The real estate market in the Lehigh Valley region saw a noticeable decline in both sales and prices during February, despite optimism from industry leaders that improving economic conditions could help attract more buyers as the spring season approaches.
Closed sales in Lehigh and Northampton counties fell by 15.7%, totaling 334 transactions last month. The median sale price also dropped by 4.7%, reaching $333,500 compared to $349,900 during the same period last year.
Inventory continued to shrink by 8.9%, settling at just 550 available units, reflecting a limited supply that covers only one month. Homes are still selling relatively quickly, with an average time on the market of 33 days.
Justin Porembo, CEO of the Greater Lehigh Valley Realtors Association, explained that affordability is showing some improvement, but housing supply remains below pre-pandemic levels.
He noted that lower mortgage rates and wage growth are creating encouraging opportunities for new buyers to enter the market. However, the ongoing inventory shortage will continue to pose challenges for many buyers seeking options that meet their needs.
On the other hand, new listings declined by 10.8%, reaching 421 properties, while pending sales remained relatively stable at 406 properties compared to 412 in the previous February. Homes also largely retained their value, selling at an average of 99.5% of the list price.
