Monthly Market Update. August's Update, July's statistics.

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Heading into the end of 2015, and going toward 2016, I do wonder what will happen with Interest rates. I wonder how they will affect buyers. Will they even go up? With the Chinese Yuan being devalued last week that could delay a rate increase. I think they could temper Average Sales price; however Supply and Demand are important, and these metrics are pretty solid for the Lehigh Valley in recent months. I think the effects of higher rates will be interesting and I hope they will be mild.

I think a headwind that is not discussed enough with housing is wage growth. People cannot spend what they do not make and if wage growth remains stagnant it is an inherent headwind to home prices increasing. Maybe rising interest rates will signal higher wage growth?

Anyway, to the numbers,


I. The Lehigh Valley Association of Realtor's Report for July. Click Here to see the Full PDF

Reaction: Closed Sales are up  substantially. The inventory is down greatly. The number of Listings year over year has been consistent but the rate at which homes are selling has increased -- it seems to be furthering the momentum of the Lehigh Valley Housing Market.



1. Listings YTD for the past 3 years

Comments: The incoming supply of homes has been relatively flat year over year.


The nice part is in the next section:

2. Pending Sales:

Comments: Its hard to beat  a 19.6% increase in Pended sales. As this continues, it should strain prices higher.


3. Average Days on Market:

Comments: Despite the increase in buyers, the Days on market has remained stagnant. I'd like to see this decrease.

4. Average Sales Price.

This is a good thing :)

5. And this is better. Inventory of homes have declined.

Top Five Risers in Average Sales Price by school District:

1. Northampton
2. Southern Lehigh
3.  Bangor
4. Allentown
5. Easton

II.             Zillow's Report

Comments: Zillow's report is Negative compared to LVAR's report. Zillow ascribes a Zestimate to each home and it updates differently than the Realtors report. Zillow Explanation of Zestimates.