Bright MLS September 2024 Housing Report: Falling Mortgage Rates Bring More Buyers
New pending sales higher while prices continue to rise
- Through September, the number of home sales in the Mid-Atlantic had been tracking at about the same level as last year. However, an uptick in new pending sales suggests that market activity will pick up in the 4th quarter.
- There was a total of 19,945 new pending sales in the Bright MLS service area in September, which is up 10.3% compared to last year. Mortgage rates have declined by more than a percentage point since the spring, which is enticing more buyers into the market.
- Home buyers have seen market conditions ease. The median days on market fell to 13 days, four days slower than the pace last year. Despite the slower pace, market conditions remain competitive for buyers. Before the pandemic, the median days on market in the Bright MLS service area was 25 days.
- Home prices continue to rise in most local markets across the region. In September, the median sold price was $410,000, which was 6.4% higher than a year ago. Prices are declining seasonally, with the median price down 1.9% between August and September.
Conditions are improving for buyers in the Mid-Atlantic. Mortgage rates have fallen, inventory is increasing, and buyers have more time to make a decision. While the market is still competitive, this fall will be a better market than buyers have seen in quite some time.
Mortgage rates fell to a 20-month low in September and are now just above 6%. The drop in mortgage rates means that prospective homebuyers will save around $300 on the monthly payment of the median-priced home in the region. That drop in rates brought more home shoppers in the market this September. The number of home showings is up in many markets and more offers are being made. There were 19.945 new pending sales across the Bright MLS service area, which is up 10.3% compared to a year ago.
“There are many prospective homebuyers who have been waiting for mortgage rates to fall,” said Dr. Lisa Sturtevant, Bright MLS Chief Economist. “The recent drop in rates has motivated both home buyers and home sellers to get into the market, which means that it will likely be a very busy fourth quarter.”
Inventory has been increasing for eight consecutive months in the Bright MLS service area. At the end of September, there were 38,205 total active listings, which is up 16.8% compared to a year ago. Despite the steady increases, overall inventory is still just over half of what it was in 2019.
The low inventory is the primary reason why home prices in the region continue to rise. In the Bright MLS service area, the median sold price in September was $410,000, which is down from the summer peak but is an increase of 6.4% over last September.
Dropping mortgage rates and more supply will continue to drive more buying activity. It will likely be a busy market for the last few months of the year, with 2024 wrapping up stronger than 2023. Affordability challenges remain for some buyers, with prices expected to continue to rise. More affordable markets could see more buyer interest than more expensive regions.
September 2024 Mid-Atlantic Housing Market by Region
Philadelphia:
Lower rates and more inventory could fuel a busy fall market in Philadelphia
- As mortgage rates have come down, more buyers appear ready to get into the market. In September, there were 5,660 new pending sales across the Philadelphia metro area, which was up 5.9% compared to a year ago.
- The region’s housing market is still constrained by low inventory. While the number of active listings has increased for six months in a row, supply is still less than half of what it was in 2019.
- The median sold price in September was $379,900. While home prices are declining seasonally, the median price was still up by 7% compared to a year ago.
- Mortgage rates started falling this summer and reached a 20-month low in September. Declining rates will bring more buyers into the market, which could lead to a busy 4th quarter in the Philadelphia metro area.
Baltimore:
Market activity has been sluggish, but sales should pick up in the 4th quarter
- Year-to-date, home sales are tracking 2.2% lower than last year in the Baltimore metro area. However, in September, the number of new pending sales in the region was up 10.6% compared to last year, suggesting that more buyers are entering the market.
- Inventory has increased in the Baltimore metro area for eight months in a row. At the end of September, there were 4,978 homes available for sale, which was up 18.5% compared to a year ago.
- Home prices in the region continue to rise. The median sold price in September was $397,855, a 4.7% year-over-year increase.
- The biggest constraints across much of the Baltimore region continue to be a lack of inventory and affordability challenges, particularly in the region’s suburban markets.
Washington, D.C.:
Home sales in the Washington DC region are picking up as mortgage rates fall
- While the number of closed sales in September was about the same as it was a year ago, new pending sales surged, climbing 15.7% compared to last year.
- Buyers are taking advantage not only of falling mortgage rates, but also increasing inventory. Supply in the DC metro area has increased for eight months in a row, and the number of active listings at the end of September was up by 18.9% compared to a year ago.
- Home prices in the Washington DC area continue to rise. The median sold price in September was $599,000, which was up 8.9% from a year ago.
- The biggest constraint in the Washington DC metro area is high home prices. Affordability challenges will keep some buyers out of the market, particularly first-time homebuyers. However, more inventory will bring more options and should ease price growth.
The full Mid-Atlantic and market metro area reports are available at BrightMLS.com/MarketInsights.
SOURCE Bright MLS
