Bright MLS November Housing Report: Mid-Atlantic Market Continues to Defy Expectations

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Dec 12, 2023, 10:00 ET

Home prices up strongly in November

Higher mortgage rates in November did not slow market activity throughout the Mid-Atlantic. There were 15,964 new pending sales last month, which was just 0.7% below November 2022.
Inventory has declined for six consecutive months, and month-end active listings were down 4.6% compared to last November. There were 32,522 total listings on the market at the end of November, which is only half of the inventory that was available back in 2019.
As a result of the low inventory and the surprisingly resilient demand, home prices continue to rise. The region's median home price was up 5.7% in November, the fastest price growth in more than a year.

NORTH BETHESDA, Md., Dec. 12, 2023 /PRNewswire/ -- Even as mortgage rates hit a two-decade high in November, homebuyers remain active throughout the Mid-Atlantic region. The number of closed sales continued to track below last year's levels, with 15,970 total sales throughout the region, down 6.3% from November 2022. However, there were 15,964 new pending sales last month, which is down just 0.7% compared to a year ago.

"Housing demand has remained strong this fall, despite higher rates," said Dr. Lisa Sturtevant, Bright MLS Chief Economist. "More all-cash buyers and buyers who are able to put down big down payments have been an important part of the market this year."

After increasing for three months in a row, inventory fell in November. At the end of the month, there was a total of 32,522 active listings across the Bright MLS service area. Supply was 5.5% lower than it was a year ago. And while there was an uptick in new listings in October, overall the number of new listings coming onto the market fell 22.2% between October and November.

Limited inventory continues to drive price growth. The median sale price in the Mid-Atlantic in November was $380,500, which was up 5.7% year-over-year. Prices remain relatively flat between October and November, with the median down just 0.1% month-to-month.

As 2023 closes out, the overall number of home sale transactions in the Mid-Atlantic is likely to be at its lowest level in more than a decade. However, market activity is expected to increase in 2024 as mortgage rates fall. Declining mortgage rates will increase both the number of sellers and buyers in the market in 2024. Homeowners who have a very low mortgage rate have been reticent to list their home for sale. But family and financial challenges will slowly shift priorities, and more homeowners will list their home for sale as we head through 2024. Lower rates will also bring more buyers off the sidelines.

November Mid-Atlantic Housing Market by Region

Philadelphia:
Philadelphia Housing Market Still Competitive
Despite higher rates, home prices continue to rise

In November, the median home price in the Philadelphia metro area was $355,000, which is up 7.6% compared to a year ago. Prices in the Philadelphia region are now 43% higher than they were in 2019.
There were 10,115 active listings at the end of November, which is down 7.9% compared to a year ago. Supply in the Philadelphia region is less than half of what it was in 2019. The number of new listings is down 5.7% compared to last year, and new listings declined by 21.2% between October and November.
The pace of the market remains quick, with the median days on market at 12 in November, which is a day faster than a year ago.
According to the Bright MLS T3 Home Demand Index (HDI), the Philadelphia metro market remains limited. The HDI in December was 63, two points lower than last month.

Baltimore:
Baltimore Metro Area Market Strong in November
Fastest price growth since May 2022

The median sold price was $369,250, up 8.9% compared to a year ago and an increase of 0.1% between October and November.
Low inventory continues to be the primary driver of price growth in the region. At the end of November, there was a total of 4,306 active listings regionwide, down 1.6% from a year ago and less than half of the inventory available back in 2019.
Homes continue to sell very quickly in the Baltimore metro area, with the median days on market at 11 in November, two days faster than last November.
Market conditions generally slow as the year wraps up. However, the Bright MLS T3 Home Demand Index (HDI) shows demand is more limited in 2023, compared to its reading of 78 in December 2022.

Washington, DC:
Market Strong in the D.C. Metro Area
Prices Up Nearly 6% in November

In November, the median sold price in the Washington, D.C. metro area was $570,000, which was up 5.8% from November 2022. The median price in the region has been rising for six consecutive months.
A lack of inventory continues to be the primary constraint on the market. Active listings fell again this month, down 12.4% compared to a year ago.
The market remains very fast-paced, with the median days on market at 11 in November, which is nearly a week (6 days) faster than last November.
According to the Bright MLS T3 Home Demand Index (HDI), market conditions in the Washington, D.C. metro declined slightly month-over-month, from 58 in November to 56 in December, indicating limited market activity.

The full Mid-Atlantic and new 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