If you’re in the market for a new house and you feel like you have limited choices, you’re not just being picky.
The Greater Lehigh Valley Realtors January report shows that there are 43.4 percent fewer homes for sale in the region compared to last January.
Only 732 new homes, down 5.5 percent, went on the market last month. This limited inventory may slow down home sales in the first half of 2017, the group warns.
“January usually brings out a rejuvenated crop of buyers with a renewed enthusiasm in a new calendar year,” CEO Justin Porembo said. “But continued declines in the number of homes available for sale may push out potential buyers who simply cannot compete for homes selling at higher price points in a low number of days, especially if mortgage rates continue to increase.”
But if you’re looking to sell your home, January’s report could be good news. Homes are selling faster and prices are stable.
The last time January inventory levels dropped close to last month’s levels was back in January of 2005 before the bubble burst.
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The Lehigh Valley is not alone in this phenomenon, Parembo said Tuesday.
“This could directly be some of the consequences of no new construction within the Lehigh Valley and pockets of our country,” he said.
Parembo noted that in addition to low demand, developers have been dealing with a tighter local lending market post-Dodd-Frank as well as land regulations.
These inventory trends might be the incentive some builders need to get back into the market, Parembo said.
“The system is ripe for more home purchasing if there are more homes available to sell,” said Cass Chies, the president of GLVR.
The increased buyer interest is a strong indicator that buyers are feeling more financially stable and they may want to take advantage of historically low interest rates before they rise, Parembo said.
“Wages are on the uptick for many Americans, while unemployment rates have remained stable and relatively unchanged for several months,” Chies said.
Sara K. Satullo may be reached at ssatullo@lehighvalleylive.com. Follow her on Twitter @sarasatullo and Facebook. Find lehighvalleylive.com on Facebook.
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