Home News Mortgage rates at 15-year high causing Lehigh Valley market to cool, Realtors say

Mortgage rates at 15-year high causing Lehigh Valley market to cool, Realtors say

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Rising mortgage rates — the highest since 15 years ago — are straining homebuyers’ budgets and cooling domestic activity. Lehigh Valley Real estate market, area agent says.

Mortgage rates rose above 6% in September for the first time since 2008, and national existing home sales fell for the seventh straight month, according to Greater Lehigh Valley Realtors data.federal reserve system Earlier this year, we announced that we were making sporadic changes to Raise mortgage rates to curb rising inflation. Reserves said he implemented another 75 basis point rate hike in September, marking the third rate hike of the year.

Average interest rates for 30-year fixed mortgages rose even higher on October 13th, nearing 7%. The interest rate on the 15-year loan was 6.09%. Freddie Mac reports.

Greater Lehigh Valley Realtors CEO Justin Porembo says realtors are finding borrowing costs to be at multi-year highs, from credit cards to auto loans to rising mortgage rates. said. Median home prices nationwide in September rose to $384,800, up 8.4% from a year ago. It was the 127th consecutive month of year-over-year growth, the longest streak on record. National Real Estate Association (NAR).

3 consecutive months in September Median selling prices faded nationwide After reaching a record high of $413,800 in June, prices continue their usual seasonal trend of falling after peaking in early summer, according to the NAR.

Pollembo noted similar activity in the Lehigh Valley, coupled with the usual seasonal slowdown in the real estate market. In Northampton and Lehigh counties, the median selling price in September rose 13.4% year-over-year to $298,250. In June, Median Lehigh Valley Selling Price It rose nearly 15% to $316,000, breaking the record set in May.

“As inventories remain lower than normal and the market continues to change, experts expect homes to start having more days on the market and price growth to slow in the coming months,” Polembo said. ing.

Nationwide, the inventory of unsold existing homes fell for the second month in a row, to about 1.3 million units by the end of September. That’s 3.2 months worth of him at the current monthly sales pace. On a regional basis, September inventory levels fell by approximately 16% to 790 units.

Howard Schaeffer, president of Greater Lehigh Valley Realtors, says there is no denying that the real estate market is in flux. Closed sales in September also fell by about 16% to 722 listings.

“Potential buyers are battling higher-than-expected home prices and interest rates, and sellers are struggling to find new properties before they close their current residences,” he said. Many are wondering if they should just wait or risk losing money by getting involved in volatile markets.”

But at least it’s good news for sellers.

National Real Estate Association Chief economist Lawrence Yun said despite weak sales, more than a quarter of homes are selling above list prices due to limited inventory, and multiple offers are still open. Nationwide, properties were typically on the market for 19 days in September. 16 days in August 2021 and he is up from 17 days in September. About 70% of the homes sold in September were on the market in less than a month, he said.

Lehigh Valley homes sold in an average of 17 days in September, just one day more than the year before, according to a group of local realtors.

“The current supply shortage contrasts with the previous major market downturn from 2008 to 2010, where inventory levels were four times what they are today,” Yun said.

Here are some other notable housing statistics for Lehigh and Northampton counties for September compared to September 2021, according to the Greater Lehigh Valley Realtors.

  • New listings fell 21% to 696.
  • Pending sales were down approximately 21% to 611.
  • Monthly supply of inventories was down about 8% to 1.2 months. This figure measures how many months it would take to sell the number of homes currently on the market.
  • The percentage of list prices received was up, but dropped from 0.3% to 101.3%.

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To contact Pamela Sroka-Holzmann: [email protected].

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