The hot Lehigh Valley housing market is cooling, according to the latest report of the Greater Lehigh Valley Realtors.

Closed Sales dropped 18.3 percent in July.

Pending Sales were down 11.9 percent.

New Listings dropped 19.9 percent.

The Months Supply of Inventory was down 14.3 percent.

Inventory is still insufficient, with 826 units available in July for Lehigh and Northampton counties.

The Median Sales Price was $300,000 in July, down from a record $318,000 in June.

Percentage of List Price Received increased 0.1 percent to 102.6 percent.

Homes sold, on average, in 13 days, up from 12 days in June.

Factors cited for the cool-off, including rising mortgage rates, record-high sales prices and a lack of inventory, contributed to weakened demand and priced out potential buyers.

The statistics are contained in the Greater Lehigh Valley Realtors (GLVR) July report released Aug. 12.

July statistics

• Average sales price increased 13.8 percent in July, to $352,943, up from $310,088 in July 2021. The average year-to-date sales price increased 14.2 percent to $330,826, up from $289,754.

• Median sales price increased 9.1 percent in July, to $300,000, up from $275,000 in July 2021. The year-to-date median sales price increased 14.5 percent to $289,900, up from $253,250.

• Percentage of list price received increased 0.1 percent to 102.6 percent in July, up from 102.5 percent in July 2021. The year-to-date percentage of list price received increased 1.3 percent to 103 percent, up from 101.7 percent.

• Closed sales decreased 18.3 percent to 752 units in July, down from 920 units in July 2021. The year-to-date closed sales decreased 4.2 percent to 4,454 units, down from 4,648 units.

• Pending sales decreased 11.9 percent, to 745 units in July, down from 846 units in July 2021. The year-to-date pending sales are down 6.3 percent, to 4,815, down from 5,140.

• New listings dropped 19.9 percent, to 876 units in July, down from 1,094 units in July 2021. The year-to-date new listings are down 5.7 percent, to 5,846 units, down from 5,199 units.

• Days on market decreased 7.1 percent, to 13 days in July, down from 14 days in July 2021. The year-to-date days on market decreased 11.1 percent, to 16 days from 18 days.

• Months supply of inventory decreased 14.3 percent, to 1.2 in July, down from 1.4 in July 2021.

• Inventory decreased 19.2 percent, to 826 in July, down from 1,022 in July 2021.

• Housing affordability index decreased 26.3 percent, to 87 in July, down from 118 in July 2021.The year-to-date housing affordability index decreased 29.7 percent, to 90, down from 128.

Carbon County

In Carbon County, the median sales price was unchanged at $220,000 in June.

Closed sales decreased to 58.

Pending sales decreased to 81.

New listings increased to 114.

Inventory increased to 156 units.

Months supply of inventory increased to 2.2 months.

Days on market was 19 days.

July market analysis

“Despite the current housing market struggles, there are bright spots,” said GLVR President Howard Schaeffer.

“Inventory of existing homes has continued to move in a more positive direction, even if it’s not noticeable month-over-month, and despite the summer slowdown, homes are still selling quickly, with the typical home staying on market an average of 13 days.” Schaeffer said.

“As more and more prospective buyers find their home purchase plans delayed, many are turning to the rental market, where competition has intensified due to increased demand,” said GLVR CEO Justin Porembo.

“A few downsides are rental prices are also increasing and scammers are taking advantage of someone’s desperation by posting fake rental ads and then stealing deposit money,” Porembo said.

While the association is an advocate for home ownership, those looking to rent can work with a Realtor to find a rental property that is the real deal.

“I continue to recommend consumers have a Realtor by their side to help them close on the home of their dreams, or the rental property they’ve been eyeing up, at the price and terms they want and need,” said Porembo.

National indicators

Nationally, median household income has failed to keep pace with increasing mortgage payments, with the costs of buying a home about 80 percent more expensive now than three summers ago, according to the

National Association of Realtors (NAR).

At a time of year when home-buying is typically strong, soaring home-ownership costs have caused home sales to decline nationwide for the fifth consecutive month.

Existing-home sales fell 5.4 percent month-to-month and 14.2 percent year-over-year, according to NAR.

Inventory of existing homes has continued to climb during summer 2022, with 1.26 million homes available at the beginning of July, equivalent to a three months’ supply.

And despite the summer slowdown, homes are still selling quickly, with the typical

home staying on market an average of 14 days.

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