#United States #Housing Market #Real Estate #North Bethesda #Bright MLS

December 2024 Housing Report: A Year-End Surge in Sales

As 2024 came to a close, the housing market across the Bright MLS service area observed a remarkable uptick in buyer activity, culminating in 17,593 closed sales for December. This figure marks a significant 14.4% increase compared to December 2023, illustrating a resilient buyer demand even in a challenging economic climate.

Despite the increase in sales, the number of sellers entering the market hit record lows. December 2024 recorded just 11,531 new listings, reflecting a 2.1% decline from the previous year and the slowest pace of listing activity seen in the last 20 years. This scarcity of new inventory has contributed to the ongoing competitive nature of the housing market, making it a challenging environment for potential buyers.

The median sold price in the Bright MLS region also saw an increase, reaching $405,000, which represents a 6.6% gain from December 2023. As buyers navigate this increasingly competitive market, they are expected to encounter slightly lower mortgage rates and more available options in the months ahead, as current homeowners begin to reassess their living situations.

Dr. Lisa Sturtevant, Chief Economist at Bright MLS, noted how buyers have adjusted their expectations in light of prevailing mortgage rates. With rates on a 30-year fixed mortgage averaging 6.75% at the end of the year, buyers are learning to accept what they may have once deemed unfavorable conditions as normal. After a year where rates exceeded 7% and approached almost 8%, even a mid-6% rate now seems appealing.

Regional Highlights

Philadelphia

The Philadelphia metro area demonstrated robust performance with 5,110 home sales in December, a 9.0% increase year-over-year. The median sold price in the area witnessed a 5.7% increase, reflecting a slower pace of home price appreciation than previously observed. However, 3,485 new listings in December represented a record low for over two decades.

Baltimore

In the Baltimore metro area, closed sales rose by 12.3%, totaling 2,518 transactions. The median price increased to $385,000, which is notable as the highest rise since March 2024. Similar to Philadelphia, new listings in Baltimore dropped to 1,617, marking an acute inventory shortage.

Washington, D.C.

The Washington D.C. metro area reported a staggering 25.9% increase in home sales, totaling 3,858 sales. The median price here reached $590,000, with single-family homes appreciating at a faster rate than townhomes and condos. Again, 2,126 new listings came onto the market, hitting the lowest mark in two decades.

Looking Ahead to 2025

As we turn the page into 2025, the market anticipates some loosening of inventory constraints as changing family dynamics and financial situations compel homeowners to sell, despite potentially higher interest rates on new mortgages. Among those likely to list their homes in 2025 are younger individuals in their 30s and 40s, driven by reasons such as family changes or job relocations.

While inventory challenges persist, early projections suggest moderating mortgage rates into the mid-6s later in the year could be the catalyst needed to energize the market further. Although this transition may not result in a drastic dip in rates, even slight reductions could rekindle buyer interest, leading to a more balanced market.

For continuous updates and detailed insights about the Mid-Atlantic housing market, visit BrightMLS.com/MarketInsights.

About Bright MLS

Founded in 2016, Bright MLS functions as a collaborative platform that streamlines real estate data across the Mid-Atlantic region. Serving over 100,000 real estate professionals, Bright MLS provides valuable market insights and data-driven resources designed to foster a competitive, transparent housing market for all.