North Bethesda, Md., March 10, 2026 (GLOBE NEWSWIRE) --
contact: Christy Reap
202-309-9362
The Mid-Atlantic housing market showed little urgency in February 2026 as both buyers and sellers appeared to be in a holding pattern. Despite mortgage rates falling to a 3½-year low, closed sales were essentially flat compared to last year, and new listings plunged to record lows across much of the region. Home prices across the Bright MLS service area continue to rise, but at the slowest pace in nearly three years.
"Buyers and sellers are moving with extreme caution in early 2026," said Bright MLS Chief Economist Lisa Sturtevant. "Even with mortgage rates falling below 6% briefly, affordability challenges and growing economic uncertainty are keeping both sides of the market at bay. The conflict with Iran has added a new layer of uncertainty just as we would normally expect spring market activity to pick up."
Key Facts – Mid Atlantic, February 2026
- Closed sales: 12,618, down 1.1% year-over-year in February
- New pending sales: down 0.5% year-over-year
- Median sold price: $408,500, up 2.1% year-over-year, the slowest pace growth since May 2023
- New listings: 15,833, down 11.1% year-over-year
- Active listings: up 9.0% year-over-year as homes stay on the market longer
- Median days on market: 27 days, more than a week longer than last year
"The outlook for the spring homebuying season in the Mid-Atlantic has become cloudier," according to Sturtevant. "If the conflict with Iran is limited, the housing market could rebound quickly. However, a prolonged conflict could stall home sales activity this spring. The combination of declining seller inventory and cautious buyers creates uncertainty about whether the market will tighten or continue its move toward balance."
Philadelphia Metro Overview
- February closed sales in the Philadelphia metro were 8.5% lower than last year.
- Pending sales fell by 4.7%, marking the fourth consecutive month of year-over-year declines in new pending sales.
- The 4,574 new listings in February 2026 were a record low for the month in the metro going back to 2003 and represented a 14.3% decline from last year.
- Inventory growth was modest, with just 2.1% more active listings compared to last year. Overall inventory remains less than half of pre-pandemic levels.
- The spring market will be impacted if sellers continue to hold back. Renewed tightness could make the market more competitive for buyers after months of gradual movement toward balance.
Baltimore Metro Overview
- New listings dropped significantly in the Baltimore metro area, falling 14.8% year-over-year to just 1,989.
- Buyer activity remained tepid, with closed sales essentially flat (down 0.1%) and new pending sales up just 0.2% year-over-year. However, the detached single-family home market showed strength, with both closed sales (+8.0%) and new pending sales (+7.8%) strongly higher than a year ago.
- Inventory reached 4,892 homes at the end of February, the highest February month-end inventory since 2020, as homes stayed on the market nearly a week longer than last year.
- The outlook for the Baltimore area housing market remains hazy due to economic uncertainty and the conflict with Iran, which could push back the start of the spring homebuying season.
Washington, D.C., Metro Overview
- New listings fell to historic lows in the Washington, D.C., region, with just 3,574 new listings in February, a 12.8% decline from a year ago and the lowest number of February new listings since at least 2003.
- However, buyers showed slightly more activity, with new pending sales increasing 3.9% year-over-year. New contracts on detached single-family homes rose 7.6%, reinforcing the strength in this segment of the market.
- The median price rose 2.2% year-over-year to $610,000, though price growth has softened as supply continues to increase.
- The spring 2026 housing market across the Washington D.C. metro area market faces considerable uncertainty. While lower mortgage rates should support more transactions, the economic uncertainty stemming from the conflict with Iran could dampen both buyer and seller participation. If sellers continue to hold back and buyers gradually return to the market, some local markets may begin to tighten again, creating more competition for buyers.
The spring 2026 outlook for the Mid-Atlantic housing market has become more uncertain, with both buyers and sellers hesitant to make moves despite lower mortgage rates. International tensions and recent rate volatility will be key in determining whether the market gains momentum this spring or remains stuck in a holding pattern.
