Allentown, PA Housing Market Report

The Allentown real estate market entering late 2025 remains a competitive environment characterized by steady appreciation and tightening inventory. With a median home value of $302,827, the market has seen a consistent 3.9% year-over-year increase. Despite a slight uptick in the average time on market to 43 days, the sale-to-list ratio remains at a perfect 1, indicating that sellers are generally receiving their full asking price. This stability suggests a market that, while cooling slightly from the frantic pace of previous years, still firmly favors sellers due to a 3.87% decrease in active inventory.

Price trends over the last six months show a remarkably linear upward trajectory, with values climbing from $297,449 in July to over $302,000 by December. This incremental growth reflects sustained demand within the Allentown-Bethlehem-Easton metro area, likely driven by its relative affordability compared to major coastal hubs and its robust local economy. The rental market is mirroring this strength, with median rents rising to $1,668, a 2.53% increase that reinforces the region's appeal for both primary residents and buy-and-hold investors.

Looking ahead, the primary challenge for the Allentown market is the persistent lack of supply, with only 1,516 active listings available. For buyers, this means preparation is key; while the three-day increase in days on market offers a slightly larger window for due diligence, the lack of price discounting suggests that well-priced homes will still move quickly. Sellers should capitalize on the current inventory shortage but must remain realistic about pricing, as the market is no longer seeing the extreme over-asking bids that defined the post-pandemic surge.