Across the Mid-Atlantic, markets are suffering from low inventory, prompting prices to rise and buyers to have to dish out more money in order to beat the competition, according to a new report from Bright MLS.
Bright MLS’s Mid-Atlantic Housing Report for June found that the median home price in the region hit a record high at $408,000, 2.3% higher than one year ago. Prices rose in most local markets and for all housing types. Homes are selling quickly, with half of all homes going under contract in a week or less.
As for inventory, the report found that the number of active listings was down 11.4% compared to June 2022, and is 44.3% of the level in 2019. New pending sales declined 17% and closed sales were down 17.6% year-over-year across the region. The lack of inventory is also impacting showings, which were down nearly 16% from a year ago.
Philadelphia metro area:
- Price growth in Philadelphia has continued. The median home price hit a record high of $370,000, up 4.2% from a year ago.
- The largest obstacle in the market is lack of inventory. The number of new listings coming onto the market hit a two-decade low, falling 32.7% from last year. At the end of June, there was just 1.59 months of supply, and the median days on market was eight.
- The hottest markets in June were in the New Jersey suburbs. The median sales price saw double-digit increases in both Mercer County (+10.8% to $410,000) and Burlington County (+12.5% to $370,790.)
- Supply was down in all local markets with the exception of Kent County, Delaware. In both Mercer County and Camden County, New Jersey, as well as Montgomery County, Pennsylvania, the number of active listings on the market was down by more than 30% compared to a year ago.
Baltimore metro area:
- After two consecutive months of flat prices, the median home price was on the rise again, reaching a record $385,000.
- Active listings fell 9.1% year-over-year, and are nearly 38% lower than 2019 levels. Supply is very limited as the number of new listings are at a two-decade low.
- Both pending and closed sales are well below last year, down 17.7% and 18.7%, respectively.
- Baltimore’s suburban housing markets continue to be very resilient, with the strongest price growth in Anne Arundel County (+10.5%). In the City of Baltimore, prices were flat year-over-year. Buyers in the market have to act quickly.
- The pace of home sale transactions remains just as brisk as it was during the height of the pandemic, with the median days on market at six for the metro and only five in Baltimore, Harford and Howard Counties.
Washington, D.C. metro area:
- Low inventory has kept closed sales down 18.5% compared to last year.
- Active listings declined for the third consecutive month, down 20.3% from June 2022. Home shoppers are finding just half of the listings they would have seen back in 2019.
- Home prices rose modestly after three consecutive months of declines. The metro area’s median home price was $600,000 in June.
- Price trends across the region were a mixed bag in June, largely driven by the types of homes sold this month. Prices rose the most in Alexandria City, Virginia, (+15.5%).
- The median price in Washington, D.C., Arlington County, Virginia and Frederick County, Maryland, declined, while prices were basically flat in Loudoun County, Virginia.
- Several local markets saw greater than 30% declines year-over-year in active listings.
- Both Montgomery County and Frederick County, Maryland, have less than one month of supply. Homes are selling very quickly. The fastest-paced market was Fairfax County, Virginia, where the median days on market was five in June.
Major takeaway:
“The housing market in the six-state Mid-Atlantic region continues to defy expectations,” said Dr. Lisa Sturtevant, Bright MLS chief economist. “Strong buyer demand continues to push home prices to new records, while the absence of sellers is becoming even more apparent as new listings slowed to a trickle in June.”
The report also found that one market that offers more choices for buyers, particularly second-home buyers, is the Del/Mar Coastal region, where the number of active listings was up 19%. Prices are still rising, but beach properties are more plentiful than they were a year ago.
“Buying a beach property during the pandemic made more sense for some families since they were not otherwise able to travel and could work and learn remotely for weeks or even months at a time,” added Sturtevant. “Now, that lifestyle isn’t possible for most people. It’s back to just a week or two of vacation during the year.”
For the full report, with additional data of the Mid-Atlantic region, visit BrightMLS.com/MarketInsights.
