Bright MLS July 2025 Housing Report: Home Sales and Listings Sluggish in July

Higher-end buyers drive price growth in the Mid-Atlantic market

North Bethesda, Md., Aug. 11, 2025 (GLOBE NEWSWIRE) -- Market activity was lackluster in July, as many buyers and sellers are holding back amidst economic uncertainty. Through the first half of the year, home sales in the Bright MLS service area had been tracking slightly ahead of last year’s levels. However, in July, the number of closed sales was 2.8% lower than they were last July.

Inventory is higher and mortgage rates are lower than they were a year ago, but those factors have not been enough to draw buyers into the market. In July, there were 20,847 new pending contracts in the Bright MLS service area, which was 1.7% below last year. Year-to-date through July, new pending sales are tracking 1.5% below 2024.

Buyer activity is down in most markets across the Bright MLS service area. The number of pending sales year-to-date in 2025 is lower than it was last year in every subregion across the area with the exception of the Central Pennsylvania market, where sales tracked slightly higher than 2024.

“It is not just about mortgage rates anymore. Many people are feeling anxious about their own personal financial situations, and that uncertainty is keeping them from making the decision to buy a home,” said Lisa Sturtevant, PhD, Chief Economist at Bright MLS. “Higher-income buyers, those who are still feeling more economically secure, are accounting for a bigger share of housing market activity this summer.”

In July, the most active segment of the market was the higher end, which drove price growth in many parts of the Mid-Atlantic. In July, the median sold price in the Bright MLS service area was $440,000, which was a 4.8% year-over-year increase. However, the increase in the median price reflects a shift in closed sales to more higher-end sales, rather than broad price increases across the full range of home types. Price growth has stalled for entry-level homes and more moderately-priced homes as affordability has become a bigger constraint for buyers.

As inventory continues to build, it is likely that home price growth will slow more broadly this fall. At the end of July, there were 23,804 listings available for sale across the Bright MLS service area, which is up 26.2% compared to a year ago. Overall inventory in the region is now at 69% of pre-pandemic levels, but there is a lot of variation across markets. For example, the inventory of condominiums is well above where it was in 2019, but the inventory of single-family detached homes is still far below where it was six years ago.

Inventory is growing not because of a surge in new listing activity. In fact, the number of new listings that came onto the market in July was lower than it was last July (-0.7%). Even though listings are down, inventory is rising because sellers are outnumbering buyers this summer. While the growing inventory suggests the housing market is moving towards more of a balanced market, it really remains a “stuck” housing market.

Prospective buyers are cautious amidst economic uncertainty and affordability challenges. Rising inventory gives buyers more choices, and if mortgage rates come down, more people could be enticed to get into the market. However, it is not just about inventory and mortgage rates anymore. Other financial concerns are going to hold back some buyers. As a result, expect housing market activity to continue to be slow as we head into fall.

July 2025 Mid-Atlantic Housing Market by Region

Philadelphia:
Home prices hit a new record high driven by double-digit price growth in suburbs.

In the Philadelphia metro area, the median sold price in July was $420,000 up 6.3% from a year ago and a new record high for the region. Home prices grew fastest in some of the Philadelphia suburbs, including double-digit price appreciation in Gloucester and Mercer counties in New Jersey; Montgomery County, PA; and New Castle County, DE.
Overall sales activity was slow in the Philadelphia metro area, with the number of closed sales down 2.8% compared to a year ago
The number of new pending sales rose in July, tracking 1.7% above last year, though year-to-date pending sales are still slightly below 2024.
Higher-end buyers have been driving growth in the median sold price in the Philadelphia metro area, while growing economic uncertainty is sidelining first-time buyers and moderate-income buyers. Expect inventory to continue to increase as we head into fall, though supply will remain relatively tight in many local markets.

Baltimore:

Market activity stalled in the Baltimore metro area.

In July, the total number of closed sales in the Baltimore region was 5.0% lower than last July, and new pending sales were down by 4.7%.
New listings also fell in July. Compared to a year ago, the number of new listings was off by 7.5%. However, year-to-date, overall new listing activity is higher than a year ago. Inventory at the end of the month was up 25.7% compared to last year.
Home prices are still rising, with the median sold price up 4.2% in July. But there is significant variation across the region, with prices falling in Carroll and Harford counties and rising quickly in Anne Arundel and Baltimore counties.
Home sales activity in the Baltimore metro area is tracking below last year’s level as economic uncertainty is holding back both buyers and sellers. Affordability is a big challenge for many prospective homebuyers. It is likely that we will see home sales continue to be sluggish over the next few months.

Washington, D.C.:
Inventory is rising quickly in the Washington D.C. metro area.

At the end of July, there were 10,283 active listings across the region, which is up 40.1% compared to a year ago. The inventory of attached homes and condos is now at or above pre-pandemic levels, but the number of single-family detached homes on the market is still very limited.
Buyers are showing signs of holding back. In July, closed sales were down 2.5%, while the number of new pending sales fell by 3.4%.
The median sold price in the region was $640,000 in July, up 2.4% compared to a year ago. Stronger sales in the higher-end of the market is driving the increase in the median price.
As inventory rises, expect home price growth to soften as we head into fall. In some local markets, particularly in the further-out jurisdictions, home prices could fall year-over-year.

Christy Reap
Bright MLS 
2023099362
christy.reap@brightmls.com

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