Even with mortgage rates hovering near a two-decade high, there are plenty of buyers in the Mid-Atlantic looking, according to a real estate agent survey by listing service Bright MLS. But their quest for a home continues to become more challenging.
It is, however, a good time for homeowners to put their home on the market.
Bright MLS reports 56.5% of buyers in the Mid-Atlantic region in May paid over the seller’s original list price, an average of 5.6%. Nearly two-thirds of homes priced between $500,000 and $699,000 sold for more than the listed price.
Real estate agents in this region said multiple offers are more common than ever. In May, 74.7% of sales that closed had received more than one offer, nearly a quarter had five or more offers and 6.7% of homes at least 10 offers.
Homes that sold in the Mid-Atlantic region in May had been on the market a median of seven days, meaning half of all homes that sold had been on the market a week or less.
High mortgage rates appear to be affecting potential sellers as much as potential buyers. Many who don’t have an immediate need to sell are reluctant to do so, if selling would mean taking out a new mortgage to buy another home.
“With inventory so low and many homeowners reluctant to give up their extremely low mortgage rates, everyone is wondering where new listings are going to come from,” said Bright MLS chief economist Lisa Sturtevant.
Among homes that are coming on the market, many aren’t owner-occupied properties, with an increase in second homes and investment properties being listed for sale.
“Some of these homes were purchased during the pandemic when people were working remotely. As more workers are called back to the office, fewer people are able to take advantage of those vacation getaways,” Sturtevant said.
Another possible reason for the increase in second-home and investment properties being listed is a slowdown in the short-term rental market.
The Bright MLS agent survey indicates buyers will outnumber sellers for the foreseeable future, with 41% saying buyer activity will remain high to very high in the next three months, and 57% saying seller activity will be low to very low.
The Bright MLS survey included about 1,700 agents representing either buyers or sellers in the District, Maryland, Virginia, West Virginia, New Jersey, Pennsylvania and Delaware, and was conducted during the week of June 7.
