The Lehigh Valley Real Estate market has quite a few things to boast about, bringing good news to the many home buyers and sellers out there. Locally, the median price of homes is about $155,000, meaning that 81% of the homes sold in the Lehigh Valley in October 2011 were priced between $70K and $250K, good news for first-time homebuyers. Home sales were up by 7% during October, as compared to October of last year. There is about an 8 month inventory of homes on the market, again better than it was most of last year.
The national employment rate, one of the key drivers of homes sales, is beginning to show promising signs of a turning around. As of November 19, the four-week average for jobless claims, was 394,250, which is down 3,250 from the previous four weeks, and at the lowest levels since April 2011. Black Friday Christmas sales reflected a rebound in the confidence levels of consumers.
If you have any questions about real estate, buying, selling, or anything happening in the Lehigh Valley, please don’t hesitate to contact me, Elizabeth Tersigni, as I am always happy to help! You can also connect with me on my Facebook Page.
Home affordability also improved due to interest rates falling even further, giving the opportunity for more first time home buyers to enter the market. First time home buyers accounted for 34% of the home sales in October, which is an increase 32% over last month and over last year. The most wide-spread increase in home sales was seen in the western United States, up 4.4% month to month and up over 15% from last year.
Mortgage rates continue to drop, falling to 3.98% from the 4.23% it was in October of 2010. While mortgage lending conditions continue to be a challenge, more and more people are seeing the advantage of buying a home sooner rather than later. Lawrence Yun, NAR chief economist, said, “Home sales have been plodding along at a sub-par level while interest rates are hovering at record lows and there is a pent-up demand from buyers who normally would have entered the market in recent years. We hope this indicates more buyers are taking advantage of the excellent affordability conditions.”
When buyers decide they are ready to enter the real estate market for the first time, it is important for them to begin the process by carefully assessing their wants, values, and needs, both for the short term and long term. Once that criteria is met, they can move on to more detailed needs like number of bedrooms, bathrooms, etcetera. A recent study shows that location is the most important factor for first time home buyers.
By having the home-buying criteria in mind before walking into a consultation, buyers are off to a better start when meeting with their real estate agent. The consultation allows buyers to fill in any missing gaps within their values, wants, and needs.
If you have any questions about real estate, buying, selling, or anything happening in the Lehigh Valley, please don’t hesitate to contact me, Elizabeth Tersigni, as I am always happy to help! You can also connect with me on my Facebook Page.