Bright MLS, which covers the American Mid-Atlantic, found that 2023 ended with their local markets showing sparks of life.
Pending sales, as of December 2023, numbered 13,109 (0.5% higher than a year before), while home prices were up by 8.1% – no housing type or metro area lagged behind in this rise.
The report suggests that falling mortgage rates are the deciding factor here; high mortgage rates have been noted as the defining reason many homeowners are currently reluctant to list their homes. If the rates continue to decline during early 2024, that will likely result in an uptick in market competition and, with it, prices.
As for inventory, the report describes a “two-decade low” of new listings added in December (11,780), for a total of 27,592 active listings by the year’s end. The mix of low(er) rates and low inventory will drive competition even further., the report notes
Dr. Lisa Sturtevant, Bright MLS chief economist, said of the findings, “It was definitely a little bit of a surprise to see prices rise so fast in December. Lower mortgage rates enticed more buyers, but they are still finding a dearth of inventory. Prices will continue to rise until there is more inventory.”
For the full report, click here.
