Bright MLS June 2024 Housing Report: Home sales slower in June as affordability is a growing concern

Inventory increases for buyers who remain in the market

Home sales are tracking behind last year's totals as prices hit record highs and mortgage rates remain stuck near 7%. Across the Mid-Atlantic, there were 20,552 home sales in June, which was 10.4% lower than last June. The number of sales also dropped by 3.2% between May and June, counter to typical seasonal trends.
Buyers who remain in the market will find more options to choose from. Active listings have increased for four months in a row, with inventory up 17.5% compared to last year. Inventory is increasing as more sellers get into the market and buyers pull back slightly.
Home prices continue to rise strongly across much of the region. In June, the median sold price was $430,000, another new record high for the Mid-Atlantic. However, prices in some local markets in the Mid-Atlantic have softened, as more supply has come onto the market and more buyers have been priced out.
Mortgage rates will come down later this year, though they will likely remain in the mid-6s. As rates drop, expect both more buyers and sellers to enter the housing market.

NORTH BETHESDA, Md., July 10, 2024 /PRNewswire/ -- Mortgage rates stuck near seven percent and record high home prices have cooled housing market activity in the Mid-Atlantic. However, demand remains strong as buyers wait for better rates and more inventory. In June, there was a total of 20,552 home sales across the Mid-Atlantic, which is down 10.4% compared to last June. Through the first six months of the year, the number of homes sales is 2.2% lower than the first six months of 2023.

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A key reason for slower home sales activity is that some buyers have simply been priced out of the market. The median sold price in June was $430,000, which was a 5.4% increase over last year, and a new record for the Mid-Atlantic.

The Mid-Atlantic housing market had another record in its median sale price in May, reaching $422,535. As mortgage rates remain elevated, buyers aren't experiencing the price relief that some expected in the 2024 market.

"High home prices combined with elevated mortgage rates have made buying a home more challenging, particularly for first-time and moderate-income buyers," said Dr. Lisa Sturtevant, Bright MLS Chief Economist. "Home prices are still rising because of the limited inventory. There is also a pool of buyers in the market who are not as price or interest rate sensitive because they are selling a home and rolling significant equity into the purchase of their next home."

The number of new pending sales was up slightly in June (+0.9% year-over-year), which means that closed sales will probably continue to be relatively weak throughout the rest of the summer. New pending sales is a good indicator of future closed sales as most homes that go under contract in one month close in the following month.

Buyers who remain in the market have more listings to choose from than they did a year ago. There were 35,106 active listings on the market at the end of June across the Mid-Atlantic, a 17.5% increase compared to the end of June 2023. Supply has increased for five consecutive months, bringing some relief to home shoppers. However, the market is still tight with just 1.95 months of supply and inventory that is still just 52% of 2019 levels.

More new listings on the market should bring more home shoppers out, but that has not been the case in all markets. The number of showings across the Mid-Atlantic is still 10.1% lower than it was a year ago. Some buyers are waiting for mortgage rates to improve before they start looking in earnest.

June Mid-Atlantic Housing Market by Region

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.

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.

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