Bright MLS August Mid-Atlantic Market Report

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Sep 12, 2022, 10:00 ET

Still A Seller's Market Though Buyers Have More Leverage, Home Prices Rise As Inventory Remains Stubbornly Low

Home sales down 18.4% in light of continued rising mortgage rates and economic uncertainties, and mirroring trends nationally
Median days on market 10 in region, highest since January of 2022
Median home price still up across the region up 5.3%

ROCKVILLE, Md., Sept. 12, 2022 /PRNewswire/ -- Home sales were down 18.4% in the Mid Atlantic, as mortgage rates have continued their upward trend, according to the Bright MLS August Housing Report released today. The median sales price stands at $350,000 across the region, still up 5.3% year-over-year even as sellers are adjusting their price expectations coming off the frantic pace of the pandemic-era market.

"The Mid Atlantic housing market slowdown of 2022 that began earlier this year marches on," said Dr. Lisa Sturtevant, Bright MLS Chief Economist. "While inventory ticked up in July, supply shrank again in August. We have a long way to go to declare a buyers' market in the region, as months of supply still lingers just over a month. However, as we head into the fall market, buyers should expect to find more options and will potentially have more leverage on price, as sellers are readjusting their expectations. Buyers will also find they have more time to make decisions, and will be in the position of asking for home inspections and appraisals, concessions that were virtually unheard of last year, and are signs of balance inching back into the overall market."

Washington Metro Area: Homes Taking Longer to Sell in the Washington Area

According to the Bright MLS T3 Home Demand Index (HDI), buyer demand continues to track lower this summer. The September HDI for the Washington metro area was 101 (Steady), down from 122 a year ago (Moderate) and from 110 a month ago. Buyer demand has tracked lower this month for all housing types in the region, with the biggest month-to-month decline reported for higher price single-family homes.

Home sales activity continues to slow in the Washington metro area, with buyers holding back and homes remaining on the market longer. In August, home sales were down 25.3% compared to last year. Pending sales also continue to decline, which indicates that fall sales will be lower than last year.

After increasing in July, the number of active listings declined in August with fewer sellers listing their properties. The number of new listings in the Washington area was down 26.0% compared to last year, the sixth consecutive month of year-over-year declines in new listings.

While price growth has moderated, prices are still on the rise in most local markets in the Washington area. The regionwide median price was up 3.4% compared to a year ago.

Baltimore Metro Area: Inventory Reverses in the Region as Sellers Hold Back

According to the Bright MLS T3 Home Demand Index (HDI), buyer demand has tracked lower than last year. The September index for the Baltimore metro area was 107 (Steady), down from 129 a year ago (Moderate) and down slightly from last month (115). Demand dipped for all housing types in the Baltimore metro area, with the exception of higher-priced condos.

After increasing for three consecutive months, supply in the Baltimore metro area declined in August compared to a year ago. Sellers have been slow to list their properties amidst uncertain economic conditions and slower buyer traffic.

Low inventory has continued to fuel price growth in the metro area. The median price in the Baltimore metro area was $368,000 in August, which is a 6.7% increase compared to a year ago.

Homes sell quickly in the Baltimore region, but they are remaining on the market longer than they were last year. In August, the median days on market was nine, which is two days longer than both a year ago and a month ago.

Philadelphia Metro Area: Sellers and Buyers Are Both Holding Back

The Bright MLS T3 Home Demand Index (HDI) continues to show buyer demand tracking lower than a year ago. The September HDI for the Philadelphia metro area was 101 (Steady), down from 118 a year ago (Moderate) and a decline from last month's index of 108. The HDI indicates that buyer demand declined this month across all housing types, with the exception of higher-price condos.

The number of home sales in August were down 15.4% compared to last year. Year-to-date, the number of home sales transaction in the region is 11.9% lower than last year and sales are tracking 4.5% lower than 2019 levels.

Inventory spiked in the Philadelphia metro area in July, but there was a turnaround in supply in August, with the number of active listings down 0.2% compared to August 2021.

The number of new listings declined significantly. In August, there was a total of 8,215 new listings that came onto the market, which was 18.7% lower than the number of new listings last August. This is the lowest number of August new listings in the Philadelphia metro area since 2012.

Low inventory has led to continued price growth in the region. The median sales price in the Philadelphia metro area was $350,000 in August, a 7.7% gain from a year ago.

Full Mid-Atlantic and 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. In 2021, Bright subscribers facilitated $141B in real estate transactions through the company's platform. Learn more at Bright MLS.com.

SOURCE Bright MLS