Mid-Atlantic Market Key Findings
Mid-Atlantic Housing Market Has Bottomed Out Still a Risk of More Price Drops in Some Local Markets
The housing market appears to have bottomed out at the end of 2022, as buyer activity increased in January. Across the Mid- Atlantic, pending sales and showing activity both increased in January compared to December.
Buyers who had been on the sidelines were eager to return to the market as rates dropped in January to their lowest levels since September.
Sellers are returning in some markets, as well. Overall, new listings in the Mid-Atlantic jumped in January compared to December, but regionwide the number of January new listings is still lower than it has been since 2005, and there is still not enough inventory to meet demand in most markets.
There is significant variation in housing markets across the region. Inventory is expanding faster in smaller markets, such as the Maryland-West Virginia Panhandle and Southern Maryland regions. Some of these smaller regional markets are also seeing prices decline year-over-year, which reflects still-cool demand and growing inventory.
Market Outlook
Overall, the Mid-Atlantic housing market is poised for a rebound as we head into the spring market. Many buyers who had been sidelined during the fall are ready to begin their home search again. Many listings that had been taken off the market in November and December came back on in January.
The housing market rebound comes as both buyers and sellers adjust to the “new normal,” which will include mortgage rates around 6%, longer transaction times, and more negotiations between buyers and sellers. However, there will be a lot of variation across local markets.Second home and vacation markets could see prices fall further. Suburban markets in the region’s major metro areas are well positioned for a strong recovery.
Information provided by BrightMLS.
View the latest update with Trent Riggs from Main Street Home Loans: HERE