A new record was set in May for the Median Sales Price of houses in the Lehigh Valley.

The Median Sales Price increased 16 percent to $290,000 in May.

The previous Median Sales Price record of $280,000 was set in March and April.

It’s a $40,000 increase in the Median Sales Price compared to May 2021.

The statistics are contained in the Greater Lehigh Valley Realtors May report, which was released June 14.

The competition for buying a house apparently continues with Lehigh Valley houses selling on average for 104.4 percent of list price in May, up from 103.3 percent of list price in May 2021.

May statistics

• Average sales price increased 18.5 percent in May, to $338,786, up from $285,870 in May 2021. The average year-to-date sales price increased 16 percent to $319,731, up from $275,684.

• Median sales price increased 16 percent in May, to $290,000, up from $250,000 in May 2021. The year-to-date median sales price increased 16.2 percent, to $280.000, up from $241,000.

• Percentage of list price received increased 2 percent to 104.4 percent in May, up from 102.7 percent in May 2021. The year-to-date percentage of list price received increased 1.7 percent to 102.8 percent, up from 101.1 percent.

• Closed sales decreased 3.3 percent to 649 units in May, down from 671 units in May 2021. The year-to-date closed sales are up 1.9 percent to 2,879 units, up from 2,826 units.

• Pending sales decreased 2 percent, to 854 in May, down from 871 in May 2021. The year-to-date pending sales are down 2.6 percent, to 3,317, down from 3,405.

• New listings dropped 0.9 percent, to 994 in May, down from 1,003 in May 2021. The year-to-date new listings are down 1.0 percent, to 3,962, down from 4,003.

• Days on market increased 6.7 percent, to 16 days in May, up from 15 days in May 2021. The year-to-date days on market decreased 10 percent, to 18 days from 20 days.

• Months supply of inventory decreased 10 percent, to 0.9 in May, down from 1.0 in May 2021.

• Inventory decreased 17.9 percent, to 660 in May, down from 804 in May 2021.

• Housing affordability index decreased 30.8 percent, to 99 in May, down from 143 in May 2021.The year-to-date housing affordability index decreased 31.1 percent, to 102, down from 148.

Carbon County

In Carbon County, the median sales price increased to $225,000 in May.

Closed sales increased to 77.

Pending sales decreased to 77.

New listings increased to 104.

Inventory decreased to 100 units.

Months supply of inventory was 1.4 months.

Days on market was 22 days.

May analysis

“High home prices and a surge in mortgage interest rates are slowing buyer activity, and economists predict sales will continue to soften in the near future, but this may then put some much-needed downward pressure on home prices,” said GLVR CEO Justin Porembo.

“Current housing market conditions are not ideal for buyers. We know this. We see this. We’re taking this information to where it matters,” Porembo said.

Led by GLVR’s Government Affairs Director Matthew Marks, a contingent of Realtor members participated in a June 8 visit to the Pennsylvania Capitol. Meeting with legislators, including Sen. Lisa Boscola, Rep. Zach Mako, Rep. Ann Flood, Rep. Ryan Mackenzie and Rep. Doyle Heffley, the group discussed the housing market, how record-setting prices and low inventory are impacting Pennsylvanians trying to buy homes and more.

“Our advocacy for buyers and sellers doesn’t end with one advocacy day in Harrisburg,” said Marks.

“Legislators from the Greater Lehigh Valley were each given a report that details the current housing market in their district, and we were able to discuss directly with them how their constituents are being affected,” Marks said.

“Our legislators having a pulse on these issues will hopefully lead to solutions and relief in known trouble spots,” said Marks.

In attendance for the Harrisburg visit were GLVR CEO Justin Porembo, GLVR Government Affairs Director Matthew Marks, 2022 GLVR President Howard Schaeffer, Noelle Seaton of Home Team Real Estate, Chris Raad of Harvey Z. Raad Realtors, Craig Martin Jr. of Home Team Real Estate, and Sean LaSalle of BHHS Fox & Roach.

“While inventory is still low, the slowdown in sales has provided a much-needed lift to housing supply, with inventory actually starting to trend in a positive direction,” said GLVR President Howard Schaeffer.

“As the Greater Lehigh Valley and the nation continues to explore ways to solve the ongoing housing shortage, we look forward to working with state and federal legislators, and our counterparts at the Pennsylvania Association of Realtors and the National Association of Realtors, on ways to expand housing access through a number of administrative and legislative actions and to help relieve the nation’s housing crisis,” Schaeffer said.

National indicators

After two years of record-setting activity, there are signs the housing market might be cooling.

High home prices and a surge in mortgage interest rates are slowing buyer activity, with home sales declining for the third consecutive month under the weight of soaring homeownership costs.

The National Association of Realtors (NAR) reports existing home sales were down 2.4 percent from the previous month, while pending sales fell 3.9 percent as of last measure, extending the trend of recent months.

Economists predict sales will continue to soften in the near future, which may put downward pressure on home prices.

The slowdown in sales has provided a much-needed lift to housing supply, with inventory up 10.8 percent from the previous month according to NAR. Supply remains down 10.4 percent compared to this time last year, with only 2.2 months’ supply of homes at the sales pace.

As the nation continues to explore ways to solve the ongoing housing shortage, estimated at 5.5 million homes, the Biden Administration recently unveiled the Housing Supply Action Plan, which aims to expand housing access through a number of administrative and legislative actions and help relieve the nation’s housing crisis over the next five years.

GLVR Information

The Greater Lehigh Valley Realtors is a not-for-profit trade association representing more than 3,000 Realtors in Carbon, Lehigh and Northampton counties.

The association provides professional development and training resources, competitive market information, legislative advocacy, peer review and mediation processes for members, and a dispute resolution service for consumers.

The association owns and operates the Greater Lehigh Valley Multiple Listing Service (MLS) and the Greater Lehigh Valley Real Estate Academy.

Realtors are distinguished from real estate licensees by subscribing to a strict code of ethics and standards of practice as defined by the National Association of Realtors.

Information: www.GreaterLehighValleyRealtors.com