Winds of change occurred in February as active listings at the end of the month finally surpassed their year-ago amount, according to Bright MLS’s February 2024 Housing Report. Inventory was 6.3% above where it was in February 2023, making it the first gain since May 2023.
New listings have also started coming online, according to the report, and February had 10.2% more new listings than last year. However, supply is only 44% of where it was in February 2019.
“More new listings and rising inventory is a welcome sign for Mid-Atlantic buyers,” said Dr. Lisa Sturtevant, Bright MLS’s chief economist. “The 1.54 months of supply indicates there will still be tough competition. Price pressure and a brisk pace will be features of the spring market, especially for detached single-family home buyers where supply is the most depleted.”
The report also found that closed sales increased 0.5% in February compared to a year ago, the second consecutive month of modest increases in sales activity. And even with rates approaching 7% again last month, buyer activity did not decline significantly as new pending sales dropped just 0.2%.
“More activity is likely on the horizon,” the report stated. “Buyers will have more opportunities as additional new listings are added. The direction of mortgage rates will influence how busy the spring market will be.”
The February Mid-Atlantic housing market data by region:
Philadelphia:
- Home prices continued to rise in the Philadelphia metro area, increasing 10.4% compared to a year ago. This is the fastest pace of home price growth since May 2022.
- The speed of transactions has been quick. Half the homes sold in February 2024 were off the market in 20 days or less, which was two days faster than February 2023.
- Supply is a big constraint. Active listings at the end of February were 0.3% above last year. Other markets in the Mid-Atlantic have seen rising inventory, while Philadelphia’s is basically flat.
- Both closed sales and new pending sales trailed behind last year, down 0.4% and 2.1%, respectively. New pending sales were impacted by higher mortgage rates in February.
Baltimore:
- The median sold price was $360,000 in the Baltimore metro area for February 2024. The 9.4% increase was the biggest year-over-year gain since May 2022.
- Price pressure and a brisk market pace are likely to stay around, especially when rates drop and more buyers join the market. Half the homes sold in 16 days or less in February.
- Overall inventory increased 9.9% across the Baltimore region. However, Anne Arundel, Carroll, and Howard counties all had fewer active listings compared to last year.
- Home sales are still tracking behind last year’s levels. New pending sales are lagging as well, down 2.4% year over year. Rising mortgage rates in February is one reason why sales activity was lower than a year ago.
Washington, D.C.:
- Inventory in the Washington, D.C. metro increased for the first time since March 2023 (+5.5%). However, detached single-family home inventory is still on the decline.
- The market is still tight, with only 1.29 months of supply. The region’s suburbs are more supply-constrained than D.C. proper, which has 20.4% more active listings than a year ago.
- Low supply, combined with elevated mortgage rates, has limited transactions. Closed sales were down 2.7% compared to last year. Sales activity is still tracking well below pre-pandemic levels.
- The median sold price rose 4.7% in February. Price growth was widespread, in all markets except the District of Columbia. Single-family homes, which have the most depleted supply, saw the strongest price growth, up 10.7%.
For the full report, visit https://brightmls.com/article/february-2024-market-report.
