07/16/2024
🏡 Housing Market Trends & Market Outlook 🏡
Source: Bright MLS June 2024 Housing Report
📉 Market Overview:
Through the first six months of the year, home sales in the Mid-Atlantic have been slower than last year. However, the second half of the year looks promising as mortgage rates are expected to decrease, potentially boosting home sales activity.
Challenges for Buyers:
High home prices remain a significant hurdle for many would-be buyers. Even though prices may decline from their summer peak levels, they are projected to continue rising year-over-year in most markets during the second half of the year.
June Sales Report:
Home Sales: 20,552 homes were sold in June, marking a 10.4% decrease compared to last June and a 3.2% drop from May.
Mortgage Rates: Rates stuck near 7% have deterred some prospective buyers from entering the market.
Inventory Insights:
Active Listings: Increased for four consecutive months, with inventory up 17.5% compared to last year.
New Listings: Down slightly from a year ago, but the recent influx of fresh listings has surpassed new pending sales, leading to a rise in overall inventory. Despite this, the supply in the Mid-Atlantic is still only 67% of what it was in 2019.
Home Prices:
Home prices continue to rise across much of the region. In June, the median sold price reached $430,000, setting another new record high for the Mid-Atlantic.
Philadelphia:
Another record price, with strong price growth in the city and suburbs
Home prices hit a new record high in June. The median sold price in the Philadelphia metro area hit $400,000 for the first time in June. Home prices were up strongly across all local markets in the metro area.
Overall buyer activity is tracking lower than last year. There were 5,989 home sales across the Philadelphia metro area in June, down 11.3% compared to a year ago. Through the first six months of the year, total home sales are 3.7% lower than 2023.
As mortgage rates fall in the second half of the year, we should see both more buyers and more sellers in the market. Inventory will still be tight across much of the Philadelphia metro area, but there will be a better balance between buyers and sellers.
Baltimore:
Record home prices recorded in Baltimore City as well as in Howard and Baltimore counties
Home prices are at record highs across the Baltimore metro area. In June, the median sold price was $412,500, up 7.1% compared to a year ago. Prices hit new record highs in the city of Baltimore, as well as in Baltimore and Howard counties.
In June, sales were down 10.9% compared to a year ago. Through the first six months of the year, sales are tracking 3.7% below last year’s levels. Mortgage rates near 7% and record high home prices are keeping some would-be buyers out of the market.
Falling rates in the second half of 2024 will bring both more buyers and more sellers into the market. Prices in the Baltimore metro area will continue to rise, but at a slower pace as buyers will begin to have more leverage in many—though not all—local markets in the region.
Washington, D.C.:
Sales lower but prices continue to rise in the Washington D.C. area.
The median sold price regionwide was $640,000 in June, up 6.7% year-over-year. The fastest price growth was in the region’s close-in markets, including the city of Washington, D.C. and Arlington County, VA. Prices are still rising in the more distant suburbs but at a slower pace.
In June, overall sales were down 12.2% compared to a year ago. Through the first six months of the year, total sales are 3.6% lower than in 2023.
Record high home prices and mortgage rates stuck near 7% have kept some homebuyers out of the Washington, D.C. metro area market in the first half of 2024. More inventory coming onto the market will draw in more buyers. While prices will continue to rise, buyers will have more leverage and year-over-year price growth will moderate.
Stay informed about the latest market trends and plan your real estate moves wisely! 🏠📊
