Low housing inventory keeps sellers in control locally amid national shift

Yahoo

4 hours ago

As a national report indicates sellers are now outpacing buyers at a significant clip throughout the United States, local real estate professionals noted that isn't the case within Lackawanna and Luzerne counties.
The report released by Redfin — an online real estate brokerage — estimates the U.S. housing market had nearly 500,000 more sellers than buyers, as of April.
Redfin pointed to three factors helping buyers throughout the country: recent economic uncertainty, high home prices and a mortgage rate lock-in effect that is beginning to ease.
Lackawanna County had 274 active listings in May — a 17.1% increase over the 234 in May 2024, according to the Greater Scranton Board of Realtors.
Meanwhile, listings were up 3.5% in April over March, and up 7% compared to the same time last year throughout the state, according to the Pennsylvania Association of Realtors.
However, Bob Vanston, broker/owner of Clarks Summit-based Berkshire Hathaway HomeServices Preferred Properties, stressed many Lackawanna County homes continue to sell quickly.
'What I'm seeing is if you have a property that is well priced, it's sold within 10 days or less with multiple offers,' Vanston said. 'If they're overpriced, they tend to sit but that's always been the case except for 2020, where it was just off the leash. Sellers may be outnumbering buyers in other parts of the country, but certainly not here.'
Vanston believes prospective buyers aren't retreating as much due to concerns regarding interest rates.
'You can get a Pennsylvania Housing Finance Agency (PHFA) loan for about 5.75%,' he said. 'You're looking at low sixes, 6.25, 6.5 and that's what people have grown to accept. If you want a house, waiting for that interest rate to drop does not seem to be a reality anytime soon.'
Vanston, who has more than 40 years of experience in the real estate business, added the cost of homes has changed drastically throughout the decades.
'About 15-20 years ago, you could get a really good house in the city of Scranton for under $100,000,' he said. 'Now, if you're under $100,000, it will need a ton of work.'
However, the lower-priced homes provide an opportunity for entrepreneurs with ambition, Vanston said.
'There are plenty of flippers who are looking for these deals where they can do their work, fix them up if it's on a nice street, and make a handy profit,' he said. 'People want a house that is ready to move into.'
While inventory has somewhat improved throughout the county, Vanston stressed many homes that aren't selling quickly are likely priced too high, even for the current market.
'We're finally seeing expired listings — properties that haven't sold in three to six months or a year on the market,' he said. 'But that usually indicates they're overpriced. If you're on the market for more than 30 days, unless it's a very unique property, you need to look at the price. Sellers often think it's something else, but if you adjust that price, people will come through and you will get offers.'
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David Hourigan
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Wayne Evans, owner and broker of Scranton-based Wayne Evans Realty, noticed a slight blip in January and February where some homes stayed on the market a bit longer and prices dropped a bit, but the trend didn't last.
'It shot right back up again in April and May,' Evans said. 'Days on the market are around 47 and in January it was around 60 or more. All the conditions are there for it continuing to be a seller's market. Listing prices have gone up incrementally and that might have an effect over time, but we're still seeing multiple offers and a super competitive environment for nice properties that are priced well. It's always supply and demand, and supply is historically low and the demand is still there, despite interest rates and despite a lot of different factors.'
A lack of new construction continues to keep inventory low and prices high, Evans said.
'I think that's really a big factor,' he said. 'Material (costs) continue to be higher than they were four or five years ago, so you're not seeing a lot of new construction. We have to somehow figure out how to get at that root cause, but a lot of it has to do with the lack of new construction, especially locally.'
Evans expects the local real estate market will remain strong for sellers through the summer into the fall.
'I don't see anything — unless there is some world event — that indicates the market is going to change for the foreseeable future,' he said.
Despite a modest increase, home inventory levels also remain low in Luzerne County, said David Hourigan, an associate broker/manager for Classic Properties, who is based in Mountain Top.
'Nine months to a year ago, there were around 425 active residential listings,' he said. 'Today, there are 519, but there is still a vast number of buyers waiting for the right neighborhood or house or price range to come along. It's not as frantic — you won't have 20 offers on the same house — but you'll still have multiple offers if the house is maintained and priced properly.'
Homes that are properly priced are still selling in five to 10 days, similar to the climate in Lackawanna County, Hourigan said.
'The housing shortage is so acute — whether it's in Northeastern Pennsylvania or across the country — that the velocity of sales will continue,' he said. 'I've been doing this for almost 50 years and the interest rates are favorable compared to where they were when I started, but we were spoiled by the 2.5% to 4% interest rates, which weren't going to last forever.'
The average sale price has also skyrocketed from 2019 throughout Luzerne County, Hourigan said.
'It's safe to say it's up 40%,' he said. 'We were at such a level, nonincreasing sale price for so long that it was absolutely due to increase.'
Hourigan added high construction costs have also hampered new builds in Luzerne County.
'The cost to develop the land and bring it to market is extraordinary, and then the cost to put the house on it is far more than it was even five years ago,' he said. 'It's not affordable to most, so the demand is limited.'
It remains unclear if or when the real estate market may revert back to pre-pandemic levels, when the playing field was more level for buyers and sellers, Hourigan said.
'I don't know if that's going to happen anytime in the next three to five years, unless land is made available with some grants to put in the infrastructure,' he said.
A construction project is underway on the corner of Adams and E. Lackawanna Ave. in Olyphant Friday, June 6, 2025. (SEAN MCKEAG / STAFF PHOTOGRAPHER)A construction project is underway on the corner of Adams and E. Lackawanna Ave. in Olyphant Friday, June 6, 2025. (SEAN MCKEAG / STAFF PHOTOGRAPHER)