Lehigh Valley Housing Market Update: Inventory Dips 13% While Prices Find Stability

The Lehigh Valley real estate scene continues to be a dynamic landscape, marked by a persistent scarcity of homes for sale that is shaping buyer and seller experiences. As of September 2025, a critical report highlights a significant 13% year-over-year dip in housing inventory across Lehigh and Northampton counties, signaling a tightening market for prospective homeowners.

This substantial reduction in available properties, which saw active listings fall to approximately 1,300 units compared to 1,500 just a year prior, underscores the challenges faced by buyers.

While demand remains robust, the limited supply creates a competitive environment, often leading to quicker sales for well-priced homes. The inventory crunch is not a new phenomenon, but its continued intensity is a key factor influencing overall market dynamics.

Despite the constrained inventory, there’s a silver lining for the market: home prices are showing promising signs of stabilization.

The median sale price for a single-family home in the Lehigh Valley reached an estimated $320,000 in August 2025. While this represents a modest increase of about 2% compared to the same period last year, it indicates a pause in the rapid price escalations observed over previous years. Month-over-month, prices have largely held steady, suggesting a market that is finding its footing after a period of intense volatility.

Breaking down the data further, both Lehigh and Northampton counties are experiencing similar trends.

Northampton County, for example, reported a median sale price of approximately $335,000, slightly higher than Lehigh County's $310,000, reflecting regional nuances within the broader Lehigh Valley market. Both counties, however, are grappling with the same fundamental issue of too few homes chasing strong buyer interest.

The low inventory has inevitably impacted sales volume.

The number of closed sales in August 2025 decreased by roughly 10% year-over-year, largely a direct consequence of fewer properties being available to purchase, rather than a significant drop in buyer appetite. Homes that do come on the market are still moving relatively quickly, with the average days on market hovering around 25 days, though this is a slight uptick from the frenzied pace seen at the peak of the pandemic-era buying surge.

What does this mean for the future? Experts suggest that while inventory challenges are likely to persist in the short term, the stabilization of prices could offer a more predictable environment for both buyers and sellers.

Sellers may still command good prices, but the era of multiple, escalating offers might be moderating. Buyers, while still facing limited choices, can approach the market with a clearer understanding of price expectations, potentially reducing some of the bidding war fatigue.

The Lehigh Valley remains an attractive region, drawing interest from various demographics.

As long as this demand holds, and new construction struggles to fully bridge the inventory gap, the market will continue to be characterized by this delicate balance between limited supply and steady, albeit more stable, price growth. Keeping a close eye on interest rate movements and local economic indicators will be crucial for understanding the market's trajectory in the coming months.