Top Price Growth in the Mid-Atlantic

Even with the backdrop of rising interest rates and uncertain economic conditions, prices continued to rise in May in nearly every local market across the Mid-Atlantic. The overall median price in the Mid-Atlantic was up by 9.6% compared to a year ago. Counties in the top ten saw prices growing at more than double that rate.

The growth rate of pricing in the Mid-Atlantic can be attributed to low inventory levels. Markets with the fastest year-over-year price growth tended to be suburban or exurban markets, further from major urban areas and where there have historically been more moderate prices. Second home markets also saw notably strong price growth.

Top 10 Fastest Growing Markets

Location	May 2022	May 2021	% Change
Schuylkill County, PA	$130,000	$95,625	36.0%
Camden County, NJ	$300,000	$244,500	22.7%
Fauquier County, VA	$622,500	$507,500	22.7%
Washington County, MD	$290,500	$237,500	22.3%
New Castle County, DE	$334,950	$275,500	21.6%
Spotsylvania County, VA	$443,000	$365,505	21.2%
Sussex County, DE	$453,900	$374,750	21.1%
Ocean County, NJ	$442,000	$367,500	20.3%
Adams County, PA	$275,000	$229,000	20.1%
Harford County, MD	$380,000	$320,000	18.8%

*Includes only counties with at least 100 closed sales in May.

Why are We Still Seeing Substantial Price Increases?

Across the Mid-Atlantic new listings were down 10.0% from last year while days on market remained at record low levels. Competition in the market is still elevated and in more moderately priced counties, demand remains high for areas where your dollar can go further. Even with prices increasing in these areas, the overall cost of purchasing has not risen as quickly compared to those areas closer to major cities.

Where is Price Growth Rising the Quickest?

Price growth has risen fastest in more suburban, exurban, and secondary housing markets. These areas saw increased price growth throughout the pandemic as people turned to virtual work and looked for more space. Even with some workers returning to the office, these areas are still seeing price increases. Though buyer activity is not what it was during the pandemic in many of these counties, the lifestyle changes many people have become accustomed to, along with the lower price points of many of these counties, continue to attract purchasers. One risk to these further-out markets is the rising price of gas, which could deter buyers from moving further out.

A Look at the Top 10

1. Schuylkill County, PA
Median home price: $130,000
Closed Sales: 126
Year-over-year Price Growth: +36.0%

Schuylkill County is located northeast of Harrisburg, and about 100 miles northwest of Philadelphia. The county is known for its railroads and energy production history while all in the backdrop of a more rural setting. Price gains were the largest gains in the Mid-Atlantic in May, rising 36.0% from last year.

2. Camden County, NJ
Median home price: $300,000
Closed Sales: 622
Year-over-year Price Growth: +22.7%

Just on the other side of the Delaware River, Camden County draws in many homebuyers with its proximity to Philadelphia. Camden County includes options for both urban and exurban living with a wide range of cultural and recreation amenities.

3. Fauquier County, VA
Median home price: $622,500
Closed Sales: 117
Year-over-year Price Growth: +22.7%

Total home sales were down from the previous year, however 62% of the homes sold in May sold for $500,000 or more. The county is one of the fastest growing in the US with an ample number of outdoor activities ranging from equestrian to wineries. Fauquier County has attracted higher-income buyers from other parts of the Washington DC metro area, leading to significant price growth.

4. Washington County, MD
Median home price: $290,500
Active listings: 190
Year-over-year Price Growth: +22.3%

Washington County, MD is located towards the panhandle of Maryland and is one of three counties in Maryland to be recognized as part of Appalachia. The rural back drop and historical sites are a draw for both permanent residents and travelers a like. During May, the median home price in the county hit an all-time high and prices are up $105,000 since May of 2019.

5. New Castle County, DE
Median home price: $334,950
Closed Sales: 636
Year-over-year Price Growth: +21.6%

New Castle County is the largest county in Delaware and accounts for around 60% of the total population of the state. New Castle County gives residents proximity to both Wilmington and Philadelphia, and has attracted buyers who are looking to move out of the city but still need to be close due to work.

6. Spotsylvania County, VA
Median home price: $443,000
Closed Sales: 254
Year-over-year Price Growth: +21.6%

During the pandemic Spotsylvania County, saw a surge of buyer interest both from primary residents, as well as from second-home buyers. Though activity has started to cool compared to the historic market last year, prices continue to rise as the county is still attracting buyers.

7. Sussex County, DE
Median home price: $453,900
Closed Sales: 547
Year-over-year Price Growth: +21.1%

Demand for homes in Sussex County was high during the pandemic, with second home buyers attracted to coastal communities. Though activity was not as strong as last year, demand for second homes and limited supply within the beach towns is cause prices to continue to rise throughout the county. Prices have increased about $170,000 since May of 2019 and hit a new all-time high during the month.

8. Ocean County, NJ
Median home price: $442,000
Closed Sales: 211
Year-over-year Price Growth: +20.3%

Ocean County is located on the Jersey Shore line about 25 miles north of Atlantic City, NJ. Similar to Sussex County much of the activity in the county is based on second home activity. Though home sales activity has slowed since last year, prices continue to rise due to inventory levels still near record lows.

9. Adams County, PA
Median home price: $275,000
Closed Sales: 115
Year-over-year Price Growth: +20.1%

Adams County is located on the border with Maryland with Gettysburg as the county seat. Sales activity has been steady, however active listings hit their highest levels since 2021 in May. With home sales activity similar to last year, prices have steadily risen recently and the median price is up $65,000 since May 2019.

10. Harford County, MD
Median home price: $380,000
Closed Sales: 344
Year-over-year Price Growth +18.8%

Located about 30 miles north of Baltimore City with Bel Air as the county seat, the county allows for a quick commute down I-95 to Baltimore City, but is still a more rural environment with properties having more land and space to them. Though home sales activity has slowed since the historic market of 2021, home prices continue to rise due to the quality of properties in the county. Just from April 2022, the median price in the county was up $45,000.

 

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Dr. Lisa Sturtevant serves Bright MLS as the nation’s only MLS-focused economist. She leads research, reporting and insights from Bright’s comprehensive array of real estate data. In 2021, Bright’s over 100,000 subscribers facilitated $142B in real estate transactions through its system stretching across 6 states and the District of Columbia.