BETHLEHEM, Pa. – The cost of buying a home in the Lehigh Valley reached a record level in May, even as broader housing market trends suggest buyers elsewhere are gaining negotiating power.
New data released by the Greater Lehigh Valley Realtors shows the region's median sales price climbed 8.7% year-over-year to $375,000, matching the highest median sales price ever recorded locally in July 2025.
The increase came despite a decline in inventory and a slight drop in closed sales.
The report found 528 homes were sold in May, down 2.4% from a year earlier. Inventory fell 7.7% to 693 available units across Lehigh and Northampton counties, while new listings declined 5.3% to 764.
Pending sales, however, increased 4.3% to 659, suggesting buyers remain active despite affordability challenges.
“May’s numbers show that buyers are still stepping forward, but they are doing so in a market where options remain limited,” GLVR CEO Justin Porembo said in a news release.
“Pending Sales are a positive signal, and they align with national reports showing cautious optimism among buyers. But with inventory slipping locally and prices again reaching a record high, affordability and supply remain central challenges for our region.”
“May’s numbers show that buyers are still stepping forward, but they are doing so in a market where options remain limited."
GLVR CEO Justin Porembo
Price remains below the national average
The Lehigh Valley's median sales price remains below the national median existing-home price of $417,700, but local buyers continue to face many of the same obstacles affecting housing markets across the country.
Mortgage rates remain elevated, hovering in the mid-6% range nationally, while housing supply remains constrained.
National housing data also has painted a mixed picture for prospective buyers. A recent Realtor.com analysis found homes nationally are increasingly selling below asking price, a reversal from the bidding wars that defined the pandemic-era market.
The trend has given buyers more leverage in many parts of the country, particularly in the South and West, even as borrowing costs remain high.
The Northeast, however, remains one of the few regions where sellers generally retain an advantage and homes frequently sell at or above asking price.
That dynamic appears reflected in the Lehigh Valley, where sellers received an average of 101.6% of list price in May and homes spent an average of just 20 days on the market.
The region's inventory shortage remains especially pronounced. The Lehigh Valley had just 1.3 months of housing supply available in May, far below the roughly five to six months generally considered a balanced market.
GLVR President Cliff Lewis said demand continues to outpace available housing.
“Even with economic uncertainty and affordability challenges, demand has not disappeared,” Lewis said in the release.
“Homes that are priced appropriately and show well are still moving quickly, often at or above list price. The Lehigh Valley remains a competitive market, and buyers who are prepared, patient, and working closely with a realtor are in the best position to succeed.”
“Homes that are priced appropriately and show well are still moving quickly, often at or above list price."
GLVR President Cliff Lewis
Carbon mirrors national trend
The local figures mirror broader concerns about a nationwide housing shortage. The National Association of Home Builders estimates the United States remains short roughly 1.2 million homes, while builders continue to grapple with high financing costs, elevated construction expenses and regulatory hurdles.
Meanwhile, affordability pressures are no longer confined to major metropolitan areas. Recent reporting by Yahoo Finance found home prices in many rural communities have risen faster than those in suburban and urban markets since the pandemic, fueled by remote workers and buyers seeking more space and lower costs outside traditional population centers.
As demand shifts into smaller communities, one of rural America's traditional advantages — relatively affordable housing — has begun to erode.
That trend has implications for areas surrounding the Lehigh Valley, including Carbon County, where the average sales price reached $298,867 in May — a 27% increase year-over-year.
While still well below Lehigh and Northampton county prices, the county continues to attract buyers looking for more affordable alternatives within commuting distance of larger employment centers.
In Carbon County, closed sales rose to 68 in May while inventory fell to 144 homes. The county had 2.5 months of supply available, nearly double the Lehigh Valley's inventory level but still indicative of a seller's market.
Housing economists say buyers nationwide are increasingly weighing whether to enter the market now or continue waiting for mortgage rates to decline.
While many prospective homeowners had hoped borrowing costs would fall significantly, some analysts argue rates in the mid-6% range may become the new normal, forcing buyers to focus more on negotiating price and less on timing interest-rate movements going forward.