The Lehigh Valley house sales market can be described in one word: Autumnal.

This fall’s Lehigh Valley housing market is apparently as cool as the season’s temperatures.

Closed sales, pending sales and new listings each decreased by double digits, while the median sales price increased by double digits for Lehigh Valley house sales in September.

The Greater Lehigh Valley Realtors (GLVR) reports that September data showed the real estate market continued to slow during the fall season. Rising consumer prices and higher mortgage, as well as the typical fall seasonal slowdown, have cooled activity, according to the GLVR report, released Oct. 12.

Even so, homes are selling on average in 17 days.

Mortgage rates have surpassed seven percent, the Freddie Mac website stated Oct. 27, 2022.

Closed sales of houses in the Lehigh Valley dipped 15.9 percent to 722 listings.

According to the GLVR September report, “inventory [is] still not at sufficient, comfortable levels.

“There were 790 units in September for Lehigh and Northampton counties.”

The median sales price increased 13.4 percent to $298,250.

Other notable housing statistics for September include:

* New listings slipped 21.0 percent to 696.

* Pending sales were down 20.5 percent to 611.

* Months supply of inventory was down 7.7 percent to 1.2 months.

* Percentage of list price received again was above and beyond, but dropped 0.3 percent to 101.3 percent.

* Homes sold on average in 17 days, up just one day from September 2021.

September statistics

• Average sales price increased 9.6 percent in September to $337,112, up from $307,593 in September 2021. The average year-to-date sales price increased 14.1 percent to $335,238, up from $293,795.

• Median sales price increased 13.4 percent in September to $298,250, up from $263,000 in September 2021. The year-to-date median sales price increased 14.7 percent to $292,500, up from $255,000.

• Percentage of list price received decreased 0.3 percent to 101.3 percent in September, down from 101.6 percent in September 2021. The year-to-date percentage of list price received increased 0.8 percent to 102.5 percent, up from 101.7 percent.

• Closed sales decreased 15.9 percent to 722 units in September, down from 859 units in September 2021. The year-to-date closed sales decreased 6.5 percent to 5,982 units, down from 6,396 units.

• Pending sales decreased 20.5 percent to 611 units in September, down from 769 units in September 2021. The year-to-date pending sales decreased 9.8 percent, to 6,125, down from 6,788.

• New listings decreased 21 percent to 696 units in September, down from 881 units in September 2021. The year-to-date new listings decreased 8.3 percent, to 7,345 units, down from 8,014 units.

• Days on market increased 6.9 percent to 17 days in September, up from 16 days in September 2021. The year-to-date days on market decreased 5.9 percent, to 16 days from 17 days.

• Months supply of inventory decreased 7.7 percent to 1.2 months in September, down from 1.3 months in September 2021.

• Inventory decreased 15.7 percent to 790 in September, down from 937 in September 2021.

• Housing affordability index decreased 35.9 percent to 79 in September, down from 123 in September 2021. The year-to-date housing affordability index decreased 36.5 percent to 80, down from 126.

Carbon County

In Carbon County, the Median Sales Price increased to $196,000.

Closed Sales increased to 84.

Pending Sales dropped to 68.

New Listings increased to 89.

Inventory increased to 154 units

Months Supply of Inventory increased to 2.2 months.

Days on Market increased to 31 days.

LV analysis

“The cost of borrowing has reached multi-year highs on everything from credit cards to auto loans in 2022 as mortgage interest rates topped 6 percent for the first time since 2008, causing existing home sales in the U.S. to decline for the seventh consecutive month,” said GLVR CEO Justin Porembo in the Oct. 12 report.

“Inventory remains lower than normal, and as the market continues to shift, experts project homes will begin to spend more days on market and price growth will slow in the months ahead,” Porembo said.

“There’s no denying that the real estate market is in flux,” said GLVR President Howard Schaeffer.

“Potential buyers are contending with higher-than-expected housing prices and interest rates, and sellers are struggling to find new properties to move into before closing on their current residences,” Schaeffer said.

“This has left many wondering whether they should just wait or risk a loss by engaging with a volatile market,” said Schaeffer.

“The market may not be ideal, but your property is out there waiting for you. We’ll help you find it,” Schaeffer said.

National indicators

The 30-year fixed-rate mortgage went above seven percent for the first time since April 2002, leading to greater stagnation in the housing market, according to Freddie Mac as of Oct. 27.

“As inflation endures, consumers are seeing higher costs at every turn, causing further declines in consumer confidence this month [October 2022],” stated Freddie Mac.

“In fact, many potential home-buyers are choosing to wait and see where the housing market will end up, pushing demand and home prices further downward,” according to the Freddie Mac website.

With inflation showing little sign of abating, the Federal Reserve implemented a 75-basis-point hike in September, marking the third such rate increase in 2022, the GLVR September report noted.

Affordability challenges have priced many buyers out of the market this year.

Buyers who do succeed in purchasing a home are finding that the costs of home ownership have increased significantly, with monthly mortgage payments more than 55 percent higher than one year ago, according to the National Association of Realtors.

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