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A new report from Bright MLS shows that the Mid-Atlantic housing market hit the brakes in October, with regional home sales dropping 29.8%, the sharpest monthly decline in more than two years.

Rising mortgage rates have priced some home buyers out of the marketplace, while others have taken a “wait-and-see” approach, according to the Bright MLS October Housing Report released Friday. Home showings have dropped to pre-pandemic levels and low inventory has driven housing prices higher.

“The effects of the sharp and quick increase in interest rates are being felt in full force in the Mid-Atlantic housing market,” said Dr. Lisa Sturtevant, Bright MLS Chief Economist.

“In most places, we haven’t seen prices fall yet, but they will undoubtedly come down from their peak levels,” Sturtevant said. “However, because home prices ran up so quickly during the pandemic, in most markets prices will remain higher than they were three years ago.”

Bright’s Mid-Atlantic Region includes nine central and southern New Jersey counties. Prices in some New Jersey counties have risen even higher than the regional average of 4%. For example, home prices were up 18.5% in Burlington County and 14.7% in Gloucester County, compared to October of 2021.

These two counties have also experienced a sharp decline in inventory and closed sales on a year-over-year basis, the report found. Closed sales were down 26.2% in Burlington County and 39.2% in Gloucester County last month, compared to October 2021.

The full Bright Mid-Atlantic and metro reports are available at www.BrightMLS.com/MarketInsights.