Maryland housing market: Everything you need to know
Interested in Maryland real estate? You’re not alone. This Mid-Atlantic state’s robust economy, strong job market and proximity to the nation’s capital make it a popular choice: Maryland is among the top five most densely populated states in the country. However, tight inventory and high home prices make the Maryland housing market a challenging one. Here’s everything to know about real estate in the Old Line State.
Maryland housing market overview
Mortgage interest rates are high and sales volume is declining, in Maryland as well as nationwide. The median home price here as of September 2023 was $408,200, according to Redfin data, a nearly 5 percent increase over the same month in 2022. It’s also higher than the national median home price of $394,300.
That said, the landscape varies widely from town to town, and also depending on how close you get to Washington, D.C. For example, the median price in Baltimore is just $205,000, per Redfin, while in the D.C.-adjacent suburb of Bethesda it’s a super-steep $1,275,000.
Maryland housing trends and stats
- The median home price in Maryland was $408,200 as of September 2023, according to data from Redfin.
- That’s a 4.8 percent year-over-year increase, and moderately higher than the national median of $394,300.
- The sale-to-list ratio was 100.7 percent, a 0.6 percent increase over last year, meaning most homes sold for just above their list price.
- Homes in the state spent a median of 24 days on the market before selling, which is 5 faster than September of last year.
- Closing costs here are some of the highest in the country, averaging 3.7 percent of the home’s sale price according to data from CoreLogic’s ClosingCorp. On a median-priced $408,200 home, that comes to more than $15,000.
Should you buy or sell in the Maryland housing market?
Wondering whether it’s a good time to jump into the Maryland market? Here’s what homebuyers and sellers alike should consider.
If you’re a home seller
Sellers have the upper hand in the current Maryland housing market. September Redfin data shows just a two-month supply of housing inventory in the state, far short of the five- or six-month inventory level required for a balanced market. In addition, homes are selling more quickly and for almost 5 percent more money than in September 2022, so you may be in a good position to earn more from your home sale, faster than you would have a year ago.
Before you run to list your home, though, make sure you have a solid idea of how much it’s really worth. A local real estate agent can analyze similar homes in your area and help you to get an accurate picture of how much your home might snag once it hits the market.
If you’re a homebuyer
With climbing prices, sky-high mortgage rates and a housing shortage, this is a challenging time to buy a house — in Maryland and everywhere. It’s important to evaluate the cost of living in your desired area of the state, factoring in the price of a home as well as other considerations, like the costs of gas and groceries. Make sure that your home purchase will not leave your budget stretched too thin to afford other essentials.
In a competitive market like Maryland’s, getting preapproved for a mortgage can really give you a boost. Preapproval doesn’t just help you understand exactly how much you can afford to spend on a home, it also shows sellers that you’re a serious, qualified buyer. That can make a big difference in a multiple-bid situation.
Maryland housing market predictions
The recent economic uncertainty has led many people to fear a housing market crash, but most experts agree that a crash is unlikely. It’s true that fewer homes in Maryland are selling now compared to last year at this time — a steep 20 percent drop since September of last year, per Redfin data. But prices are up, demand is high and homes are selling fast, all of which point to no imminent crash.
Find a Maryland real estate agent
The Maryland housing market is competitive and complex, but whether you’re buying or selling, an experienced local agent can guide you to a smooth transaction. It’s important to find an agent who is familiar with your specific locale — especially if you’re in the D.C. suburbs, where market trends may differ significantly from the rest of the state. Before selecting the right agent for you, ask for recommendations from family and friends, and interview a few different candidates as well.
FAQs
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No. In fact, median home prices in Maryland were up nearly 5 percent year-over-year, according to Redfin’s September 2023 housing market data. The median price for a home in the state is $408,200, which is about $14,000 more than the nationwide median.
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Maryland is a seller’s market, with demand far outweighing supply — meaning there are far more people who want to buy a home than there are homes for sale. According to Redfin data, the state had a two-month supply of housing inventory in September, which is far short of the five or six months typically considered a balanced market.
