However, a record low number of sellers listed their home in December
- Across the Bright MLS service area, there were 17,593 closed sales in December. Sales were 14.4% higher than they were in December 2023. For the year, the region posted 2.5% more sales than the year prior.
- Inventory is still relatively tight across the Bright MLS service area. There were just 11,531 new listings coming onto the market in December, which was 2.1% lower than a year earlier, and is the slowest pace of listing activity in 20 years.
- Home prices continue to rise. The median sold price in December was $405,000, a 6.6% gain from the previous December.
- As we begin 2025, buyers still face a competitive housing market. Over the coming months, however, buyers will find more choices and slightly lower mortgage rates.
NORTH BETHESDA, Md., Jan. 10, 2025 -- Home sales activity surged across most of the Bright MLS service area in December. While transactions are still low by historic standards, the number of closed sales was much higher than in December 2023. Closed sales also increased by 4.2% from November. In December, the number of new pending contracts was also higher, with 2.1% more pending sales in December compared to 2023.
The uptick in buyer interest at the end of 2024 comes even as mortgage rates remained high. In November and December, rates on a 30-year fixed-rate mortgage averaged 6.75%. But at the end of 2024, rates were up to three-quarters of a percentage point lower than they were a year earlier.
"Buyers have re-anchored their expectations and have come to terms with the new normal for rates," said Dr. Lisa Sturtevant, Bright MLS Chief Economist. "Over the past year, rates have been above 7%, and even close to 8%, so buyers now think a rate in the mid-6's is pretty good."
Sellers are still few and far between. December is typically a slow month for new listings, but 2024 was a record-breaker. There were just 11,531 new listings coming onto the market in December, which was 2.1% lower than a year earlier, and is the slowest pace of listing activity in 20 years.
At the end of 2024, there was a total of 30,823 active listings available for sale. While this is an 11.7% increase over 2023, inventory is still far below pre-pandemic levels. One factor is "rate lock"—that is, the fact that current homeowners have a much lower mortgage rate than they could get on a new loan. As a result, homeowners are staying put longer.
Some of the inventory logjam will be loosened in 2025. Changing family and financial circumstances will prompt more homeowners to sell their home, despite having to give up their super-low mortgage rate. In a recent nationwide survey of homeowners conducted by Bright MLS, the group most likely to sell in 2025 is younger homeowners in their 30s and 40s, and the most common reasons for selling are family or job changes.
In addition to more inventory in 2025, mortgage rates will also come down, though not by much. Current projections are for mortgage rates to remain well into the mid-6's in the first part of the year. But because people have started adjusting to the new normal, even a slight decline may be all that is needed to draw buyers into the market in the first quarter of 2025.
December 2024 Mid-Atlantic Housing Market by Region
Philadelphia:
The Philadelphia metro area housing market ends the year with strong sales activity
- There was a total of 5,110 sales in December, a 9.0% increase over the year prior. Overall, 2024 sales in the Philadelphia metro tracked 0.8% higher than 2023.
- The median sold price in the Philadelphia metro area was up 5.7% year-over-year in December. This is the slowest pace of home price appreciation since August 2023.
- There were just 3,485 new listings across the region in December. This is the fewest monthly new listings in more than 20 years.
- Prospective buyers in the Philadelphia area market have faced rising prices, elevated mortgage rates, and low inventory. In 2025, conditions should ease somewhat with more listings and slower price appreciation.
Baltimore:
A December surge pushes annual sales totals above 2023 in the Baltimore metro area
- In December, there were 2,518 closed sales, a 12.3% increase over December 2023 sales. Overall, 2024 sales in the Baltimore region were 1.2% higher than 2023.
- The median sold price in December was $385,000, an 8.5% year-over-year gain and the biggest increase since March 2024.
- There were just 1,617 new listings in December, a 5.0% drop from a year prior, and the lowest level in more than 20 years.
- The Baltimore area housing market has been resilient in the face of elevated mortgage rates and low inventory. In 2025, inventory should increase, and mortgage rates will come down.
Washington, D.C.:
Washington D.C. area buyers rush to close on home purchases at the end of 2024
- There was a total of 3,858 home sales in the Washington D.C. metro area in December, which is a 25.9% surge over December 2023 sales. In 2024, total home sales in the region tracked 2.0% higher than 2023.
- In December, the median sold price was $590,000, a 6.1% year-over-year gain. Prices of single-family detached homes continue to rise faster than either townhome or condo prices.
- In December, there were just 2,126 new listings, which is 4.1% lower than the prior December and is the lowest level of monthly new listings in more than 20 years.
- As we move into 2025, there is significant pent-up demand in the Washington D.C. metro area housing market, but there are also headwinds, including uncertainty around Federal government employment in the region, which will be important to watch in the month ahead.
The full Mid-Atlantic and market metro area reports are available at BrightMLS.com/MarketInsights.
About Bright MLS
Bright MLS was founded in 2016 as a collaboration between 43 visionary associations and two of the nation's most prominent MLSs to transform what an MLS is and what it does, so real estate pros and the people they serve can thrive today and into our data-driven future through an open, clear, and competitive housing market for all. Bright is proud to be the source of truth for comprehensive real estate data in the Mid-Atlantic, with market intelligence currently covering six states (Delaware, Maryland, New Jersey, Pennsylvania, Virginia, West Virginia) and the District of Columbia. Bright MLS's innovative tool library—both created and curated—provides services and award-winning support to well over 100K real estate professionals, enabling their delivery on the promise of home to over half a million homebuyers and sellers monthly. Learn more at BrightMLS.com.
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