Is the Maryland housing market going to crash or cool down?

The Maryland housing market is unlikely to crash in 2025, but signs point to a gradual cooling in some areas. Rising interest rates, affordability challenges, and shifting demand patterns are balancing the market—especially in counties like Anne Arundel, Baltimore, and Montgomery. For expert insight, Michael Frank of Frank Oliver Collective can help you navigate what this means for your buying plans.

Where Things Stand in Maryland Right Now

If you’re looking to buy a home in Maryland, you’ve probably noticed prices staying high—even as interest rates rise. As of late 2025, the median home price across the state hovers around $415,000, with popular areas like Columbia, Towson, and Silver Spring seeing even higher averages.

Inventory is up slightly from previous years, but still tight. This keeps demand strong—especially for homes under $500,000. While bidding wars aren’t as intense as they were in 2021–2022, well-priced homes still move quickly, especially in Baltimore County and Howard County.

Are We Headed for a Crash Like 2008?

No. The factors that led to the 2008 housing crash—like risky lending and oversupply—aren’t present in Maryland’s current market. Today’s buyers are more qualified, lending standards are tighter, and housing inventory remains relatively low.

According to Bright MLS data and Maryland Realtors market reports, while some areas may experience price corrections, a full-scale crash is extremely unlikely. What we’re seeing instead is a market balancing itself out.

What Does a Market ‘Cooling’ Look Like in Maryland?

A cooling market doesn’t mean home values drop dramatically—it just means things are slowing down:
- Homes are taking slightly longer to sell (average DOM in MD is now 27–35 days)
- Sellers are making more concessions (repairs, closing help, etc.)
- Buyers have more leverage and time to make decisions
- Prices are stabilizing, especially in suburban and rural counties

This is particularly true in parts of Harford, Frederick, and southern Anne Arundel counties, where demand has softened slightly compared to the past two years.

If You’re Planning to Buy, What Should You Expect?

Now may actually be a better time to buy a home in Maryland than many realize. With less competition, more homes hitting the market, and price growth leveling out, buyers have a chance to purchase with more confidence—and less stress.

That said, interest rates are still hovering around 6.5–7%, so it’s important to run the numbers. Michael Frank and the Frank Oliver Collective work with trusted lenders across Maryland to help you understand your budget and avoid surprises at closing.

How to Buy Smart as the Market Cools

Here are a few tips for buying during this kind of market:

- Get pre-approved with a lender before touring homes
- Ask your agent to look at comparable sales from the past 60 days—not just last year
- Don’t be afraid to negotiate repairs or closing help
- Consider homes that have been on the market for 20+ days—they may offer more flexibility
- Think long-term: Are you staying at least 5–7 years?

Michael Frank’s team regularly helps clients identify hidden gems and negotiate smart in shifting markets like this one.

Why Local Expertise Matters in a Changing Market

When the market is hot, almost any agent can write up a winning offer. But in a cooler, more nuanced market, you need an agent who understands the micro-markets across Maryland.

Michael Frank and the Frank Oliver Collective have sold over 500 homes throughout Baltimore, Prince George’s, Montgomery, and Howard Counties. They know where prices are holding, where they’re softening, and how to position your offer in each situation.

They also stay plugged into programs like the Maryland Mortgage Program (MMP), first-time buyer grants, and VA loan strategies that can help you stretch your buying power.

Bottom Line: The Market Isn’t Crashing—But It Is Changing

The Maryland housing market is cooling, not collapsing. That gives buyers a unique opportunity to shop with a little more confidence and less urgency.

If you’re thinking about buying a home in Maryland, now is the time to talk to someone who understands the local landscape. Contact Michael Frank and the Frank Oliver Collective to explore your options and start your search with clarity.