Home sales transactions low but home prices hit new record high
North Bethesda, MD, June 10, 2025 (GLOBE NEWSWIRE) —
- The median sold price last month in the Bright MLS service area was $435,000, which was up 3.0% year-over-year and is a new record high.
- There were 20,678 closed sales in May, which was 2.6% lower than a year ago. Through May, year-to-date home sales are tracking just below last year’s level.
- The number of new pending sales, which is a count of contracts on homes, was up modestly compared to a year ago. However, through May 2025, year-to-date pending sales are still 1.9% lower than 2024.
- At the end of May, there was a total of 42,981 active listings on the market across the Bright area, up 25.1% compared to a year ago.
- The spring housing market has been slower-than-typical in the Mid-Atlantic region, but home shoppers are still active in many local markets, with showing activity higher than a year ago.
- However, high mortgage rates and economic uncertainty will continue to be headwinds in the market as we move into the summer.
(North Bethesda, Md.) June 10, 2025 — Home buying activity in much of the Mid-Atlantic region continues to be slow. Through May, home sales are tracking slightly below last year’s levels, and 2024 was a year of near-record-low transactions. Increasing economic uncertainty and mortgage rates near 7% have dampened the spring housing market.
In May, there were 20,678 closed sales across the Bright MLS service area. Closed sales were higher in May than they were in April (+11.1%), reflecting a typical seasonal bump. However, compared to last year, home sales across the area were down by 2.6% in May. Year-to-date home sales are tracking 0.5% below last year’s levels.
The number of new contracts on homes rose slightly in May but has been very slow through the first five months of 2025. There was a total of 23,103 new pending contracts in the Bright MLS service area in May, which was 0.5% higher than last May. Year-to-date, new pending sales are 1.9% lower than in 2024.
Despite the depressed home sales activity and elevated mortgage rates, home prices are still rising in most Mid-Atlantic housing markets and the median sold price hit a record high. In May, the median sold price in the Bright MLS service area was $435,000, a 3.0% increase over a year ago, and a new high. Home prices rose in most submarkets throughout the Bright MLS footprint, achieving records in several major markets.
“It may seem perplexing that home prices are hitting record highs even as there seem to be fewer buyers and more supply,” said Lisa Sturtevant, PhD, Chief Economist at Bright MLS. “The higher median price this month largely reflects a shift to relatively more single-family and higher-priced home sales, which has been a stronger segment of the market than the lower-priced and entry-level market.”
While inventory has been increasing, the number of homes available for sale is still very low by historical standards, which is another reason home prices are still rising. At the end of May, there were 42,981 active listings on the market across the Bright MLS service area, which is a 25.1% increase over a year ago.
Inventory has been increasing for 16 consecutive months. More new listings had been driving the inventory increased, but sellers held back in May. There were 25,249 new listings in May, a 3.1% decline compared to last May and a 2.7% drop from the number of new listings in April.
The spring housing market has been slower-than-typical in the Mid-Atlantic region. Rising economic uncertainty and persistently high mortgage rates are holding back both home buyers and home sellers. While the median price hit a record high in May, year-over-year price gains have slowed. In May, prices rose by 3.0%, which was the lowest yearly price appreciation since June 2023.
Home shoppers are still active in many local markets. The number of showings across the Bright MLS service area was 2.5% higher this May than a year ago. There is still a lot of pent-up demand in the market. If mortgage rates come down, the summer could be much busier. However, economic uncertainty will continue to be a headwind in the market.
May 2025 Mid-Atlantic Housing Market by Region
Philadelphia:
Home prices are still rising but affordability is a growing challenge
- In May, the median sold price in the Philadelphia metro area was $395,000, a 5.3% increase over a year ago.
- There were 5,829 closed sales in the region in May, a 2.1% decline compared to last May. Year-to-date sales in the Philadelphia region are up slightly compared to 2024 (+0.5%).
- There were 6,773 new pending sales in May, which was 0.6% lower than a year ago. Year-to-date new pending sales are tracking 1.5% below last year.
- In May, there was a total of 7,527 new listings coming on the market across the Philadelphia region, which is a 5.0% decline compared to last May and is down 4.8% compared to the number of new listings in April.
- Although home sales activity has been relatively sluggish this spring, buyers are still active in the Philadelphia metro area. The number of home showings increased by 5.7% from April and was up 2.2% compared to last May.
- The biggest headwind in the Philadelphia area housing market is affordability, with near-record home prices and high mortgage rates forcing some buyers to wait on the sidelines.
Baltimore:
Home sales activity in the Baltimore region has been very slow this spring
- In May, there were 3,008 closed sales across the Baltimore metro area, which was down 3.1% compared to a year ago. Year-to-date closed sales are tracking 1.0% below last year.
- There were 3,310 new pending sales, up 1.5% compared to a year ago. New pending sales are down 1.1% year-to-date.
- There were 3,279 new listings that came onto the market in the Baltimore metro area in May, a 6.6% decline compared to a year ago.
- The median sold price in the region was up by 2.5% in May, though median prices fell year-over-year in Anne Arundel, Baltimore, and Howard counties.
- Home prices are still rising, though there are signs that prices may be weakening in some higher-priced suburban markets.
- If mortgage rates remain elevated and economic uncertainty continues, sales activity could continue to be relatively slow throughout the summer, and some local markets could see weaker home prices as inventory grows.
Washington, D.C.:
Home prices hit a new record high in the Washington D.C. region
- Despite rapidly-rising inventory, the median home price was up 3.1% compared to a year ago, hitting a new record high of $659,950 in the D.C. region.
- In May, there was a total of 4,790 closed sales across the region, which was down 6.5% compared to last May. Year-to-date sales are tracking 2.0% below last year’s level.
- There were 5,357 new pending sales in May in the Washington D.C. region, a 3.5% increase compared to last May. Despite the May bump, new pending sales are down 2.6% year-to-date in the region.
- At the end of May, there were 10,413 active listings, a 41.6% increase over a year ago. The number of new listings coming onto the market surged earlier this spring, though new listing activity was only up by 0.4% year-over-year in May.
- The Washington D.C. area housing market has been slower-than-typical this spring, but it has fared much better than some expected in the face of cuts to the federal workforce and general economic uncertainty.
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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