The Mid-Atlantic region, similar to the rest of the country, stalled in February as mortgage rates shot back up. This could mean a “bumpy ride” into the spring housing market.
That’s according to the Bright MLS February Housing Market Report. The report showed that both closed and pending home sales were down more than 20% from a year ago. Despite a 37.1% increase in active listings, new listings in February were down 27% to their lowest point in more than two decades.
Active listings are just 40% of the level in February 2019, meaning that for every 10 houses available three years ago, today’s buyer has four houses to choose from. The lack of available options kept home prices rising – growing 2.9% year-over-year to $359,900.
Typical for the lead-up to the spring home buying season, pending sales increased month-over-month. New listings across the region also increased. Both increases were smaller than in past years with pending sales at their lowest level since 2015 and new listings hitting a more than 20-year low. New pending sales were down 22%, according to the report.
Showings, a sign of buyer demand, were down 48.5% year-over-year—a combination of both affordability issues as well as a lack of available homes for sale. With less competition, homes are staying on the market longer than last year—the median days on market increased to 21, according to the report.
The data showed that the suburbs, which typically attract move-up buyers looking for more square footage, backyards and good schools, are faring better than the urban metros.
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