Bright MLS April 2023 Mid-Atlantic Market Report
The housing market in the Mid-Atlantic region is currently facing a less certain future due to elevated mortgage rates and an economy that is slowing down. These challenges have resulted in a slower spring home buying season than normal, as per the Bright MLS April Market Report released today.
Although there has been an increase in pending home sales between March and April, the month-to-month increase has been lower than what is typically seen during a busy spring season characterized by heightened buying and listing activity. Home inventory is now critically low, and homes are selling at a fast rate. Home shoppers in the region are only seeing one-third of the number of houses for sale that were available back in 2019, with just 1.32 months of supply across the board.
The number of home showings experienced a significant decline of 23% year-over-year, marking the 14th consecutive month that it has fallen below the previous year's levels. In addition, new listings dropped by a staggering 35.6% in the region, which suggested that sellers were not motivated to sell their homes due to the uncertainty in the spring market. This trend is expected to continue into the summer season.
According to Bright MLS Chief Economist Dr. Lisa Sturtevant, the Mid-Atlantic housing market is not performing as it normally would during spring. The higher mortgage rates and economic uncertainty are affecting the overall market, but buyers who need to move are still seeing quick home sales with intense competition for limited homes available. Despite the market slowdown, there are still opportunities for those looking to buy or sell.
Key Market Takeaways
The Baltimore metro area housing market is currently experiencing a suburban boom while the city market struggles. The median home price remains steady at $360,000 for the metro area, but the city market has seen a 3.2% decrease in home prices. Meanwhile, suburban areas are seeing rising prices and a surge in new pending sales, particularly Howard County with a 14.3% increase. Although overall closed and pending sales are lower than last year, available inventory is selling rapidly with half of all homes in the area being sold within a week of listing. Despite more active listings, inventory levels remain low, with only 1.16 months of supply and a 40% drop from April 2019's levels.
The Washington, D.C. housing market, typically shielded from market fluctuations, has experienced a significant slowdown with a decline in both closed and pending sales. The median home price in the area has dropped to $586,000 for the second consecutive month. Even with a nearly 30% increase in median home price since the onset of the pandemic, both buyers and sellers have held back in April. Active listings saw a decrease of 4.1% due to the lack of sellers. This lack of inventory has intensified the competition among buyers, resulting in a median days on the market of only 7. Additionally, the region now only has 1.16 months of supply, less than half of what it was in April of 2019.
