The 2024 real estate market had challenges in affordability while homebuyer demand grew.

The Baltimore real estate market showed a 1.2% increase in number of sales over 2023. The median sold price in Baltimore was up 6.3%. New listings were up 4.4%.

Looking towards 2025, only one in five consumers believes now is a good time to buy a home. Meanwhile, two-thirds of consumers think it is a good time to sell a house. (But where would those sellers go?)

Even if consumers think it is a good time to sell, agents and brokers are not seeing or foreseeing seller activity to be high in the first quarter of 2025.

Between high mortgage rates, high home prices, multiple offers and unaccepted offers, many homebuyers put their home search on hold in 2024. These home buyers have been waiting for mortgage rates and prices to come down, and more homes to come on the market. But will that happen in 2025? Mortgage rates have been volatile and are expected to continue to be volatile through 2025.

The majority of buyers surveyed are looking for “move-in-ready” homes in 2025. Many also have to return to work in person so commuting time may be a factor.

That being said, inventory is expected to remain historically low, so buyers may need to compromise on their wants vs needs.

Home sellers in 2025 are expected to be younger. A large number of homeowners bought during the pandemic while the interest rates were low and lives were very different than they are now.

The younger homeowners considering selling in 2025 cite marriage, divorce, birth of a child, or a move closer to a relatives, a career change, moving for a job, or a shorter commute now that they are back in the office more often as a reason for a potential move.

There are a few potential wildcards in the Baltimore real estate market in 2025 (as well as across the Bright MLS coverage area, which includes the District of Columbia, Delaware, Maryland, New Jersey, Pennsylvania, Virginia and West Virginia.)

The new Presidential administration’s tariffs, immigration policies, and return-to-office directives can potentially shape the market.

Inflation is also a factor, as higher inflation expectations made the Federal Reserve reduce intended interest rate cuts in 2025.

Read more in the Mid-Atlantic real estate 2025 report from Bright MLS.

So, what does all of this mean for the Baltimore real estate market in 2025?

Volatility in the market is expected, and patience and understanding from all parties will be paramount.

Contact me today to help you navigate through this ever-changing Baltimore real estate market. I would happy to help you move forward!