Baltimore Metro Housing Market Report – January 2025

by Danielle Odagbodo

Housing Market Trends

Affordability and uncertainty keep Baltimore area buyers on the sidelines. In January, the number of new pending sales across the Baltimore metro area was 6.3% lower than it was a year ago. Showing activity was also down by 5.8%. With mortgage rates near 7% and home prices rising by more than 40% over the past five years, some prospective buyers are simply priced out and are waiting for rates to come down. Listing activity is also relatively slow in the Baltimore region. A total of 2,223 new listings came onto the market in January, up from the record low in December, but still three percent lower than a year ago. There are signs that buyers have hit an affordability ceiling, particularly in the region’s suburban markets. In January, the median price was up 2.3%, the slowest pace of home price appreciation since May 2023. Price growth weakened in the Baltimore suburbs, but prices were up strongly in the city in January.

Market Outlook

Baltimore area buyers who had been hoping that 2025 would be the year they could get into the market might be waiting a little bit longer. Mortgage rates have remained persistently around 7% since the start of the year. Rates should come down over the coming months, which will bring some relief to buyers. However, with affordability a major constraint, more buyers may have to make compromises on neighborhood or home type in order to close on a home.

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