The spring housing market in the Mid-Atlantic region is presenting a paradoxical picture according to Bright MLS's March Housing report. Though mortgage rates are up, putting pressure on buyers’ budgets, homes continue to fly off market shelves with nearly one-third selling for higher than asking price last month! With such high demand and low inventory levels it certainly looks like this season will be an exciting time of year if you're searching for your dream home.
Despite the economic uncertainties, 2023 home sales have been on an upward trend. However, spring housing market activity has slowed down considerably when compared to last year due in part to increasing mortgage rates and limited inventory. Price growth is not as robust as it was pre-pandemic, but high demand still drives competitive purchasing pressures for buyers in many local markets across Mid-Atlantic states - with just over one month of supply available currently! The median sale price stands at approximately $368K (a 0.8% increase from this time last year). This may bode well for a more balanced outlook by late 2023 - though conditions will vary locally depending on individual areas' real estate dynamics.
The Mid-Atlantic housing market is not going as expected. While mortgage rates remain high and inventory remains low, buyers are still competing in a hot market - homes that get listed at realistic prices quickly garner multiple offers! Dr. Lisa Sturtevant, the Bright MLS Chief Economist, noted this “fast paced transactional level” where sellers should anticipate requests such as home inspections or closing cost assistance from prospective buyers, something which wasn't seen last year during the pandemic market.
Baltimore Metro Area: Has home price growth reached its tipping point?
March marked the end of a 53 month-streak during which home prices in Baltimore metro had increased steadily. Prices dipped by 1.5% to $335,000; however, given that some areas experienced significantly more appreciation due to the pandemic housing market, this could be responsible for the slight pullback on median pricing observed across all markets. Inventory remains drastically limited though with only one months’ worth of homes available - an issue impacting much of Mid-Atlantic region and beyond!
With spring underway, the Baltimore region's housing market is experiencing a typical seasonal boost in activity. Despite fewer buyers than usual on the scene, homes are moving quickly - spending an average of just 10 days on the market before being scooped up! Although closed sales and showings remain down compared to last year due to Covid disruptions (24.8%, 27.9% & 30.6%), fierce competition among interested buyers suggests that this dynamic could soon change.
With fewer homes for sale on the market in Baltimore, potential buyers have limited choices. This lack of inventory has kept active listings almost 60% below those from 2019 and pushed home prices lower than normal - but unfortunately not as low as some might hope! Despite affordability posing a challenge to prospective buyers' purchasing power, there is still fierce competition due to this tight housing situation. That said, homeowners can be sure that years of appreciation will continue to serve them well if they decide list their property soon.
Washington DC Metro: The premium associated with more space during the pandemic is now diminishing.
It looks like the home-buying market in D.C. is off to a slow start this spring, with prices falling despite still being 14% higher than three years ago! Closed sales and new pending sales were both down nearly 30%, which suggests that buyers may be taking their time when it comes to purchasing homes here - but you can bet they're keeping an eye on those competitively priced properties out there just waiting for attention!
March was an incredibly fast-moving housing market, with homes selling twice as quickly than the months prior. Buyers were met with limited choice due to inventory being nearly half of what it had been in 2019 spring season, and new listings still far below normal for this time of year. As further evidence that competition is stiff among buyers right now - median days on market fell from 30 down to nine!
Despite lower buyer activity, the Washington Metro housing market remains competitive due to a scarcity of new listings. Unfortunately for hopeful buyers, expensive homes and affordability issues are capping home sales transactions this spring, so even if prices dip further, they won't drop significantly – thanks to limited inventory.
