Will Maryland Avoid a Housing Downturn in 2025?

By Nick Waldner

Nick started and leads the #1 KW Team in all of Maryland and DC, selling over 400 homes a year! With 20+ years in the industry, he is the leading expert in Maryland!

Will Maryland home prices hold steady, or are we on the edge of a downturn? After years of rapid growth followed by a cooling period, uncertainty has crept into the market. The reality, though, is more reassuring than alarming. So, should you be concerned?

The short answer: no. But you should stay informed. Here’s what you need to know.

The market has cooled but not crashed. From 2024 into 2025, prices didn’t collapse; they simply cooled. High interest rates slowed some buyers, but low inventory kept homes moving. That balance prevented Maryland from tipping into a downturn.

Prices are stabilizing in a healthy way. Home values across most of Maryland are leveling off, not falling. This shift is good for long-term stability. It gives buyers room to re-enter the market and recalibrate what they can afford, creating healthier conditions overall.

Low inventory keeps prices from dropping. Maryland still faces a historically low housing supply. With more buyers than homes available, prices are unlikely to fall. Unlike states with oversupply, such as Arizona or Florida, Maryland’s limited inventory supports steady values. Well-staged, well-priced homes in the right locations can still spark multiple offers.

Your goals matter more than the market. If you’re planning to flip a home in six months, this market may not work in your favor. But if you’re buying a family home and expect to stay five years or more, you’ll almost certainly see appreciation over time.

Stay informed, not worried. There’s no reason to panic about Maryland’s housing market. What matters is tracking key factors, interest rates, the Fed’s policies, and the job market, all of which influence real estate. Staying connected with a trusted professional ensures you’ll be ready to act when the time is right.

If you’re wondering what this market means for you, let’s talk. Reach out to (410) 505-8268 or Nick@WaldnerWintersTeam.com. I’d be glad to help you weigh your options and find the best path forward.