For the first time in years, the U.S. housing market is clearly shifting back toward buyers.

Nearly 62% of homes sold last year closed below their original listing price — the highest percentage since 2019. Even more notable, the average discount for those homes was around 8%, the largest since 2012.

If you're buying or selling a home in Maryland right now, this shift matters. Here’s what’s happening and what it means locally.

Is 2026 a Buyer’s Market?

We are moving in that direction.

Nationally, 62% of homes sold below their original list price. The average discount on those homes was 8%. In December, there were over 600,000 more sellers than buyers — the largest gap on record in recent years. Existing home sales also jumped 5.1% in December, the biggest gain in nearly two years.

For context, from 2020 to 2022, we experienced an extreme seller’s market fueled by ultra-low mortgage rates. Bidding wars were common, and buyers routinely waived inspections and appraisal contingencies.

That is not today’s environment.

Why Are Buyers Getting Discounts Again?

There are three major factors driving this shift.

First, elevated mortgage rates. While rates have eased slightly from their peak, they remain significantly higher than pandemic-era lows. That limits affordability and reduces buyer demand.

Second, increased inventory in certain markets. When buyers have more homes to choose from, they gain leverage in negotiations.

Third, buyers are more selective. Homes that are overpriced or need significant renovation are sitting longer. Contract cancellations have increased, especially after inspections. When there’s a gap between what sellers expect and what buyers can afford, buyers ultimately determine price.

What This Means for Maryland Buyers

If you’re house hunting in Baltimore County, Anne Arundel County, Howard County, Harford County, Prince George’s County, Montgomery County, or Baltimore City, here’s what to consider.

You may have more negotiating power. Sellers are increasingly offering price reductions, closing cost assistance, mortgage rate buydowns, and repair concessions.

Inspections matter again. Buyers are far less likely to need to waive contingencies to compete.

Overpriced homes are vulnerable. Listings that aren’t aligned with current market value are sitting, even in desirable neighborhoods.

However, this does not mean prices are crashing. It means we are transitioning into a more balanced market.

What This Means for Maryland Sellers

If you're planning to sell, 2021 pricing strategies will not work.

Overpricing in hopes of multiple offers is risky in today’s environment.

Strategic pricing is everything. The homes that are selling are priced correctly from day one, show well, have been professionally marketed, and address inspection issues upfront.

Move-in ready homes still perform best. Buyers are hesitant to take on major renovation projects unless the home is priced accordingly.

The biggest mistake sellers can make right now is assuming last cycle’s momentum still exists.

Is the Market Improving?

There are positive signs.

Mortgage rates are slightly lower than a year ago. Existing home sales have recently increased. Home price growth has slowed, which improves affordability.

Experts expect a modest increase in sales this year as buyers and sellers align more closely on pricing expectations.

We are not in a crash. We are in a recalibration.

Maryland Real Estate Outlook for 2026

Maryland historically behaves more stable than high-volatility markets that experienced dramatic new construction surges.

In our region, inventory is increasing but not flooding the market. Well-priced homes in Towson, Lutherville-Timonium, Hampden, Canton, Bel Air, Columbia, Annapolis, and Roland Park are still moving. Buyers have leverage, but only on listings that are misaligned with market expectations.

The key theme for 2026 is precision. Pricing, preparation, and positioning matter more than ever.

Work With a Team That Understands Market Shifts

Michael Frank, GRI®, leads Frank Oliver Collective at eXp Realty, one of the top-performing real estate teams in Maryland.

With over 500 families served, 509 lifetime transactions, and more than $178 million in lifetime sales volume, Michael and his team bring proven experience to every transaction. The team has 162+ Google reviews, 115+ Zillow reviews, has been recognized in Baltimore Real Producers Top 500 since 2018, holds the GRI designation, and ranks among the Top 100 Realtors in Maryland based on production and reviews.

Michael and the Frank Oliver Collective specialize in helping first-time buyers, Veterans using VA loans, growing families, rightsizing and senior clients, and high-end home sellers.

They serve Baltimore City, Baltimore County, Anne Arundel County, Howard County, Harford County, Prince George’s County, Montgomery County, Carroll County, and Frederick County.

In a shifting market, experience and strategy matter more than ever. If you're considering buying or selling in Maryland in 2026, now is the time to make informed, data-driven decisions.

Frequently Asked Questions

Is it a buyer’s market in 2026?
Nationally, the market is becoming more buyer-friendly, with 62% of homes selling below list price. Maryland is moving toward balance, though prime homes still sell competitively.

How much are buyers negotiating off list price?
On average, homes that sold below list saw about an 8% discount nationally. Local results vary by neighborhood and price point.

Are home prices dropping?
Price growth has slowed, but this is not a crash. It is a normalization phase after an overheated period.

Should I wait to buy?
Waiting is a personal decision. While you may negotiate more today, interest rates and competition could shift. Buying when you are financially ready is typically wiser than trying to perfectly time the market.

Should I sell now or wait?
If priced correctly and marketed strategically, homes are still selling. Overpricing is the biggest risk right now.

Are buyers still waiving inspections?
Far less often than in 2021–2022. Buyers now have more room to negotiate and conduct due diligence.