Heading into spring, buyers and sellers appear to be holding back
North Bethesda, Maryland, March 11, 2025 (GLOBE NEWSWIRE) —
- In the Bright MLS service area, there were 12,763 closed sales for February 2025, down 4.3% compared to last year.
- New pending sales point to lower closed sales yr next month. There were 16,020 new pending sales in the region, down 9.1% from a year ago and the lowest February total in more than a decade.
- New listings were 8.0% below last year, the fourth consecutive month of year-over-year declines.
- The median sold price was up 4.4% year-over-year. The pace of home price appreciation has slowed in recent months as more inventory has come onto the market.
As economic uncertainty has increased and consumer confidence has started to waver, buyers and sellers appear to be taking a cautious approach in the first part of 2025. In the Bright MLS service area, the number of closed sales fell, new pending sales are at their lowest level in more than a decade and new listings have declined for the fourth month in a row.
There was a total of 12,763 closed sales in February, a 4.3% drop from February 2024. New contract activity is down by even more with 16,020 new pending contracts last month, a 9.1% drop from a year ago. Last month, buyer activity was very slow, with new contract activity at its lowest level February total since 2012.
Listing activity is also down. A total of 17,805 new listings came onto the market in February, which is 8.0% lower than a year ago. Despite fewer new listings, inventory is climbing. At the end of February, there were 33,045 active listings which was up 18.2% year-over-year.
“Inventory has been steadily increasing in the Bright MLS service area, but we’re seeing more supply primarily because homes are remaining on the market longer, and not necessarily because more homeowners are listing their homes,” according to Lisa Sturtevant, PhD, Chief Economist at Bright MLS. “Listing activity will increase this spring, and lower rates and the pressures of changing family and job circumstances lead more people to sell.”
The median days on market in February was 19 days, up from 16 days last February. Buyers who are in the market have more time to make decisions as we head into the spring market. However, while the time it takes properties to sell has been on the rise, the median days on market is still much lower than pre-pandemic levels in most local markets. In February 2019, the median days on market in the overall Bright MLS service area was 45.
Home price appreciation has slowed as mortgage rates have remained elevated and inventory has started to increase. But as inventory is still constrained by historical standards, prices are still rising. The median sold price for the region was $400,000 in February, a 4.4% year-over-year increase. Condominium prices actually hit a record high last month with an uptick in condo buyer interest.
Inventory constraints and affordability challenges have hindered the housing market in recent years. So far, in 2025, buyers and sellers appear to be holding back as a result of high mortgage rates and economic uncertainty. The market could turn around this spring as mortgage rates come down. However, it is likely that rates will be volatile from week to week, so buyers may need to be prepared to act quickly when they dip. Furthermore, uncertain economic conditions will still be a factor in the spring housing market.
February 2025 Mid-Atlantic Housing Market by Region
Philadelphia:
Limited buyer and seller activity in the Philadelphia metro area, but prices continue to rise
- There were 4,631 new pending sales in February 2025, which was 10.5% lower than last year and is the lowest February total in more than a decade.
- New listings also declined 10.5%, with just 5,335 homes added to the market in February. The number of February new listings is lower than it has been in more than 20 years.
- Inventory is tight but has improved compared to a year ago as buyer activity has cooled. However, while active listings were up 9.8% year-over-year, at the end of February, supply in the Philadelphia metro area was just 44% of the February 2019 level.
- Mortgage rates have come down in recent weeks and should fall further, which could entice more buyers into the market in the upcoming months. However, finding a home will remain a struggle particularly for buyers looking for detached homes. Additionally, economic uncertainty could move some buyers and sellers on the sidelines.
Baltimore:
Prices still rising in the Baltimore metro area, but activity lags last year
- With slower buyer activity and more inventory, prices have not been rising as quickly in the Baltimore area market. The median sale price in February was $372,250, up 3.4% compared to February 2024.
- New pending sales dropped 9.1% in February 2025 compared to February 2024. Across the region, only Harford County had more contracts than a year ago.
- New listings were lower in February as well, declining 12.9% year-over-year. At 2,335, the number of new listings was the lowest February total in more than 20 years.
- Easing mortgage rates may encourage more activity as the spring buying season approaches. The slower pace of price growth won’t cure affordability challenges but could help some on-the-fence buyers.
Washington, D.C.:
Washington D.C. area housing market slow in light of economic uncertainty
- New pending sales dropped 9.5% year-over-year with 3,485 contracts in February 2025. This is the slowest pace of February contract activity since 2008. Across the D.C. area, only Loudoun County, VA had more new pending sales than a year ago (+17.3%).
- Listings were also lower in February, down 2.6% compared to a year ago. Despite fewer new listings, month-end inventory is up nearly 30% from a year ago as homes are staying on the market longer. Inventory has expanded across housing types, but only condo active listings have recovered compared to their pre-pandemic levels.
- The median sold price in February 2025 was $597,000, a 6.6% increase compared to last year.
- Federal government workforce cuts and back-to-the-office mandates likely will have an impact on the region’s housing market, but it is too soon to tell the extent. Bright MLS is tracking weekly market data in the national capital region. This weekly tracker provides the accurate and up-to-date information on the region’s housing market activity.
The full Mid-Atlantic and market metro area reports are available at BrightMLS.com/MarketInsights.
CONTACT: Christy Reap Bright MLS 2023099362 christy.reap@brightmls.com
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