Bright MLS July 2024 Housing Report: Mid-Atlantic moving towards a more balanced housing market

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Aug 12, 2024, 10:00 ET

Still a competitive market for buyers despite inventory gains

Inventory has been increasing, creating a little more leverage for Mid-Atlantic buyers. There was two months of supply at the end of July, the first time since April 2020 that months of supply has been at this level. The number of active listings has increased for six months in a row, with inventory up 24.7% year-over-year.
Homes are still selling quickly. Half the homes sold in July were on the market nine days or less. The median days on market is just one day longer than a year ago.
Price appreciation has continued even with additional inventory on the market. Home prices dipped seasonally between June and July; however, the median sold price was up 5.0% year-over-year in July.
Though up strongly in July (+11.8%), closed sales have been flat in 2024 compared to 2023. Year-to-date closed sales are just 0.2% higher than last year. Transactions in fall 2024 should outpace 2023 levels as mortgage rates come down.

NORTH BETHESDA, Md., Aug. 12, 2024 /PRNewswire/ -- The housing market would be described as anything but normal over the past several years. However, there are signs that the market is gradually heading towards more balance across much of the Mid-Atlantic.

New listing activity in 2024 has been stronger than 2023, and overall new listings are up 5.5% year-to-date. The number of new listings is higher than the number of new pending contracts, which is pushing inventory upward. Active listings at the end of July 2024 were 24.7% higher than a year ago, and the months of supply metric, measuring how quickly supply would be depleted if no new homes were added, finally hit two months, the highest level since April 2020.

"Improving inventory across the Mid-Atlantic means homebuyers in today's market have more options than last year," said Dr. Lisa Sturtevant, Bright MLS Chief Economist. "However, affordability is still a challenge for many would-be homebuyers. Mortgage rates are falling, which is a good sign for buyers, but prices are still at near-record highs in many markets. Many buyers, particularly first-time buyers, will continue to be priced out."

The median sold price in the Bright MLS service area in July 2024 was $420,000. The median price has started to drop from its June peak, which is a typical seasonal trend. Nonetheless, the median sold price in July was up 5.0% year-over-year.

The speed of sales has also eased but is still brisk. Half the homes sold in July were off the market in nine days or less. Comparatively, the median days on market in July 2023 was eight days, while homes sold in July 2019 were typically on the market for 18 days.

The expectation for mortgage rates to drop in the fall will encourage both more buyers and more sellers to enter the market. Affordability will be the biggest constraint on the market as mortgage rates remain above 6 percent and home prices remain firm in most local markets.

July Mid-Atlantic Housing Market by Region

Philadelphia:
Shifts in the Philadelphia metro area housing market, with more inventory available in the region's suburbs

The number of active listings at the end of July was up 17.9% across the Philadelphia metro area. This is the fourth month in a row that inventory has climbed, and the biggest gains were seen in the suburbs.
Despite the gains, the Philadelphia metro area has a competitive housing market. Half of all homes that sold in July were on the market for 10 days or less. Home prices continue to rise, with the median sold price in July up 7.0% compared to a year ago.
July had higher closed sales (+13.1%), yet overall transactions year-to-date are still at a slight deficit (-0.9%). Falling mortgage rates this fall will bring both more buyers and more sellers into the market.

Baltimore:
Home sales up in July, but year-to-date sales continue to track below last year's level

Home sales in the Baltimore metro area increased 7.9% year-over-year in July. However, through the first seven months of the year, transactions are still lower than they were in 2023.
Prices peaked in June, dropping slightly in July to $403,000. The median sold price is 6.1% higher in July 2024 than July 2023. Townhome prices rose the fastest of the home types, growing 10.2% year-over-year.
Inventory remains tight, although homebuyers have more options than a year ago. The number of active listings at the end of July 2024 jumped 30.2% compared to July 2023. Months of supply is low, with only 1.84 months, and Howard County has just over one month of supply.

Washington, D.C.:
Condo inventory back to pre-pandemic levels, while the supply of single-family homes remains tight

Active listings were up 28.1% compared to a year ago, the sixth consecutive month of inventory gains. The condo inventory has increased much more quickly, and the condo supply is now back to where it was in 2019.
Home sales in the D.C. metro area were up 10.3% in July compared to a year ago, but year-to-date sales are still tracking below last year (-1.4%).
The median sold price eased from its record high to $625,000 in July. Even as the median dipped seasonally between June and July, the median sold price was up 5.9% from last year. Home prices will remain high and keep some buyers sidelined even as rates drop in the fall.

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