Homeowners may be coming to terms with 6% mortgage interest rates, which could point to a better spring home buying season, at least in the Mid-Atlantic region. That’s according to the January Housing Market Report released by Bright MLS today.
“After record low sales activity at the end of 2022, the Mid-Atlantic housing market rebounded in January. Both pending sales and showing activity increased month over month throughout the region, while new listings showed some signs of life,” the company reported in a press release.
The increased activity shows that the Mid-Atlantic housing market appears to have bottomed out at the end of 2022, however, the housing market remains slower than January 2022. Sales were down 33.4% compared to a year ago, and new listings were 6.5% lower. Transactions are taking longer, with buyers acting more deliberately, but prices are still on the rise. Median days on market rose 10 days to 22, while the median sale price increased 4.5% to $350,000. The Philadelphia metro led the region in price increases, up 4.7%, with Baltimore metro up 3.8%, and D.C. Metro lagging behind, up just 0.2%.
“Buyers who had been on the sidelines are showing eagerness to return to the market as rates dropped to their lowest levels since September, while sellers are starting to return in some markets, pushing new listings up month over month across the region,” said Bright MLS Chief Economist Dr. Lisa Sturtevant. “This is a sign that both buyers and sellers are adjusting to the ‘new normal’ of 6% mortgage rates, longer transaction times and more negotiations between buyers and sellers. Overall, the Mid-Atlantic housing market is poised for a rebound as we head into the spring market.”
Sturtevant noted that there is significant variation in housing markets across the region. Inventory is expanding in smaller markets, such as the Maryland-West Virginia Panhandle and southern Maryland and some markets such as Frederick and Carroll Counties in Maryland, and Camden and Mercer Counties in New Jersey are also seeing price declines year-over-year.
As more workers are returning to the office, housing choices will be evolving. Second home and vacation markets could see further price declines as demand pushes prices higher in closer-in suburban markets of the Washington metro region, where there were higher median sales prices year-over-year in Alexandria City, and Arlington, Fairfax and Montgomery Counties.
Full Mid-Atlantic and Metro area reports are available at BrightMLS.com/MarketInsights.
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