What’s selling and What’s not! – here in the Lehigh Valley

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.

April 2015 – Lehigh Valley Real Estate Market Update

As of April 2015 – (change)                                        YTD 2015 – (change) Closed Sales 507 properties (+10.5%)                                  1,788 (+14.0%) Days on Market 74 (-8.6%)                                                          78 (0.0%) Median Sales Price $165,000 (+3.8%)                          $161,000 (+1.9%) Average Sales Price $205,180 (+13.4%)                        $189,140 (+6.5%) % of List Price received 96.5% (+0.2%)                             96.0% (+0.2%) Months of inventory for March 2015 = 6.2 (-17.3%) (6 months of inventory is considered an even market) If you would like know more about these numbers or numbers in your neighborhood, give me a call! Or if you have any other real estate related question, I am here to help! Call me at: 610-417-1174 or send me an email to: [email protected]

“Where does the money go?” …or… “When will they cash my check?”

Many first-time and seasoned home buyers will ask me, “Where does the money go from the first deposit check?” and/or “When will they cash my check?” All money given as a deposit for real estate goes into an Escrow Account with the Listing Broker – unless the contract says that it is going to be held in another location.  Escrow accounts must be managed so that they follow the legal requirements of state and federal banking laws and real estate law.  The escrow money is counted as part of your total deposit and will be returned to you at the settlement. In Pennsylvania, an Earnest Money check is made & submitted with the contract when the offer is made.   The earnest money check is a check that proves that you are “earnest or serious ” about the offer that you have made for the property. If your settlement date is within 30 days of the contract date, your check must be a cashier’s check or bank check.  The listing broker needs to be sure that your check will clear the account before settlement which is why the bank check is requested. The listing broker must deposit the check by the end of the next business day into their escrow account as soon as the contract is executed. Execution of the contract means the time when both buyer and seller have come to an agreement about terms of the contract, price for the property and both parties have signed and initialed all changes that had been made to the contract during negotiation. Once you go to settlement your earnest & deposit money will be returned to you and you will use it as part of the money needed to purchase your new house. Congratulations on your new home! Contact me with any real estate questions that you may have at [email protected]