Bright MLS January 2024 Housing Report: 2024 Kicks off With Higher Home Prices in the Mid-Atlantic

Closed sales are higher than 2023, though inventory remains low

• The median sale price in the Bright MLS service area increased by 5.7% in January. Prices in the Mid-Atlantic have been rising for 143 consecutive months (with one exception last April when the median price was flat).
• Falling mortgage rates at the end of last year encouraged more closed sales activity in January compared to last year. The number of closed sales in the Mid-Atlantic was up slightly, though sales were up more strongly in more affordable regions.
• New listing activity continues to be very low. Overall, new listings in the Bright MLS service area were 9.9% lower in January 2024 than what they were in January 2023.
• Active listings have been declining for eight consecutive months. The year-over-year gap has narrowed, down to a 1.7% difference in January.

NORTH BETHESDA, Md., Feb. 12, 2024 /PRNewswire/ -- Overall, January closed sales across the Bright MLS service area were higher than a year ago, suggesting that buyers took advantage of falling rates at the end of last year. However, new pending sales and showing activity was relatively limited. The wintery weather is partially responsible for the lower activity. The other culprit was the Mid-Atlantic's restricted supply which has lingered near historic lows.

Active listings at the end of January 2024 stood at 26,962. The inventory is at a 1.7% deficit compared to a year ago, but the gap has continued to close for the eight consecutive months where it declined year-over-year.

"Demand outpaced supply in 2023 and the trend will continue in 2024," said Dr. Lisa Sturtevant, Bright MLS Chief Economist. "More sellers should be joining the market this year and additional new listings will be a welcome sign for buyers, but it will still be a very competitive market."

While new listings surged seasonally from December, the number of new listings in January was 9.9% lower than last January. However, the outlook is for the market to pick up this spring leading to more inventory, bringing buyers more options.

Mortgage rates are likely to bump around in early 2024 before coming down later this year. The 2024 market will remain competitive, and buyers will still have to act quickly.

January Mid-Atlantic Housing Market by Region

Philadelphia:
No Relief in Prices to Start 2024
Inventory remains limited impacting activity

• In January, home prices were up in all counties, with the metro area median price up 8.3% year-over-year. The median price in the Philadelphia metro area is now 55% higher than it was in January 2019.
• Inventory is still very limited across the region. There were just 8,511 active listings across the region at the end of January, down 6.5% compared to a year ago. There is very little new listing activity, as current homeowners are still sitting on the sidelines, holding onto low mortgage rates.
• Buyers who are in the market need to act quickly. In January, the typical home sold in just 18 days, which is three days faster than a year ago.
• Showing activity is lower than it was last year, but that is not an indication of less demand. Rather, it is an indication of too few homes available for sale.

Baltimore:
Buyers Enticed by January Dropping Rates
But continue to face higher prices and quick market

• Closed sales outpaced last year's level, which reflected more buyers putting in offers at the end of the year. There were 1,728 closed sales in January 2024, 1.6% higher than January 2023.
• In January, the median sold prices was $355,000, up 7.6% from a year ago. Prices were up strongly in all local markets in the metro area.
• Half the homes in January 2024 were off the market in 19 days or fewer. The median days on market is 3 days quicker than last year.
• Overall, there were 3,519 active listings at the end of the month, which is 1.8% lower than a year ago. Inventory is less than half of what it was in 2019. There has been a dearth of new listing activity across the Baltimore area, as current homeowners are staying on the sidelines, holding onto low mortgage rates.

Washington, D.C.:
Buyers Undeterred by High Prices and Elevated Rates
Median price growth starts strong in 2024, up 7.0%

• Closed sales inched above last year, increasing a slight 0.2% compared to January 2023. Despite affordability challenges, there remains a strong desire for homeownership in the Washington, D.C. metro.
• In January, the median sold price in the Washington, D.C. metro was $535,000, rising 7.0% year-over-year. Prices in the region have been rising steadily since last summer and the median price is now 29% higher than it was in January 2019.
• Showing activity and new pending sales were lower in January than they were last year. Elevated rates have tempered some demand yet the major constraint on the Washington D.C. metro area housing market is a lack of inventory.
• There was a total of 4,930 active listings at the end of January, down 4.8% compared to a year ago. New listing activity has been at historically low levels, as current homeowners remain on the sidelines, holding onto their low mortgage rate.

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.

SOURCE Bright MLS