Today, I’m going to review the March 2020 Real Estate market reports for the Lehigh Valley. These numbers include the time that the Corona virus started in our area and when many of us were told to stay at home.
First thing to talk about is new listings that came on the market. As you can see in 2019 there were 959 listings that came on to the market compared to the 722 of March 2020. That resulted in a whopping -24.7% change! What this mean to you as a home buyer is that there are less properties to look at in your price range and you have more competition with other active buyers looking to purchase. As a seller this means that the market is ripe for your to LIST YOUR HOME WITH ME to get it sold. As a seller you can count on having multiple offers if your house is in good condition and priced right.
Next up is closed sales or properties that have SOLD! You see that the number for 2019 shows that 609 properties sold last year in March. This year only 554 properties sold. Which produced another change of -9.0%. For both the buyer & seller this proves that inventory is low which has caused the numbers to drop. This is not a good indication of the pandemic because the majority of these sales had been in the works about 45 days before they closed in march.
The next slide shows you the length of time that a house is on the market until it gets tagged as SOLD. You’ll see that the days on market has decreased 20.4% to 43 days on market. This time last year it was 54 days on market. The number is a refection of the lack of inventory and the level of competition. There are a lot of buyer in the market with out enough inventory to choose from. One tip that I would give a buyer is be sure that you’re pre-approved for a mortgage before you go looking. You need to be ready to make an offer as quickly as you can and without a pre-approval you won’t be able to write an offer.
The average sales price has risen by 6.5% which is a great thing if you’re a seller. The new average is $238,350 up from 4223,812 last year. As a buyer rising prices is just more proof that the market is hot and you have to make a decision quicker than later. It also means that there isn’t much room for negotiation if prices are rising.
The next slide hasn’t changed much over the last 5 years. The percentage of the list price received by a seller is now at 98.7%. Over the last five years this number has always been in the 97+% range. Good for sellers and a tough negotiation for buyers. But there are
The next slide shows us that the inventory is shrinking. This is a clear indication of the affect that the virus is having on the market. Because we have had the shelter-in-place order and real estate is not considered essential at this point in time, many sellers have been sitting on the sideline which has resulted in the 36.5% reduction in inventory.
The lack of inventory is told in another way….The months supply of inventory. At this point in time we have 1.4 months supply of inventory if we continue to sell at the current rate. The inventory is down by 41.7%. In march of 2018 and 2019 we had 2.4 months supply. This is another clear indication that the pandemic is having an effect on the real estate market.
If you are interested to know what your home is worth, please contact me today for your free consultation. We can have our appointment virtually so that you don’t have to leave the house, but you’ll be able to get the information and answers that you’re looking for.
As you will see by the numbers, the Lehigh Valley Real Estate Market has been going strong for more than a full year! If you want to sell or buy a property, please call me, Diana 610-417-1174. If you want to know how your neighborhood or town are comparing to these overall numbers, please call me and we can get that information to you. If you would like to know how the value of your property has changed, Call me!
The real estate statistics that are being reported are always a month behind because the calculations are not done until after a month’s business has closed.
Here’s the NEWS-
1. 713 New Listings have come on the Market in November that’s a +5.2% increase over last 2016 November. And Year to Date (YTD) we are at 11,116 new listings on the market just -0.1% under last year’s 2016 numbers.
What does this means to you? It means that if you are a buyer you have 5% more properties to choose from than you did in 2016 November. But it also means that the market inventory hasn’t increased any more than it was in 2016. It is slightly under last year’s numbers.
2. 661 Closed Sales or Settlements occurred in November 2017 which was a +7.7% increase over last year. 7,709 YTD closings have occurred in 2017 which is a +4.3% increase over last year’s numbers.
What this means to you? It means that the real estate market is still robust. It is a great time to sell a home.
3. 43 Days on Market (DOM) for November! WOW! That’s a decrease of -24.6% over last November. The YTD DOM number is 48 days on market! A -21.3% decrease over this time last year. Yikes, I don’t ever remember it being this low before.
What this means to you? If you are shopping for a property, you will have stiff competition among other buyers. If you are a buyer, you need to be pre-qualified with a recognized lender and ready to write an offer the MINUTE you see a property that you like. There is no time to “sleep on it”. If you like the property, I can guarantee that there will be several other buyers who like it as well and who are willing to make an offer too. So with that said, in a multi-offer situation be prepared to pay the asking price (if not more) for the property. As a seller it means that your property will sell quickly if it is in good shape and well priced. If it is overpriced for the market it will sit, I promise you.
4. The Median Sales Price is the same for November and YTD is $185,000! The median means that if all of the sold properties were lined up the exact middle of the list is $185,000. This number is up + 5.7% for November and up + 4.5% YTD.
What this means to you? That means that the home prices are rising. It means that because many buyers are paying full asking price (or more) for a property the median number is on the rise. It is another indicator that the market is strong and if you are purchasing a property there is little room for negotiations on price.
5. Average Sales Prices are up too! No surprise here. The Average Sales Price is $217,150 which is +9.9% above what the number was last November. The YTD sales Price is $214,983whichis up +4.8% over where it was last year. WOW!
What this means to you? More of the same…. Prices are on the rise and you’ll need to be prepared for that fact when making an offer. As a seller, WooHOo! It’s a great time to sell. Get your house listed NOW! But remember once you sell, you will be purchasing at the top of the market just like everyone else.
6. Percentage of List price paid is still strong. For November buyers have been paying 98.1% of the asking price which is a +1.4% increase over last November. And the YTD number is just as strong at 97.8% which is a +0.6% increase over last year 2016.
What this means to you? Once again, buyers don’t have much negotiation room on price. And for a seller, if your property is in good market condition you will be getting full asking price or slightly less for your property.
7. This is the scary part…..Inventory Levels….For November the inventory of homes for sale is 1,931 which is a -26.4% decrease over last November. And incidentally, November 2016 levels were -24.0% below that of 2015.
What this means to you? It means that as a buyer you don’t have much choice. And it means that you don’t have time to make a decision. As a seller it means that it’s a GREAT time to sell because you have almost NO competition. So your house will sell quickly and at full (or almost full) price. List NOW, there’s no time to wait!
8. And Drum Rolls Please ….The BIG indicator….Months of Supply of Inventory. It’s at an all time low of 2.7 months supply! This is down -30.8% over last year. And once again last year’s November months of supply was -29.1% lower than what it was in 2015!
What this means to you? It means that as a buyer you will be seeing fewer homes that meet your criteria. It also means that you will be writing more offers because the properties that you are bidding on may be sold to another buyer. And it means that the properties in your price point will be selling quickly. As a seller, it means that you should be considering getting your house on the market. It also means that if your house has not sold, you need to do something about the price or about the condition. Buyers still understand the market and what their money will buy. So they will not bid on properties that they feel are overpriced or in bad condition. And if they do make a bid it will be at their perception of what the property is worth in today’s market place.
Diana Hodgson, Realtor, SRES, SRS, Keller Williams Real Estate
direct phone 610-417-1174
email: Diana@RedHeadAgent.com Website: www.RedHeadAgent.com
If you or someone you know is thinking about selling or buying real estate in Bethlehem, PA, the Lehigh Valley, or in either Lehigh or Northampton counties, please give us a call at 610-417-1174 or look us up on the web at www.RedHeadAgent.com. We take pride in the service which we provide each and every customer and we have build a solid reputation as a result.