Bright MLS August 2024 Housing Report: Changing Weather Brings Changing Market Conditions in the Mid-Atlantic

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Sep 11, 2024, 10:48 ET

Buyers finding lower mortgage rates, more inventory

More inventory has given buyers fresh options and more time to decide. In August, the median days on market was 11 days, up from eight days a year ago. This is the slowest pace in the Mid-Atlantic market since February.
Sales have been tracking close to 2023 levels. There were 20,456 total home sales across the Mid-Atlantic, down 0.7 percent compared to last August. Year-to-date, the number of home sales transactions is almost identical to 2023.
The number of new pending sales is higher than last year. There were 20,121 new pending contracts last month, which is 1.1 percent higher than last year. Sales trends differ across local markets with weaker pending sales in the region's major metros and stronger activity in smaller and more affordable markets.
Prices continue to rise in most local markets. Regionwide, the median sold price in the Mid-Atlantic in August was $418,000, which is a 4.2% increase over a year ago.

NORTH BETHESDA, Md., Sept. 11, 2024 /PRNewswire/ -- Declining mortgage rates and more inventory are making the market slightly less challenging for homebuyers in the Mid-Atlantic.

It has been a very competitive market over the past few years, though there are signs that the market may be easing. Buyers have more room to negotiate and ask for concessions. Buyers are also taking longer to put an offer on a home.

More inventory is providing more options for home buyers. At the end of August, there was a total of 37,340 active listings on the market. Inventory has increased for seven consecutive months, with the number of active listings up 21.4% year-over-year. Despite the recent increases, supply is still low by historical standards. There is just 2.06 months of supply regionwide, and overall inventory is still less than 60% of what it was in 2019.

"Homebuyers are taking advantage of more inventory to be choosier and to take more time deciding on a home," said Dr. Lisa Sturtevant, Bright MLS Chief Economist. "However, the market is still competitive and, depending on the price point and location they are looking in, buyers still need to be prepared to act quickly."

Sales activity was stronger in the Mid-Atlantic region's smaller markets, while sales were cooler in the big metro areas. Affordability is a key constraint for some buyers. The median sold price in the Bright MLS service area in August 2024 was $418,000, up 4.2% from a year ago.

Buyers will have more leverage in the market this fall as inventory continues to expand. Mortgage rates are expected to come down, but the slight declines in rates will not offset high home prices. Sellers will have to be prepared to negotiate on price, as well as consider buyer requests for contingencies and concessions.

August 2024 Mid-Atlantic Housing Market by Region

Philadelphia:
Philadelphia area housing market tepid as buyers wait for mortgage rates to fall further

In August, there were 6,102 total home sales across the Philadelphia metro area, down 0.8% compared to last August. The number of new pending sales was also down slightly compared to a year ago.
With more inventory to choose from, buyers are taking more time to submit an offer. The median days on market in August was 11 days, which was two days slower than a year ago and the slowest pace since March.
In August, the median sold price in the Philadelphia metro area was $395,308, up 6.8% year-over-year. Prices continued to rise in most local markets across the region.
While the number of new listings in the Philadelphia metro area was down compared to a year ago, overall inventory was up by 16.9% over last year because of slower new contract activity.

Baltimore:
Sales in the Baltimore metro are tracking below last year's level

There were 2,806 total home sales in August in the region, down 3.3% compared to last August. Year-to-date sales are tracking two percent lower than a year ago.
Listing activity has also slowed, with the number of new listings in the region down one percent compared to a year ago. The pullback in new listings was driven by fewer listings in Baltimore County and Baltimore City.
Even with fewer new listings, inventory continues to climb because fewer buyers are taking homes off the market. Overall, active listings in the Baltimore region is up 21.9% year-over-year.
The median sold price was $395,000 in August, up 2.6% over last year. This is the slowest home price growth in the region since May 2023. Prices were up in all local markets with the exception of Carroll County.

Washington, D.C.:
Slowest August sales since 2008 in the Washington DC metro area

There were 4,351 sales across the DC metro area in August, which was 5.1% lower than last year and the lowest August sales total in 16 years. Year-to-date, sales in the Washington DC region are running two percent below 2023.
In the Washington D.C. region, the median price in August was $612,000, up 4.6% year-over-year. Year-to-date home prices have risen 6.1% in the metro area.
Buyers who remain in the market are able to take a little more time. The median days on market was 10 in August, up from eight days in July and in August 2023.
Inventory has increased for seven months in a row, with the number of active listings up 25.5% at the end of August. New listings were down 1.2% which means inventory growth was driven by slower sales activity.

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 homebuyers and sellers monthly. Learn more at BrightMLS.com.

SOURCE Bright MLS