July 2024 Market Insights: Navigating the Mid-Atlantic
Real Estate Landscape
Insights from Michael Severns
As of the Week Ending July 14, 2024
The latest data from the Mid-Atlantic real estate market reveals dynamic shifts that are pivotal for buyers, sellers, and investors. Analyzing these trends can help stakeholders make informed decisions in a fluctuating environment. Here’s a deep dive into the critical metrics and what they mean for you
Surge in New Listings
The Mid-Atlantic region saw a significant surge in new listings, with 6,421 properties coming onto the market. This 36% increase from the previous week and an 11.6% rise compared to the same week last year indicates a growing supply. However, despite this influx, inventory remains tight in many local markets.
For buyers, this increase presents more options to choose from. It’s an opportune moment to explore new properties, especially since more listings often mean less competition and potentially better deals.
For sellers, the surge in listings could mean more competition. It’s essential to price your property competitively and ensure it stands out with effective marketing strategies.
Stagnant New Contracts
Despite the rise in new listings, new purchase contracts only reached 5,892, showing a lack of proportional increase with the supply. High prices and mortgage rates hovering around 7% are creating affordability challenges for many prospective buyers.
Investors should note this discrepancy as it suggests a cooling in buyer enthusiasm due to economic constraints. This could translate into better negotiation opportunities for investment properties as sellers become more motivated to close deals.
Extended Time to Contract
The median time to contract has extended to 21 days, up by two days from the previous week and year. This is the longest median time since before 2020, indicating a slower market pace.
For buyers, this extended time can provide more breathing room to make decisions without the pressure of quick turnarounds.
For sellers, this slower pace underscores the importance of setting realistic expectations about how long it might take to sell a property and preparing for potentially extended marketing periods.
Price Trends and Listing Adjustments
The median list price across the region is $424,900, a 6.2% increase from last year and a slight 1.2% uptick from the previous week. Active listings have increased by 24.5%, with 9.6% of these listings experiencing price decreases.
Sellers may need to consider pricing strategies carefully, as the increase in active listings and price adjustments indicate that buyers are becoming more price-sensitive.
For buyers and investors, the price adjustments could signal opportunities to purchase properties at reduced rates, especially as sellers become more willing to negotiate to close deals.
Regional Highlights
Philadelphia Metro: The area saw a 62.4% increase in new listings and a 10.7% rise in new purchase contracts, with the median list price steady at $375,000.
Baltimore Metro: Experienced a 12.8% increase in new listings and a 7.5% rise in active listings. The median list price here increased by 6.4% to $399,000.
Washington, D.C. Metro: New listings jumped by 44.2%, but new purchase contracts slightly declined. The median list price rose by 4.2% to $619,900.
Strategic Takeaways
Buyers should leverage the increased inventory to find better deals and negotiate favorable terms, particularly in markets with longer times to contract and price decreases.
Sellers need to focus on competitive pricing and robust marketing strategies to stand out in a more crowded market.
Investors should watch for opportunities arising from price adjustments and motivated sellers, especially in high inventory areas like the Baltimore and Washington, D.C. metros.
The current market dynamics in the Mid-Atlantic region highlight the importance of staying informed and agile. By understanding these trends, all stakeholders can better navigate the evolving real estate landscape.
Common Questions from Buyers and Sellers
I’ve heard the market is really slowing down. Is that true?
The national housing market is slower than it usually is this time of year, but it varies by location. Places like Florida have cooled off quickly, and others like the Midwest are heating up.
Is anything changing this month due to the NAR settlement?
In March, the National Association of Realtors agreed in a legal settlement to change how real estate agent commissions are advertised and require the use of buyer agreements. These changes were originally supposed to take effect this month, but have been pushed back to August 17.
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Keywords: seller's market, home buyers, real estate strategies, competitive offers, 2024 housing market, home buying tips, real estate trends, mortgage pre-approval, bidding wars, negotiation tactics, real estate agents.
