New Listings Trickle, Posing Challenges for Buyers
This headline from the Bright MLS June 2023 Market Report just caught my eye!
(North Bethesda, Md.) July 13, 2023 – The Mid-Atlantic housing market seems to have missed the message that higher mortgage rates should stifle demand as buyers scramble to compete for a shrinking pool of listings. The number of available homes for sale in the Mid-Atlantic region has fallen to historic lows and home prices are once again at record highs, according to the Bright MLS Mid-Atlantic June Housing Report released today. Sales continue to trail last year, however, it’s not for lack of buyer interest.
The full Mid-Atlantic and new area reports are available here.
“The housing market in the six-state Mid-Atlantic region continues to defy expectations,” said Dr. Lisa Sturtevant, Bright MLS Chief Economist. “Strong buyer demand continues to push home prices to new records, while the absence of sellers is becoming even more apparent as new listings slowed to a trickle in June.
A lack of inventory is the primary constraint on the Mid-Atlantic market. New pending sales declined 17% and closed sales were down 17.6% year-over-year across the region in June. The lack of inventory also is impacting showings, which were down nearly 16% from a year ago
It is not high prices or elevated mortgage rates that is constraining the Washington area market, but rather low inventory that has kept closed sales down 18.5% compared to last year. Active listings declined for the third consecutive month, down 20.3% from June 2022. This June, home shoppers are finding just half of the listings they would have seen back in 2019. Home prices rose modestly in June after three consecutive months of declines. The metro area’s median home price was $600,000 in June.
Price trends across the region were a mixed bag in June, largely driven by the types of homes sold this month. Prices rose the most in Alexandria City, Va. (+15.5%). The median price in Washington, D.C.; Arlington County, Va., and Frederick County, Md. declined while prices were basically flat in Loudoun County.
Several local markets saw greater than 30% declines year-over-year in active listings. Both Montgomery County and Frederick County, Maryland, have less than one month of supply. Homes are selling very quickly. The fastest-paced market was Fairfax County, Va. where the median days on market was five in June.