Economist highlights that the market now offers more options than last year
The Mid-Atlantic housing market is showing signs of stabilization, according to Bright MLS’s July 2024 Housing Report. The report highlights a modest shift towards a more balanced market as buyer competition remains strong, even though inventory levels have risen.
July 2024 marked the first time since April 2020 that the months of supply—a metric indicating how long the current inventory would last without new listings—reached two months. Active listings have now increased for six consecutive months, with a year-over-year inventory surge of 24.7%.
Despite this growth, homes are still selling quickly. The median days on market for July was nine days, only slightly longer than the eight-day median in July 2023.
Home prices remain elevated, with the median sold price in the Bright MLS service area rising 5.0% year-over-year to $420,000 in July. Although there was a typical seasonal price dip between June and July, prices are still higher than they were a year ago.
“Improving inventory across the Mid-Atlantic means homebuyers in today’s market have more options than last year,” noted Bright MLS chief economist Dr. Lisa Sturtevant. “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.”
Closed sales in July rose by 11.8%, yet the year-to-date increase remains marginal at 0.2% compared to 2023. The report suggests that the housing market may see more activity in the fall as mortgage rates are expected to decline.
Buyer demand remains strong
The Philadelphia region experienced a 17.9% increase in active listings by the end of July, particularly in the suburbs. Despite this rise in inventory, the market remains competitive, with half of all homes sold in July going under contract in 10 days or less. The median sold price increased by 7.0% year-over-year. Although July’s closed sales were up 13.1%, year-to-date transactions are down 0.9%.
Home sales in Baltimore increased by 7.9% in July year-over-year, though year-to-date sales remain below 2023 levels. The median sold price in July reached $403,000, a 6.1% increase from last year. Inventory continues to grow, with a 30.2% increase in active listings compared to July 2023.
Active listings in the D.C. metro area increased by 28.1% from last year, driven largely by a rebound in condo inventory. However, single-family home inventory remains tight. The median sold price eased to $625,000 in July, still 5.9% higher than a year ago.
As the market edges towards balance, affordability remains a critical issue. High home prices and mortgage rates above 6% continue to challenge buyers, especially first-time buyers, even as rates are expected to decline this fall.
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