Bright MLS May 2024 Housing Report: Another record price makes a home purchase out of reach for some buyers

As buyers sidelined, inventory grows for those who remain

• The Mid-Atlantic median home price gained further ground in May, hitting $422,535, a new record for the region. Price growth is expected again in June, which typically marks the peak median price each year.
• Climbing prices and elevated mortgage rates pose affordability challenges for prospective buyers. Some, particularly those in high-cost markets, will be forced to move to the sidelines.
• Buyers able to continue their search have seen more options. Inventory is up across all areas within the Mid-Atlantic and overall supply at the end of May was 20.7% higher than last year.
• Despite gains in supply, pressure remains with the median days on market at eight in May, only one day slower than a year ago.

NORTH BETHESDA, Md., June 11, 2024 /PRNewswire/ -- 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.

"While we anticipated price growth in 2024, the new record highs also bring challenges," said Dr. Lisa Sturtevant, Bright MLS Chief Economist. "Buyers on the fence of affordability must move to the sidelines. However, for those who can persist, more choices are coming online, and market conditions should ease in the second half of the year."

Inventory has improved throughout the year, and active listing counts each month have been higher in 2024 than 2023 since February. As of the end of May, Mid-Atlantic shoppers had 20.7% more choices than those in the market last year.

The growth in supply has only moved the needle slightly in terms of market pace. Homes took slightly longer to sell in May. Half the homes sold in May 2024 were on the market eight days or fewer. A year ago, half the homes sold in a week or less.

Despite the challenges, buyers have persisted. Closed sales improved in May (+1.0%). Year-to-date new pending sales and closed sales are only slightly below last year, down -0.8% and -0.3%, respectively.

May Mid-Atlantic Housing Market by Region

Philadelphia:
Another record price, though buyers could gain leverage as supply improves

• At $375,000, Philadelphia's median price reached a new record in May 2024. Prices increased 8.7%, with the strongest growth in the region's suburbs.
• Some prospective buyers may have to forgo a purchase as prices hit new heights. While closed sales and new pending sales were higher in May, year-to-date sales activity is slightly below last year.
• Inventory stayed ahead of 2023 for the second month in a row. Still, supply is roughly 40% of pre-pandemic levels. More new listings in the summer would give buyers more options and possible leverage on price.

Baltimore:
Even as sales activity slows, home prices hit a new record high

• In May 2024, closed sales across the Baltimore metro area were 2.4% lower than May 2023. Through the first five months of the year, buy-side activity has lagged for both contracts (-2.9%) and closed sales (-2.1%).
• New listings activity increased in May (+4.7%) and was 2.3% higher year-to-date. The balance of what is moving off the market compared to coming on has boosted supply in 2024. There were 4,402 active listings at the end of May across the Baltimore metro, up 20.9% compared to a year ago.
• Slower demand and additional supply haven't impacted prices yet. The median sold price was $400,000, the highest recorded for the area.

Washington, D.C.:
Prospective buyers could be sidelined as prices tie record high in May

• The median price held steady from April to May in the D.C. metro at $640,000. Compared to last year, the median price increased 6.7%.
• The strength in price and elevated mortgage rates are keeping some buyers out of the market. Both new pending sales and closed sales are slightly below last year in May and year-to-date.
• Inventory has improved for buyers still in the market, up 32.0% from a year ago. However, tight competition meant that half the homes sold in May 2024 were on the market six days or less, similar to conditions in May 2023.

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.

SOURCE Bright MLS