2024: A Year of Rising Prices and Lingering Challenges

Prepared by Square Feet Appraisals in collaboration with Delaware Beaches Online

Data Source: Bright MLS 

Despite a slight slowdown in sales, the 2024 housing market was marked by a continued rise in home prices across the Bright MLS service area. The median sold price reached $410,000, a 6.5% increase compared to 2023. This upward trend in prices was even more pronounced in the Mid-Atlantic region, outpacing many other parts of the country. Nationwide, the median price of existing homes rose by 4.4% in 2024.

This combination of rising prices and elevated mortgage rates created a challenging environment for buyers, especially first-time homebuyers and those with moderate incomes. While mortgage rates briefly dipped to nearly 6% in September, they hovered in the mid-6% range for most of the year.

The price increases were widespread across the Bright MLS service area, with the Philadelphia region experiencing the most rapid growth at 8.7%. Interestingly, close-in suburban markets within major Mid-Atlantic metro areas saw the strongest price appreciation, while prices in central cities and more distant suburbs grew at a slower pace.

A Fast-Paced Market with Limited Inventory

While the market remained relatively fast-paced, buyers in 2024 had a little more breathing room compared to the frenzied pace of the pandemic years. The median days on market in the Bright MLS service area was 11 days, meaning half of the homes sold in 11 days or less. Although this was slightly slower than the 2023 median of 10 days, it was still significantly faster than the pre-pandemic market, where homes typically took a month or more to sell.

This continued fast pace was largely attributed to the persistent lack of inventory. Buyers still needed to act quickly, as competition remained fierce in most markets. Bright’s surveys indicated that over 60% of sellers received multiple offers in 2024, with an average of 2.5 offers per seller by the end of the year.   

However, there were variations across the Bright MLS service area. The Del/Mar Coastal region had the slowest market pace, with a median of 27 days on market. In contrast, homes sold most quickly in the Washington D.C. metro area and Central Pennsylvania region.

New Listings and the ‘Rate Lock’ Effect

Despite the challenges, a total of 285,488 new listings entered the Bright MLS service area in 2024, exceeding the 2023 numbers. However, monthly listing activity remained low throughout the year, dropping significantly towards the end and hitting record lows in most local markets by December 2024.

One contributing factor to this low inventory was the “rate lock” effect. With about 60% of mortgage holders having an interest rate below 4%, many homeowners were hesitant to sell and give up their favorable rates. Bright’s surveys revealed that over a quarter of agents had clients who decided not to sell specifically because they didn’t want to lose their current low mortgage rate.

So, what does this all mean for you? Whether you’re a buyer or a seller, staying informed and adaptable will be crucial in the 2025 housing market. To gain a deeper understanding of the forces at play, be sure to check out our next post: “2025 Housing Market Predictions: What Buyers & Sellers Can Expect.”

Motivations for Selling

For those who did sell in 2024, family reasons were the primary motivation. Bright’s survey results showed that more sellers were looking to “move up” to larger homes rather than downsize. However, a significant portion of sellers were also motivated by health reasons, including older adults moving into assisted living or nursing facilities.