Are Home Prices Going Up or Down in Lehigh Valley?

Last week, The Morning Call had an article from the Associated Press in the Business section stating that home prices were expected to decline 5-7%. Four days later, The Morning Call had an article stating that home prices in April rose on average 3.2% in the Valley. Talk about mixed signals!

If I were a Lehigh Valley home buyer or seller, I would be scratching my head thinking "What do I do?". The result? Nothing. The home buyer and seller are in a holding pattern.

Some home buyers are looking for that special house, but at their price. Some home sellers are refusing to list their house (which may be the perfect house for the buyer) because they feel that buyers are offering ridiculous offering prices. Both situations are common scenarios in this market but there are many others.

What I know is that a buyer that offers $20,000 less for a house one week (and not get it) may offer full price for a house the following week.

Also, the home seller that turns down the offer for $5,000 less in week one of the listing may be accepting an offer for $10,000 (or more) less a few months later.

The divergence of the buyer and seller in a typical market is sometimes hard enough to come to a happy middle ground. The mixed signals over the housing market plus the price of gas and concern over job losses have added more insecurity to the home buying process. The margin for what a buyer is willing to pay versus what a seller is willing to accept has grown.

A lot depends on buyer and seller motivation. A motivated buyer will make a worthwhile offer when the correct house is found. A motivated seller will accept the realistic offer rather than dig in their heels and get offended. The professional real estate agent should be continuously educating the buyer and seller on what is going on with the current market...not the national media's take on what is going on.