Home prices across the Mid-Atlantic now are expected to rise more than previously projected in 2024, pleasing sellers but exacerbating affordability challenges for many potential homeowners.
“With prospective homebuyers still facing record-high home prices in some markets and mortgage rates that will remain in the high 6s for most of the year, affordability is now the biggest challenge in the market,” said Christy Reap, chief economist for Bright MLS, the region’s multiple-listing service.
“It will force some buyers to delay their home-ownership plans into 2025 – or even 2026,” Reap said.
Bright MLS on June 27 released a mid-year update to its 2024 forecast, projecting that when the year is in the record books, the median sales price for all properties in its catchment area will be $397,570.
That’s up from $385,000 for 2023, and represents an increase from the projection of $390,052 that was made at the start of this year.
Bright MLS’s coverage area includes all or part of the District of Columbia, Virginia, Maryland, West Virginia, Delaware, New Jersey and Pennsylvania, encompassing about 70 counties and independent cities.
According to Bright MLS, there are some pockets of the Mid-Atlantic region where homes are relatively affordable and local economic conditions remain strong. In some of these more affordable markets, home prices will continue to rise briskly in 2024, while price growth in some higher-cost markets will slow.
