Market Conditions for Allentown, Pennsylvania Reported by The Craig Liles Team, Associate Broker, Senior Residential Specialist, ASP Master Stager, REALTORS Updated March 12, 2012.

Current Market Rating: 1 1 2 3 4 5 Buyer's Seller's

Current Price Trend: 2 1 2 3 4 5 Falling Rising

The Allentown Area has seen in increase in market activity during the First Quarter of 2012. Prices have fallen dramatically over the past few years, but we're finally seeing homes sell! Of course, market conditions vary from neighborhood to neighborhood. In the City of Allentown, 787 homes sold during 2011 which was a 12% decrease from last year, while the average sale price fell by 9%. To put things in perspective, the number of sales in 2011 was only 56% of the volume at our peak in 2006 and stilll 47% less than 10 years ago! Center City Allentown is still hurting for buyers, but investors are still buying the foreclosures at rock bottom prices.
On the brighter side, we've seen alot of homes in the $300+ price range selling over the past few months. This has been the toughest price range to sell since the bottom fell out in 2008. I'm attributing this flurry of activity to the fact that many buyers have held off purchasing a home until they felt we were at the bottom of the market. With interest rates held low and the economy showing signs of life, many buyers have decided now is the time to take advantage of the low prices. NorthWest Lehigh School District had particularly strong sales last year. Catasauqua and Whitehall had the biggest drop-off in sales from 2010 to 2011. Now that we're almost done with the 1st Quarter of 2012, it seems that School District preference is the single biggest factor in buyer's location but we're also seeing a focus on single detached homes vs. twins/townhomes. Property Condition is critical still! Homes need to have been maintained well and free of any glaring defects. If you want to sell for "full market value", you absolutely have to be in pristine condition. If a buyer is going to deal with repairs or updates, they'll likely look for a foreclosure, short sale, or estate that they can buy at bargain prices and make into their own. For every condition issue, you can expect buyers to subtract 2 or 3 times from the price what it would cost to repair. Don't over-improve but also don't ignore the "to do" list!

ZIP Codes: 18102, 18103, 18104, 18106

Location Characteristics: The third largest city in Pennsylvania, Allentown is vibrant with culture, a beautiful parks system, rich history and a bright future. Allentown and the cities of Bethlehem and Easton make up the bulk of the Lehigh Valley, which is the third largest metropolitan area in the state. Adjacent to main arteries such as Interstates 78 and 476 and State Route 22, Allentown is central to several of the Northeast's and Mid-Atlantic's larger metropolitan areas: 55 miles from Philadelphia, 96 miles from New York City, 75 miles from Wilmington, 85 miles from Harrisburg, and 152 miles from Baltimore.

Allentown was originally incorporated as Northamptontown; German settlers played a key role in its development. The city later adopted the name of its founder, Colonial Pennsylvania Supreme Court Chief Justice William Allen. Allentown contributed to several aspects of American history. After the Battle of Brandywine in 1777 George Washington had no hope of saving Philadelphia from the British. The Liberty Bell and the bells of Christ Church were secretly removed to be hidden in Zion's Church. Today visitors can experience a bit of history in the Liberty Bell Shrine Museum located in Zion's Church. Call 610-435-4232 or visit www.libertybellmuseum.org for more information.

Located at 432 W. Walnut Street, the Lehigh Valley Heritage Museum's new 30,000 square foot headquarters is a state-of-the-art climate-controlled facility that houses one of the finest historical research libraries in the state of Pennsylvania. The Heritage Museum includes four galleries with more than 10,000 square feet of exhibits. For exhibit and event schedules, phone 610-435-1074 or visit www.lchs.museum.

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