The Maryland housing market in 2025 told a story of steady growth, shifting buyer behavior, and a slow but meaningful move toward balance. Prices continued climbing across many counties, though the pace was more moderate than the frenzied pandemic years. Inventory began to loosen, days on market lengthened, and both buyers and sellers gained — and lost — leverage in different ways throughout the year.

Here’s a full breakdown of what happened in Maryland real estate in 2025 and what you can expect heading into 2026.

🏠 Median Home Prices Up, But More Slowly Than 2021–2023

In October 2025, the median sale price in Maryland hovered around $446,300, representing a 2.6% year-over-year increase. Other data sources, like statewide home value indexes, reflected similar growth trends, with Maryland’s average home value landing around $425,000 late in the year.

Certain counties remained extremely competitive:

• Montgomery County: median price around $617,500, up a little over 1% year-over-year.
  
  

• Baltimore City: modest growth of around 0.6%, with homes going pending in about 28 days on average.
  
  

Overall, prices grew — but at a healthier rate than the skyrocketing increases of previous years.

📉 Sales Activity and Days on Market: A Noticeable Slowdown

Even with rising prices, home sales volume in Maryland decreased in portions of 2025. One statewide report showed a 9% annual decline in home sales, signaling buyer hesitation even as demand remained stable.

Meanwhile, days on market rose to a median of about 44 days, roughly 10 days longer than the previous year. That shift gave buyers more breathing room and put pressure on sellers to price homes properly.

This trend didn’t mean the market was weak — only that it was normalizing after several extreme years of ultra-low inventory and bidding wars.

📦 Inventory Trends: A Shift Toward Balance

One of the biggest changes in 2025 was the rise in available inventory. Reports showed Maryland’s for-sale inventory climbing by more than 20% year-over-year in the fall.

Even with more homes on the market, inventory still averaged around three months of supply, which technically favors sellers — but the increased volume gave buyers meaningful negotiating power.

Competitive indicators also softened:

• Fewer homes sold above list price.
  
  

• Sale-to-list ratios fell slightly, even as prices rose.
  
  

This all points to a healthier, more predictable market.

🔍 Buyer vs. Seller Power in 2025

The 2025 Maryland market wasn’t a full-on seller’s market, nor did it fully swing to buyers. It operated in a neutral-to-slightly-seller-leaning zone, characterized by:

Seller Advantages

• Continued price growth across the state.
  
  

• Inventory levels still relatively low in historical context.
  
  

Buyer Advantages

• Increased days on market, allowing more time to make decisions.
  
  

• More homes to choose from than in previous years.
  
  

• Room to negotiate based on pricing and inspection terms.
  
  

This created a market where strategy, preparation, and the right representation mattered more than ever.

📍 What Influenced Buyer Behavior in 2025?

Several factors shaped buyer decisions this year:

Mortgage Rates

Mortgage rates stabilized slightly compared to the highs of late 2024, creating pockets of opportunity for buyers but still keeping affordability tight — especially for first-time buyers.

Affordability Challenges

While Maryland remains more affordable than many coastal states, prices in high-demand regions like Montgomery, Howard, and Anne Arundel Counties continued putting pressure on buyers entering the market for the first time.

Local Economic Trends

Jobs in tech, government contracting, bioscience, and education helped sustain strong demand across the Baltimore–Washington corridor.

These elements kept the market active but tempered, preventing the runaway bidding wars of earlier years.

🔮 Maryland Housing Market Predictions for 2026

Looking forward, economists and industry data point to several likely trends for 2026:

1. Slightly Lower Mortgage Rates

If rates continue to decline slowly, buyer demand will strengthen — but not so dramatically that prices skyrocket.

2. Continued Moderate Price Growth

Expect steady appreciation across most Maryland counties. Instead of the explosive jumps seen in 2021–2022, growth should remain in the low-to-mid single digits.

3. Balanced Market Conditions

Sellers will still benefit from strong demand, but buyers may find it easier to negotiate repairs, contingencies, and price adjustments.

4. Affordability Challenges Persist

First-time homebuyers will continue feeling the squeeze, making grants, down-payment assistance, and creative financing strategies (like 2-1 buydowns) important tools.

5. More Inventory Relief

If 2025’s pattern continues, inventory may slowly build — giving buyers more options and reducing market pressure.

Overall, 2026 is shaping up to be a steady, healthy housing market year — without the volatility of the early 2020s.

🧠 Bottom Line

2025 marked a transition year for Maryland real estate:
Prices climbed, but more slowly.
Inventory grew, but not overwhelmingly.
Days on market increased, but demand stayed strong.

As we head into 2026, all signs point toward a balanced, sustainable market that rewards preparation and strategy. Whether you're thinking about buying, selling, or investing, now is the perfect time to start planning for the year ahead.