Maryland Housing Market Update 2025: Signs of a Slow but Real Comeback
After several years of high mortgage rates and hesitation from buyers, momentum is quietly building beneath the surface of the Maryland housing market. Sellers are reappearing. Buyers are re-engaging. And for the first time in what feels like forever, there’s movement happening again.
No, it’s not a surge. But it is a shift — and it could set the stage for a stronger year in 2026 across communities from Baltimore to Anne Arundel, Howard County, and the Eastern Shore.
So, what’s driving the comeback? Here are three big trends that are slowly breathing life back into the Maryland market right now.
1. Mortgage Rates Have Been Coming Down
Rates still have their ups and downs, especially with today’s economic uncertainty. But the overall trend this year has been downward — giving Maryland buyers more breathing room.
In fact, the most recent drops have delivered the best rates of 2025. Freddie Mac’s Chief Economist, Sam Khater, said:
“On a median-priced home, this could allow a homebuyer to save thousands annually compared to earlier this year, showing that affordability is slowly improving.”
Why does that matter locally?
A lower monthly payment increases buying power — crucial in competitive areas like Montgomery County, Annapolis, and Baltimore City. Redfin reports a buyer with a $3,000 monthly budget can afford about $25,000 more than one year ago. That shift alone is sparking new activity.
2. More Maryland Homeowners Are Ready To Sell
For years, low locked-in mortgage rates kept many Maryland homeowners in place. But as rates ease and life changes take priority, more sellers are stepping forward.
Realtor.com data shows inventory rising toward levels not seen in nearly six years. In Maryland, this is especially true in markets like Columbia, Odenton, and Frederick, where new listings are giving buyers options they simply didn’t have before.
This return to healthier inventory levels is opening doors — literally.
3. More Buyers Are Re-Entering the Market
With better affordability and more homes available, buyers across Maryland are jumping back in. The Mortgage Bankers Association reports purchase applications are up year-over-year, signaling rising demand.
Economists from Fannie Mae, MBA, and NAR all expect this moderate growth to continue into 2026.
This isn’t a rapid comeback — but it is a steady one, and steady is what many Maryland consumers have been waiting for.
Bottom Line
After several slow years, the Maryland market is finally turning a corner. Lower mortgage rates, more listings, and growing buyer activity make 2026 a promising year.
Let’s connect and talk about what’s happening in your Maryland neighborhood — and how to position yourself for success in the year ahead.