Closed sales trend higher than last year for another month

• Active listings at the end of February were 6.3% higher than last year. This marks the first year-over-year gain in inventory in the Mid-Atlantic since May 2023.
• New listings increased 10.2% in February 2024 compared to February 2023. More new listings is a welcome sign for buyers struggling to find the right home, yet the market remains tight.
• Closed sales were up 0.5% in February, another modest gain following January’s increase. Despite mortgage rates nearing 7% in February, new pending sales were just 0.2% lower than last year.
• The median price continues to rise. Overall, the median sold price increased 6.4% in February. The median price for townhomes had stronger growth than single-family homes, suggesting higher demand for more affordable options.

North Bethesda, MD., March 11, 2024 (PRNewswire) Winds of change occurred in February as active listings at the end of the month finally surpassed their year-ago amount. Inventory was 6.3% above where it was in February 2023, making it the first gain since May 2023.

New listings have also started coming online, and February had 10.2% more new listings than last year. However, supply is only 44% of where it was in February 2019.

“More new listings and rising inventory is a welcome sign for Mid-Atlantic buyers,” said Dr. Lisa Sturtevant, Bright MLS Chief Economist. “The 1.54 months of supply indicates there will still be tough competition. Price pressure and a brisk pace will be features of the spring market, especially for detached single-family home buyers where supply is the most depleted.”

Closed sales increased 0.5% in February compared to a year ago, the second consecutive month of modest increases in sales activity. And even with rates approaching 7% again last month, buyer activity did not decline significantly as new pending sales dropped just 0.2%.

More activity is likely on the horizon. Buyers will have more opportunities as additional new listings are added. The direction of mortgage rates will influence how busy the spring market will be.

February Mid-Atlantic Housing Market by Region 

Philadelphia:
Competition persists despite elevated mortgage rates
Inventory relatively flat compared to last year

• Home prices continued to rise in the Philadelphia metro area, increasing 10.4% compared to a year ago. This is the fastest pace of home price growth since May 2022.
• The speed of transactions has been quick. Half the homes sold in February 2024 were off the market in 20 days or less, which was two days faster than February 2023.
• Supply is a big constraint. Active listings at the end of February were 0.3% above last year. Other markets in the Mid-Atlantic have seen rising inventory, while Philadelphia’s is basically flat.
• Both closed sales and new pending sales trailed behind last year, down 0.4% and 2.1%, respectively. New pending sales were impacted by higher mortgage rates in February.

Baltimore:
Price Leap Ahead of Spring
Not all counties had upticks in inventory

• The median sold price was $360,000 in the Baltimore metro area for February 2024. The 9.4% increase was the biggest year-over-year gain since May 2022.
• Price pressure and a brisk market pace are likely to stay around, especially when rates drop and more buyers join the market. Half the homes sold in 16 days or less in February.
• Overall inventory increased 9.9% across the Baltimore region. However, Anne Arundel, Carroll, and Howard counties all had fewer active listings compared to last year.
• Home sales are still tracking behind last year’s levels. New pending sales are lagging as well, down 2.4% year over year. Rising mortgage rates in February is one reason why sales activity was lower than a year ago.

Washington, D.C.:
Inventory finally exceeds year ago amount
Sales activity lags as supply is tight and rates stay elevated

• Inventory in the Washington, D.C. metro increased for the first time since March 2023 (+5.5%). However, detached single-family home inventory is still on the decline.
• The market is still tight, with only 1.29 months of supply. The region’s suburbs are more supply-constrained than D.C. proper, which has 20.4% more active listings than a year ago.
• Low supply, combined with elevated mortgage rates, has limited transactions. Closed sales were down 2.7% compared to last year. Sales activity is still tracking well below pre-pandemic levels.
• The median sold price rose 4.7% in February. Price growth was widespread, in all markets except the District of Columbia. Single-family homes, which have the most depleted supply, saw the strongest price growth, up 10.7%.

The full Mid-Atlantic and market metro area reports are available at BrightMLS.com/MarketInsights.

About Bright MLS
Bright MLS was founded in 2016 as a collaboration between 43 visionary associations and two of the nation’s most prominent MLSs to transform what an MLS is and what it does, so real estate pros and the people they serve can thrive today and into our data-driven future through an open, clear and competitive housing market for all. Bright is proud to be the source of truth for comprehensive real estate data in the Mid-Atlantic, with market intelligence currently covering six states (Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia) and the District of Columbia. Bright MLS’s innovative tool library—both created and curated—provides services and award-winning support to well over 100K real estate professionals, enabling their delivery on the promise of home to over half a million home buyers and sellers monthly. Learn more at BrightMLS.com.

SOURCE Bright MLS

Closed sales are higher than 2023, though inventory remains low

• The median sale price in the Bright MLS service area increased by 5.7% in January. Prices in the Mid-Atlantic have been rising for 143 consecutive months (with one exception last April when the median price was flat).
• Falling mortgage rates at the end of last year encouraged more closed sales activity in January compared to last year. The number of closed sales in the Mid-Atlantic was up slightly, though sales were up more strongly in more affordable regions.
• New listing activity continues to be very low. Overall, new listings in the Bright MLS service area were 9.9% lower in January 2024 than what they were in January 2023.
• Active listings have been declining for eight consecutive months. The year-over-year gap has narrowed, down to a 1.7% difference in January.

North Bethesda, MD – Feb. 12, 2024 (PRNewswire) Overall, January closed sales across the Bright MLS service area were higher than a year ago, suggesting that buyers took advantage of falling rates at the end of last year. However, new pending sales and showing activity was relatively limited. The wintery weather is partially responsible for the lower activity. The other culprit was the Mid-Atlantic’s restricted supply which has lingered near historic lows.

Active listings at the end of January 2024 stood at 26,962. The inventory is at a 1.7% deficit compared to a year ago, but the gap has continued to close for the eight consecutive months where it declined year-over-year.

“Demand outpaced supply in 2023 and the trend will continue in 2024,” said Dr. Lisa Sturtevant, Bright MLS Chief Economist. “More sellers should be joining the market this year and additional new listings will be a welcome sign for buyers, but it will still be a very competitive market.”

While new listings surged seasonally from December, the number of new listings in January was 9.9% lower than last January. However, the outlook is for the market to pick up this spring leading to more inventory, bringing buyers more options.

Mortgage rates are likely to bump around in early 2024 before coming down later this year. The 2024 market will remain competitive, and buyers will still have to act quickly.

January Mid-Atlantic Housing Market by Region

Philadelphia:
No Relief in Prices to Start 2024
Inventory remains limited impacting activity

• In January, home prices were up in all counties, with the metro area median price up 8.3% year-over-year. The median price in the Philadelphia metro area is now 55% higher than it was in January 2019.
• Inventory is still very limited across the region. There were just 8,511 active listings across the region at the end of January, down 6.5% compared to a year ago. There is very little new listing activity, as current homeowners are still sitting on the sidelines, holding onto low mortgage rates.
• Buyers who are in the market need to act quickly. In January, the typical home sold in just 18 days, which is three days faster than a year ago.
• Showing activity is lower than it was last year, but that is not an indication of less demand. Rather, it is an indication of too few homes available for sale.

Baltimore:
Buyers Enticed by January Dropping Rates
But continue to face higher prices and quick market

• Closed sales outpaced last year’s level, which reflected more buyers putting in offers at the end of the year. There were 1,728 closed sales in January 2024, 1.6% higher than January 2023.
• In January, the median sold prices was $355,000, up 7.6% from a year ago. Prices were up strongly in all local markets in the metro area.
• Half the homes in January 2024 were off the market in 19 days or fewer. The median days on market is 3 days quicker than last year.
• Overall, there were 3,519 active listings at the end of the month, which is 1.8% lower than a year ago. Inventory is less than half of what it was in 2019. There has been a dearth of new listing activity across the Baltimore area, as current homeowners are staying on the sidelines, holding onto low mortgage rates.

Washington, D.C.:
Buyers Undeterred by High Prices and Elevated Rates
Median price growth starts strong in 2024, up 7.0%

• Closed sales inched above last year, increasing a slight 0.2% compared to January 2023. Despite affordability challenges, there remains a strong desire for homeownership in the Washington, D.C. metro.
• In January, the median sold price in the Washington, D.C. metro was $535,000, rising 7.0% year-over-year. Prices in the region have been rising steadily since last summer and the median price is now 29% higher than it was in January 2019.
• Showing activity and new pending sales were lower in January than they were last year. Elevated rates have tempered some demand yet the major constraint on the Washington D.C. metro area housing market is a lack of inventory.
• There was a total of 4,930 active listings at the end of January, down 4.8% compared to a year ago. New listing activity has been at historically low levels, as current homeowners remain on the sidelines, holding onto their low mortgage rate.

The full Mid-Atlantic and market metro area reports are available at BrightMLS.com/MarketInsights.

About Bright MLS
Bright MLS was founded in 2016 as a collaboration between 43 visionary associations and two of the nation’s most prominent MLSs to transform what an MLS is and what it does, so real estate pros and the people they serve can thrive today and into our data-driven future through an open, clear and competitive housing market for all. Bright is proud to be the source of truth for comprehensive real estate data in the Mid-Atlantic, with market intelligence currently covering six states (Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia) and the District of Columbia.

SOURCE Bright MLS

Home prices rise faster than they have in more than a year

• The median sale price in the Bright MLS service area increased by 8.1% in December. This is the fastest pace of price growth since May 2022. Prices were up strongly across the Mid-Atlantic region.
• A lack of fresh new listings fueled the robust price appreciation. There were 11,780 new listings that came onto the market in December, which is the lowest level of monthly new listings in more than two decades.
• After hitting a 23-year high in early November, mortgage rates fell through the end of 2023. Those lower rates fueled the sizeable price growth in December.
• Mortgage rates will continue to fall in 2024, which will improve affordability for homebuyers. Declining rates could also bring more sellers into the market, resulting in a busy early 2024 market.

North Bethesda, MD – Jan. 11, 2024 (PRNewswire) Falling mortgage rates brought more buyers into the market in December, but they faced the same constraint that has been plaguing buyers for the past two years—a serious lack of homes to choose from. There were 13,109 new pending sales through the Bright MLS service area in December, which was up very slightly (+0.5%) compared to the extremely low levels of market activity in December 2022.

While transactions were still relatively low in December, home prices rose strongly. The median price was up 8.1% year-over-year, with strong price appreciation for all housing types (i.e., single-family detached, townhomes, and condos) and across all regions throughout Bright’s footprint.

Bright MLS December Housing Report: 2023 Housing Market Ends Surprisingly StrongPost this

“It was definitely a little bit of a surprise to see prices rise so fast in December,” said Dr. Lisa Sturtevant, Bright MLS Chief Economist. “Lower mortgage rates enticed more buyers, but they are still finding a dearth of inventory. Prices will continue to rise until there is more inventory.”

Existing homeowners are still largely sitting tight. There were 11,780 new listings added to the market in December, which is a more than two-decade low. At the end of 2023, there were just 27,592 active listings on the market, which is down 2.9% from a year ago. That level of inventory translates into 1.52 months of supply. A balanced market would typically have between four and five months of supply.

There is significant pent-up demand in the market which will likely be unleashed in early 2024 if mortgage rates continue to fall. However, the prospects for a busy 2024 market depends on whether there is more inventory. Right now, buyers should expect a very competitive market in 2024, with prices continuing to rise.

December Mid-Atlantic Housing Market by Region

Philadelphia:
Fast Home Price Growth to End the Year
Median sale price rose 9.4%, fastest growth since spring 2022

• In December, the median sale price was $350,000, which was up 9.4% compared to last December and is the fastest year-over-year price growth since May 2022. Price appreciation was widespread, with prices up for all housing types and in all jurisdictions with the exception of Philadelphia County.
• There were 3,754 new pending sales in the Philadelphia metro area, which was 4.0% lower than a year prior. Monthly pending sales were at their lowest level since April 2020 when the pandemic locked down the housing market in Pennsylvania.
• There were fewer sales simply because there was not enough inventory. In December, a total of 3,582 new listings came onto the market throughout the Philadelphia metro area. New listing activity is down 8.7% compared to December 2022, and fell 32.1% from November.

Baltimore:
Slow Sales Activity to End the Year
But few new listings keep prices rising in December

• There was a total of 1,998 new pending sales across the region, which was 1.0% lower than a year ago and down 16.1% from November. This is the lowest level of pending sales activity since 2012.
• The median sale price in December was $355,000 which was up 4.4% across all housing types. Prices rose fastest for single-family detached homes, up 7.4% year-over-year.
• Slower sales in December reflects the lack of inventory available. There were 1,703 new listings in December, which is down 20.2% from a year ago and is the fewest number of monthly new listings in more than two decades.

Washington, D.C.:
A Surprisingly Strong Market in December 
Median sale price rose 8.1%, fastest growth since spring 2022

• While home sales activity fell seasonally in December, prices were up strongly in the Washington, D.C. metro area. The median home price was $554,950, which was up by 8.1%. Home prices were up strongly across housing types, and prices rose in all local markets except the District of Columbia.
• There were 2,678 new pending sales, which was 1.1% lower than a year prior. Monthly pending sales were at their lowest level since 2008.
• Slower sales in December reflects the fact that there are few fresh new listings coming onto the market. In December, a total of 2,217 new listings came onto the market throughout the Washington, D.C. metro area. New listings are at their lowest levels in more than two decades.

The full Mid-Atlantic and  market metro area reports are available at BrightMLS.com/MarketInsights.

About Bright MLS
Bright MLS was founded in 2016 as a collaboration between 43 visionary associations and two of the nation’s most prominent MLSs to transform what an MLS is and what it does, so real estate pros and the people they serve can thrive today and into our data-driven future through an open, clear and competitive housing market for all. Bright is proud to be the source of truth for comprehensive real estate data in the Mid-Atlantic, with market intelligence currently covering six states (Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia) and the District of Columbia. Bright MLS’s innovative tool library—both created and curated—provides services and award-winning support to well over 100K real estate professionals, enabling their delivery on the promise of home to over half a million home buyers and sellers monthly. Learn more at BrightMLS.com.

SOURCE Bright MLS