Greater Annapolis

the quarter in review

Q4 2025 in Greater Annapolis was defined less by a sharp slowdown and more by a reset in buyer behavior. Activity eased from the pace of late summer, as expected seasonally, but the underlying story was one of greater selectivity—not retreat.

Closed sales and total volume declined quarter-over-quarter, while median days on market increased. That combination reflects a market where buyers remained active, but far less willing to stretch on pricing, condition, or location. Inventory rose meaningfully year-over-year, giving buyers more options and reinforcing a shift toward value-driven decision-making.

Despite this recalibration, pricing across the region proved resilient. The rolling 12-month average sales price continued to trend upward year-over-year, signaling that demand fundamentals remained intact even as transaction velocity slowed. With months of supply hovering just above two months, Greater Annapolis stayed firmly in seller-leaning territory—though no longer one where every listing was guaranteed immediate traction.

The most notable behavioral shift occurred in the mid-market. Properties in the move-up price ranges saw softer activity as buyers weighed affordability, monthly payments, and future flexibility more carefully. In contrast, both entry-level and high-end segments showed relative strength. Entry-level demand remained supported by limited supply, while luxury buyers—often less rate-sensitive—continued to transact when properties met expectations.

Waterfront followed a similar pattern, but with sharper contrasts. Sales activity increased year-over-year and average prices moved higher, yet days on market more than doubled and negotiation intensified. Buyers were present and motivated, but far more disciplined—rewarding homes that were well-positioned, well-maintained, and realistically priced, while pushing back on aspirational pricing or deferred condition.

Overall, Q4 marked a transition into a more deliberate market. Homes that aligned price, quality, and location continued to perform well. Those that missed the mark sat longer, adjusted more often, and required sharper strategy to move.