Busy Year-End Home Sales Boost Mid-Atlantic Markets
December Housing Report Highlights Buyer Activity
The latest analysis reveals a surge in home sales activity as buyers rushed to finalize their purchases before the year wraps up. In the Bright MLS service area, December saw a total of 17,593 closed sales, marking a 14.4% increase compared to December of the previous year. Such a spike indicates a strong market demand despite the ongoing challenges sellers face.
Tight Inventory Continues to Challenge Buyers
Inventory levels remain a concern, with just 11,531 new listings hitting the market in December, down 2.1% from a year ago. This slowdown marks the lowest pace of new listings in two decades, emphasizing the competitive nature of the current housing market.
The Rise in Home Prices
As buyer interest increases, home prices are on an upward trajectory. The median sold price in December reached $405,000, which is a significant 6.6% rise compared to the same time last year. This consistent increase in prices highlights the ongoing challenges buyers face in securing affordable homes.
Market Conditions Heading into 2025
Despite higher mortgage rates, the housing market remains competitive. The average rate for 30-year fixed mortgages hovered around 6.75% during November and December, but this figure is still preferable compared to rates above 7% from the past year. Buyers have adapted their expectations as they embrace the current economic climate.
Notable Regional Trends in the Mid-Atlantic
As 2024 draws to a close, various metro areas within the Mid-Atlantic region experienced notable changes:
Philadelphia Housing Metrics
In Philadelphia, December brought about 5,110 home sales, a 9.0% increase year-over-year. The median sold price saw a 5.7% increase, indicating steady growth in this competitive market, although the number of new listings fell to its lowest point in over 20 years.
Baltimore's Market Resilience
Baltimore recorded 2,518 closed sales in December, up 12.3% from the previous year. The median price rose to $385,000, demonstrating the area's ability to withstand high mortgage rates while maintaining sales momentum.
Washington D.C. Market Insights
In Washington D.C., the market experienced a remarkable 25.9% surge in sales, totaling 3,858 transactions. The median price hit $590,000 as buyers competed for properties in a landscape characterized by constrained listings.
Outlook for 2025: Adjusting to New Norms
Looking ahead, the inventory bottleneck is expected to ease as changing family dynamics drive homeowners to list their properties. A recent survey indicates that younger homeowners in their 30s and 40s are most likely to sell in 2025, primarily due to life changes. Additionally, mortgage rates are predicted to decrease slightly, which may entice more buyers into the market as they adjust to the prevailing conditions.
Frequently Asked Questions
What year showed significant growth in closed home sales?
Closed home sales in December 2024 saw a 14.4% increase compared to December 2023.
How are home prices trending in the Mid-Atlantic region?
Home prices continue to rise, with a median sold price of $405,000 in December, up 6.6% from the previous year.
What factors are influencing the tight inventory?
The slow pace of new listings and 'rate lock' phenomena are key factors contributing to the tight inventory.
How are mortgage rates affecting buyers?
Despite higher mortgage rates averaging around 6.75%, buyers have adjusted expectations, viewing rates in the mid-6's favorably compared to the previous year's highs.
What can we anticipate for the housing market in 2025?
In 2025, we can expect an increase in inventory as more homeowners are likely to sell, along with slightly lower mortgage rates, improving market conditions for buyers.
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