Saucon Valley sits within the picturesque Lehigh Valley within eastern Pennsylvania. With outdoor activities, excellent shopping destinations, and quick access to neighboring cities, it is easy to understand why Saucon Valley has become a popular place to call home.
While the housing market has cooled a bit since the height of 2021, buyers still can expect to pay top dollar for homes in this premier swath of Pennsylvania countryside. Saucon Valley appeals to families, young professionals, and retirees alike. Bucolic hills and lush greenery form a stunning backdrop for the area’s many golf clubs, parks, and charming downtowns. Residents can relax away from the bustle of larger city centers but still reach urban amenities easily.
As a result, buyers and sellers in Saucon Valley should anticipate bidding wars, concessions, and negotiations as they navigate the market. Below you will discover the latest information you need to know about the Saucon Valley real estate market.
Saucon Valley’s housing market forecast
Although home values nationally are not as hot as they were in 2021, the market remains strong and generally favorable toward sellers. In Saucon Valley, a strong seller's market shows that median sold prices are up 3.8% from where they were a year ago. The percentage increase for median sold prices is high across the board for all home sizes, though properties with five or more bedrooms have seen the largest increase at 51.4%.
Even with escalating home prices, potential buyers have reason to be hopeful. Some reports suggest that prices should trend downward or at least stabilize among homes for sale in Saucon Valley. In the past year, home values have gone up seven times while dropping five times. This volatility shows that buyers may be able to avoid lofty bids if they can time their efforts well. Both parties involved in a real estate transaction will need to be ready to negotiate effectively and understand that compromise is a likely outcome.
Interest rates continue to rise
After record-low mortgage interest rates in 2021, rates have been rising nationally since then. While buyers in 2021 locked in interest rates of 3% or lower, today’s buyers should be prepared for rates that are twice as high. In 2022, rates soared to 7% after the Federal Reserve took action to curb inflation. In 2023, not much has changed, as the average interest rate currently is 6.9% for a 30-year fixed-rate mortgage.
Some buyers may attempt to wait out inflation issues and the resulting interest rate spikes, but they may be waiting indefinitely. Many experts even believe that interest rates may crest 7% by the end of the year. Those homeowners eager to build equity or simply settle into a new space might not gain much from waiting. With home prices stable or rising, locking in a deal now and refinancing later could be the best option.
Inventory projections improve
Competitive bidding wars and increasing list prices made many potential buyers wary of conducting home searches over the past two years. Additionally, with inventory on a downward trajectory, every available home became highly prized by swarms of buyers. These conditions added up to a bleak scenario for buyers that often left them frustrated. While a six-month supply of homes is standard, the available inventory stood at 1.9 months in late 2020.
By contrast, the inventory numbers went up by 7.2% in April 2023. This is a positive development for buyers hoping to gain more options and more time before making an offer.
Buyers should find reasons to be hopeful about inventory prospects as they hit the market. At the same time, buyers should continue moving at a brisk pace, be pre-approved by a lender, and be clear on their home preferences. In Saucon Valley, 53% of homes sold for a price tag above the listing price, meaning that buyers still need to budget for a heftier offer and the potential for bidding wars.
Current housing market trends
National data shows that existing home sales have slid by 3.4%. Specifically in Saucon Valley, homes were sitting on the market for 31 days in May 2023 versus just 14 days a year earlier. Buyers can view these trends favorably, as they may be able to ask for more concessions from sellers hoping to make an expedient sale. Sellers will need to be careful to avoid pricing their homes too high in a market that is cooling. It may be advisable to make critical repairs to HVAC systems, roofs, foundations, and other essential structures within the home before listing, as well. Doing these repairs before going live with a listing may incentivize potential buyers and result in fewer negotiations. Even though sellers may need to give a little more in today’s market, they can feel optimistic about their prospects for an efficient transaction since most homes in Saucon Valley are selling in under one month.
Explore Saucon Valley’s real estate market
After several years of soaring real estate prices, buyers and sellers can expect a slightly calmer marker courtesy of increases in inventory and rising mortgage interest rates. With volatility still very much a factor, individuals looking to buy or sell should partner with a real estate agent who knows the local landscape. If you are hoping to land your next home in Saucon Valley or preparing your current home for a future sale, you need a strategy that accounts for swift changes in market conditions. An experienced real estate agent can work with you to meet your budgetary and timeline needs while handling the legwork of marketing and negotiating.
The Rebecca Francis Team brings together a wealth of experience in the luxury homes market and an in-depth understanding of area market trends. We earn each client’s trust through a thorough and transparent approach to navigating real estate transactions. Contact us today when you are ready to explore the Saucon Valley market.