June's Market Update

Hello!

June was a good month in a couple of respects.


1) Median Price went up 8.8% month over month. (click here)

Anecdotally, it seems that the spring market has been pushed back this year because of the severe winter weather. The previous spring month's saw less sold properties but a higher velocity of under contract homes.

2) Supply & Demand Month over Month 

June was no different in terms of there being less Sold (-9.8%) homes but MORE under contract homes (18.8%).

3) The month over month Supply chart tells a lot of the story as to why prices are going up. Supply decreased from 6.1 to 5.3 month's of supply (-13.4%).

4) The stream of bank owned properties seems to be dissipating, the supply of bank owned properties is 3.4 months of supply. That is down 39% from 5.7 months.

4) Zillow keeps track of how many households are still under water on their mortgage and their most recent update from May indicates 21.4% of houses holds are underwate.

Conclusion: I find it impressive that Lehigh and Northampton counties are seeing a faster rate of sales (under agreement homes) considering there are less bank properties. June proved that consumers are willing to pay higher prices for homes. If bank supply continues to dwindle, this market could really break into an area of positive momentum.

Negative equity continued to decrease as well, if prices continue to increase and folks continue to pay their mortgage; people might be more inclined to spend on their homes. It is more difficult to justify upgrading a kitchen when a homeowner has negative equity.



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