,950 in August 2015.

The average sales price was also up significantly: 7.2 percent in August to $224,069, up from $208,954 in August 2015.

The percentage of list price received was again relatively stable, remaining unchanged, up 0.6 percent in August to 97.5 percent from 96.9 percent in August 2015.

The affordability index decreased 4.4 percent in August, compared to August 2015.

New listings decreased 16.2 percent in August to 924 from 1,103 in August 2015.

Days on the market decreased 3.4 percent in August to 56 days, compared to 58 days in August 2015.

Months supply again dropped by a big number, falling 45.5 percent in August to 4.2 months, compared to 7.7 months in August 2015.

Inventory also fell dramatically, 40.3 percent in August to 2,807 from 4,702 units in August 2015.

‘Lingering issue’

“The fact that there are not many homes to buy on the market has been a lingering issue in 2016 that we’ve been watching carefully, particularly over the past few months,” said Greater Lehigh Valley Realtors CEO Justin Porembo.

“Earlier in the year, for most of the year, we seemed immune to it. We were putting up some pretty hefty closed sales figures every month, but the issue of low inventory numbers seems to have caught up to us now. In July and now August, we’ve seen closed sales less than what they were a year ago,” Porembo said.

Observed Chris Raad, President of the Greater Lehigh Valley Realtors, “When you consider that there doesn’t appear to be a solution to the inventory issue in the immediate future and that we are entering the holiday season, which is typically a slow time for housing sales, I think it’s safe to say that this leveling off of sales numbers is going to be a reality until the end of 2016.

“Even if this is the case, as long as the declines are slight and other factors remain positive, 2016 overall will still be considered a good year for all of us,” Raad said.

Monthly statistics

Closed sales of houses in the Lehigh Valley decreased 11.4 percent in July to 714, compared to 806 in July 2015.

Closed sales of houses in the Lehigh Valley increased 3.7 percent in June to 858, compared to 827 in June 2015.

Closed sales of houses in the Lehigh Valley increased 14.9 percent in May to 681, compared to 629 in May 2015.

Closed sales of houses in the Lehigh Valley increased 15.5 percent in April to 617, compared to 534 in April 2015.

Closed sales of houses in the Lehigh Valley decreased 4.6 percent in March to 520, compared to 545 in March 2015.

Closed sales of houses in the Lehigh Valley increased 23.8 percent in February to 437 from 353 in February 2015.

Closed sales of houses in the Lehigh Valley increased 14.4 percent in January to 445 from 389 in January 2015.

Carbon County data shows closed sales up 29.5 percent and new listings down just 27.3 percent. Average sales price dipped slightly, falling 3.6 percent to $98,693, with percentage of list price received at 91.9 percent.

The monthly housing data is collected by the GLVR from its Multiple Listing Service, a comprehensive database that includes housing market information from its more than 2,000 Realtor members.

The GLVR 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.

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

Information: GreaterLehighValleyRealtors.com