The Delaware Valley/Lehigh Valley real estate market saw median sale prices rise while inventory declined, according to the Long & Foster Real Estate Market Minute Report. Gloucester County experienced the largest increase in median sale price in the region, rising by 14%, followed by a 12% improvement in Camden County.
Levels of active inventory decreased by double-digits throughout the region in August, ranging from 28% in both Camden and Gloucester counties to 23% in Mercer County. The number of homes sold also slumped in most of the region, except in Gloucester County, which remained unchanged.
In looking toward fall, Gary Scott, president of Long & Foster Real Estate, expects a solid market, despite inventory challenges. “We’re experiencing incredibly low interest rates, a healthy rate of home price appreciation, full employment, a rising stock market and a large segment of millennials who desire homeownership and will try to achieve it,” Scott said.
He also talked further about mortgage rates, which are having an effect on the overall market since they remain the lowest they have been in a few years. “Many people who are thinking about buying now are doing so because rates are so low,” said Scott. “About 80% of mortgages in the United States have interest rates less than 5%. If the magic refinance number is 1% less than your current rate, the buy-now (and refi-now) trend will continue for a while.”