Mid-Atlantic Region Continues to Find New Highs

According to a new report from Bright MLS, higher mortgage rates in November did not seem to slow market activity in the Mid-Atlantic states as there were 15,965 new pending sales last month, which was just 0.7% below numbers reported in November 2022. 

Looking at inventory numbers, listings have declined for six consecutive months, and month-end active listings were down 4.6% compared to last year. By the numbers, 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. Due to the low inventory and surprisingly resilient demand, home prices continue to rise. The region's median home price was up 5.7% in November, the fastest growth in over a year. 

Even as mortgage rates hit 20-year highs in November, homebuyer demand remained active throughout the Mid-Atlantic region as the number of closed sales continued to track below last years levels with 15,970 total sales throughout the region, a number which is down 6.3% year-over-year. 

However, there were 15,946 new pending sales last month, which is down just 0.7% compared to last year. 

"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 consecutive months, 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. 

Some of this has been caused by limited inventor which continues to drive price growth skyward. 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. 

Bright MLS predicts that as 2023 closes out, the overall number of home sale transactions in the mid-Atlantic are 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. 

However, 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. 

Click here to view the research in its entirety, including city-by-city data from popular Mid-Atlantic metropolitan areas.