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Maryland Actual Property Market Faces Unsure 2025 as House Gross sales Climb 2.1% in January, however Rising Costs, Declining Stock, and Mortgage Fee Pressures Problem Affordability
Wednesday, February 19, 2025
Maryland actual property market confirmed a measured begin to 2025, with residence gross sales growing 2.1% in January in comparison with the identical interval final 12 months. In line with Maryland REALTORS®, 3,968 properties modified fingers final month, barely up from 3,866 in January 2024. Nevertheless, rising residence costs and dwindling stock proceed to form market situations, making affordability a rising concern for consumers.
The typical residence value surged 7.1% to $480,542, whereas the median value climbed 5.5% to $406,000, reflecting ongoing competitors available in the market. In the meantime, pending gross sales—a key indicator of future closings—declined by 2.7% to 4,637 models, suggesting that purchaser enthusiasm could also be softening amid greater prices.
Stock constraints stay a urgent challenge. The variety of energetic listings dropped 10.9% to 9,338 properties, limiting choices for potential consumers. On the similar time, new listings shrank by 16.2% to 4,980, additional limiting provide. Including one other layer of complexity, mortgage charges stay risky. The 30-year fastened mortgage charge peaked at 7.02% in mid-January earlier than settling at 6.87% on the time of this report.
With demand nonetheless current however affordability pressures mounting, Maryland’s housing market faces a balancing act within the coming months. Rising costs and fewer accessible properties might problem consumers, whereas sellers may proceed benefiting from sturdy valuations. Whether or not these traits persist will largely rely upon mortgage charge actions and potential shifts in stock ranges.
“Housing affordability remains a top priority for Maryland REALTORS®,” mentioned Cheryl Abrams Davis, 2025 President. “With inventory levels shrinking and fewer new listings coming to market, buyers are facing competitive conditions. We’ve been witnessing this trend for a while now, and it’s why we’re eager to see the General Assembly pass legislation to allow uniform Accessory Dwelling Unit adoption statewide. That measure alone could help to bring 30,000 affordable units to consumers.”
2025 Maryland Housing Survey Highlights Rising Affordability Considerations
Maryland REALTORS® lately unveiled its annual housing survey, gathering insights from registered voters throughout the state. For the primary time for the reason that survey’s inception, respondents spontaneously recognized housing affordability as their main concern. This challenge resonated all through the findings, usually with putting implications. Notably, 42% of younger renters are considering relocating out of Maryland attributable to rising housing prices.
Curiously, 81% overwhelmingly favored the statewide uniform adoption of ADUs. “Local governments should take heed,” mentioned Abrams Davis. “We implore the General Assembly to adopt uniform ADU standards, reflecting the will of their constituents.”
