Bright MLS October 2024 Housing Report: With an October Boost, Sales Surpass Last Year's Level

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Nov 11, 2024, 10:00 ET

Falling mortgage rates and more inventory brought out the buyers last month

Home sales activity was up briskly in the Mid-Atlantic, with the overall number of closed sales climbing 8.0% compared to September and up by 11.4% compared to a year ago.
Sales are now tracking above last year's historic lows. Through October, sales activity is up 1.2% compared to 2023.
Inventory in the Bright MLS service area has increased for nine consecutive months, with the number of active listings up 14.0% compared to a year ago. Supply is still tight in many local markets. Overall, there is just 2.14 months of supply across the Bright MLS service area.
Home prices continue to rise strongly across the Bright MLS service area. The overall median sold price in October was $410,000, unchanged from September and up 7.6% compared to a year ago. Home prices historically fall between September and October, but strong demand has kept pressure on prices.

NORTH BETHESDA, Md., Nov. 11, 2024 /PRNewswire/ -- As mortgage rates fell at the end of the summer, there were more buyers making offers on homes which led to an uptick in closed sales in October. Rates have been on the rise since mid-September which could mean we will see home buyers pull back some in the fourth quarter. Overall, the number of new pending contracts across the Bright MLS service area was up 8.6% compared to last October; however, pending sales activity declined between September and October.

"Lower rates brought more buyers into the market this fall, but it was a short window," said Dr. Lisa Sturtevant, Bright MLS Chief Economist. "Rates have been rising and likely will be volatile through the end of the year. Some buyers and sellers may decide to wait until 2025 when there should be more rate stability."

In addition to falling rates, more inventory has also been a factor in increased sales activity. Inventory has been increasing for nine consecutive months in the Bright MLS service area. At the end of October, there were 39,226 total active listings, which is up 14.0% compared to a year ago. However, in all regional markets across the Bright MLS service area, inventory is still far below what it was prior to the pandemic.

While home prices tend to fall seasonally in October, this year is an exception, as strong buyer activity kept pressure on prices. The median sold price in October in the Bright MLS service area was $410,000, unchanged from last month, and an increase of 7.6% over last September.

While mortgage rates are likely to be volatile over the coming weeks, we should see rates start to come down through the end of the year and into next year. There is a lot of pent-up demand in the market but the chances of that demand being unleashed in the final two months of the year depends on whether buyers are ready to make their move or think that their options will be better in 2025.

October 2024 Mid-Atlantic Housing Market by Region

Philadelphia:
Philadelphia sales inch above last year with October boost in activity.

The number of closed sales rose 10.3% in October 2024 compared to last year. Sales for the year as a whole are up 0.2%.
Supply in the metro has been higher than last year for seven consecutive months. However, growth in the number of new listings has been modest in recent months, with new listings up just 0.8% in October 2024.
Prices continue to increase strongly. The October median price was $380,000, up 8.6% year-over-year.
The Philadelphia metro is on track to have slightly more sales in 2024 than 2023. Activity in 2025 will rely on continued new listings which have outpaced transactions and added more supply to the market. Buyer and sellers will also be watching the volatility in mortgage rates to determine when to get into the market.

Baltimore:
Sales activity turned a corner in October with promise for November.

In October, closed sales jumped 12.4% year-over-year. Year-to-date 2024 sales are now tracking just 0.8% below last year, closing the year-to-date gap in transactions to 0.8%.
Pending sales in the metro area point to more gains in November. In October 2024 there were 12.9% more new pending sales than last year.
Strong demand in the Baltimore metro continues to put upward pressure on prices. The median price of $390,000 was 5.7% higher than October 2023.
Fourth quarter sales activity could push overall 2024 sales in the Baltimore metro area up above last year's total. However, uncertainty and reversing mortgage rate movement could impact buyers and sellers in the final months of the year.

Washington, D.C.:
October surprises with a big bump in home sales in the Washington D.C. metro area.

There were 4,207 home sales in October across the Washington D.C. metro area, a significant increase both from September and from a year ago.
While home prices are down from the record highs hit this summer, prices continue to escalate across the region. The median sold price in the Washington D.C. metro area was $600,000, up 5.6% compared to a year ago and rising 0.2% compared to September.
More inventory has been a welcome change for buyers in the D.C. area market. The number of listings available for sale at the end of October was 15.5% higher than a year ago, and supply has risen for nine consecutive months.
Volatility in mortgage rates through the end of the year could cause some prospective buyers and sellers in the Washington D.C. region to pause, waiting for more stability in 2025.

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