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- Short Supply, Soaring Prices.
Short Supply, Soaring Prices.
Mike Smutz
February 28, 2025 • Estimated Reading Time: 6 minutes
Your guide to all things Lehigh Valley - new stories every Friday, brought to you by Mike Smutz Real Estate Team
Thank you for joining us for another Friday edition of ‘Living in Lehigh Valley’
VALLEY PULSE
Short Supply, Soaring Prices.
I just had a client to whom I have been showing homes for a while fall in love with a stunning house. When we put in an offer, there were 18 offers, some of which were over asking, cash, and waived inspections…
Another example is a home we listed for sale just a couple of weeks ago. Multiple offers were received in three days, and the buyers paid above the asking price.
What does this mean?
Are we returning to the super hot market from before?
We are still suffering from a shortage of inventory, which is causing buyers to lose opportunities and fight over the homes for sale.
“While we’re seeing positive momentum with an increase in closed and pending sales, the persistent challenge of limited inventory continues to drive up prices in our market – and nationwide,”
In the same news release as the above quote, GLVR (Greater Lehigh Valley Association of Realtors) reported that housing inventory had dipped more than 3%, resulting in just about a one-month supply.
For context, a healthy housing market typically has five to six months of inventory, which puts us back in shortage territory.
Based on the data so far this year, closed sales in Lehigh and Northampton counties increased 7% to 396 in January. This means homes are still selling at a healthy rate, but the bottleneck is the new listing inventory, which was 481 in January, a 0.4% increase.
“The real estate market in the Greater Lehigh Valley remains competitive, with homes selling at near full asking price and in just 25 days on average. While it’s encouraging to see steady buyer demand and an uptick in new listings, affordability remains a key concern."
According to the National Association of Realtors (NAR), the total housing inventory was 1.15 million units in January, a 13.5% decrease from last month but a 16.2% increase from last year.
What does this all mean to you?
Well, it depends.
There are two sides to this coin: buying and selling a home.
If you are a seller, you have not missed the opportunity to participate in one of the craziest markets for selling a historic home.
If you are a buyer, this means that while home prices have slightly improved from previous years, buying a home might be challenging. Due to a lack of inventory, you will need to compete with increased buyer demand.
Either way, my team is here to guide you.
If you have any questions or concerns, reply to this email or call my team at (610) 936-8576. We can help.
CAN’T-MISS EVENTS
Upcoming Lehigh Valley Events
Feb 28 – Lehigh Valley Phantoms Game
Kick off your weekend with an exciting Phantoms matchup against the Bridgeport Islanders at the PPL Center (7:05 PM). It's a great way to experience the local hockey scene in a lively atmosphere.Mar 1 – Phantoms Game Repeat
If you missed the action on the 28th, catch another high-energy Phantoms game on March 1st for a second dose of local sports excitement.Mar 13 – Sebastian Maniscalco: It Ain’t Right
Enjoy a night of comedy with renowned comedian Sebastian Maniscalco. This show promises plenty of laughs and is a perfect mid-week break from the routine.Mar 14 – Phantoms vs. Wilkes-Barre/Scranton Penguins
Another thrilling hockey matchup is set for March 14th. Experience the intensity as the Phantoms face off against a tough opponent.Mar 15 – Rascal Flatts Concert
Music fans won’t want to miss the Rascal Flatts concert on March 15th. Enjoy live country hits and a memorable performance in a family-friendly setting.Mar 20-23 – 2025 Lehigh Valley Auto Show
Car enthusiasts and families alike should mark their calendars for the 2025 Lehigh Valley Auto Show. With interactive displays, special club showcases, and tasting events, this four-day extravaganza at Lehigh University’s Goodman Campus offers a unique blend of innovation and community spirit.Mar 28-30 – NCAA DI Men’s Ice Hockey Allentown Regional
For those who follow college sports, this regional tournament is a competitive event you won’t want to miss, bringing top teams and intense matchups to Allentown.
LOCAL LISTING SPOTLIGHT
Another Happy Seller
Today I closed on a house that a previous agent could not sell.
When I spoke to the sellers, they were worried that the home could not sell. They had no idea why they were on the market for 6 months with little to no showings before coming off the market.
We listed and where able to accept an offer in 1 week.
Congratulations to my sellers!
If you are interested in getting similar results, please reach out by replying to this email or calling my team at (610) 936-8576
Well, that is all I have for you this week.
Remember to connect with me on socials and reach out with any topics you want me to cover!
See you next Friday!
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