The housing market continued to struggle in February, both nationally and locally. As we had mentioned previously, Pennsylvania sales were down a whopping 36% year over year in January, and January 2025 was also down compared to prior January sales. The Lehigh Valley performed better than the state in January, as sales were down 10.1%.

Unfortunately, the malaise continued in February in the Lehigh Valley. Closed sales decreased by almost 16% versus February 2025, and February 2025 was also a slower month compared to prior Februarys. There were only 334 homes sold in February, which is almost impossible to fathom considering the number of people that live in the Lehigh Valley and the number of homes that exist.

Inventory also dropped by 8.9% to 550 units, which is extremely low. The good news is that home prices dropped for the third month in a row, although some of this may be due to reduced demand. A large part of these depressing numbers was due to the extremely cold conditions, consistent snowpack, and frequent snowfall. Thirty-eight years of owning a moving company have taught me that severe cold and snow will “freeze out” a housing market, regardless of the economic conditions.

Underlying Issues Still Remain

However, underlying issues still exist in the housing market. The housing supply gap widened to over 4 million units by the end of 2025, as new home construction significantly lagged. We really need more homes built, and banks need to offer more assistance to help builders.

We must also assist first-time homebuyers financially through legislation to make housing more affordable. The decrease in home prices, coupled with a decent increase in wages, has reduced the gap of average income needed to buy a median-priced home from $60,000 to $50,000, but that is still far too large an affordability gap.

Navigating a Challenging Market

Even in a slow market, people still need to move for work, family, or lifestyle changes. At O’Brien’s Moving & Storage, we understand how market conditions can impact timing and decisions. Whether you are planning a local move or a long-distance relocation, our team is here to help make the process as smooth and stress-free as possible.