REALTOR® News

December 2025 and Annual Housing Stats

by Jacky Mueck Housing Stats 0 0 Comment 10

With Housing Sales Down in December, 2025 Marked the Early Stages of a Shift Toward the Buyer Inventory and Days on Market Trends Point to Easing Conditions for Buyers.

ANNAPOLIS, MD — January 20, 2025 — Home sales in Maryland fell 4.4 percent in December, with 5,491 homes sold compared to 5,746 a year earlier. The average sales price rose 2.6 percent to $510,264, while the median sales price increased 1.4 percent to $430,000.

Median Days on Market rose from 17 days in December 2024 to 22 in 2025, a signal that buyers are being more discerning about their purchasing decision.

For all of 2025, home sales totaled 67,245 units, down 3.1% from 69,391 units in 2024. Over the same period, the average sales price increased 3.7% to $513,651, while the median sales price grew 2.6% to $431,000.

Inventory conditions showed signs of improvement in 2025. While active inventory fell 5.9 percent for the year, this decrease was notably smaller than in prior years, when inventory declined 12.8 percent in 2024 and 21.5 percent in 2023. Months of inventory rose to 2.2 months in 2025, compared to just 1.4 months in 2023. Days on market also increased, reaching 14 days in 2025, up from 11 days in 2024 and 9 days in 2023—all signs of a shift toward a buyer’s market

“The story I see in these numbers is that the market is shifting toward the buyer,” said Denise Lewis, 2026 President, Maryland REALTORS®. “We’re not yet in a true ‘buyer’s market’ as sales are down while prices continue to rise, but the movement in that direction is becoming increasingly clear.”

Economic Statement from the Sage Policy Group

The pace of home selling slowed in December, capping off a disappointing year for Maryland’s housing market. Nearly 4,000 fewer homes were sold in 2025 than in 2024, a decline of 3.1%, and the weakness was widespread, with sales decreasing in 16 of Maryland’s 24 jurisdictions.

“December’s sluggish pace of sales, with statewide units sold down 4.4% on a year-over-year basis, is particularly disappointing given the recent decline in mortgage rates,” said Anirban Basu, Chair and CEO of the Sage Policy Group. “The average rate for a 30-year fixed-rate mortgage was approximately 6.2% in December 2025, well below the roughly 6.7% average rate in December 2024.”

This slowdown is at least partially due to a struggling statewide economy. Maryland lost 10,800 jobs over the past twelve months, and the state unemployment rate has increased by over a full percentage point, rising to 4.2%. While that’s still below the nationwide average and low by historical standards, it’s up more than 2 full percentage points from the mid-2023 all-time low.

Despite ongoing job losses and a labor force that’s lost more than 13,000 people over the past year, home prices continue to rise, with the statewide average up 2.6% year over year in December. Homes are also taking slightly longer to sell, with the median home taking five days longer to sell than it did one year ago.

There are, however, reasons to be optimistic about buying conditions in 2026. “Mortgage rates are over a percentage point lower than at the start of 2025 and are likely to decline by the end of the year,” said Basu. “Even if the Federal Reserve doesn’t meaningfully lower rates, the White House recently ordered the purchase of $200 billion in mortgage-backed securities. That, combined with softer-than-expected inflation data for December, bodes well for lower borrowing costs.”

The statewide economy may stabilize in 2026, which would provide an even greater boost to home selling. Federal government job losses accounted for the majority of Maryland’s recent employment declines, and that should level off in 2026. The state added 3,000 net new jobs in November, the most recent month for which data is available. While that’s far from spectacular job growth, it represents the first monthly gain since July.

Changes to income tax deductions implemented by the One Big Beautiful Bill Act could also aid the state’s housing market. Higher income households will get exceptionally large tax refunds, and that could boost home buying during the first half of the year.

Basu added, “Ultimately, the outlook for Maryland’s housing market is similar to the outlook for the nationwide economy: shrouded in uncertainty, but with definitive upside.”