Fall 2025 Real Estate Market Update: Greater Annapolis & Surrounding Regions

Greater Annapolis – Resilient Demand Amid Low Supply

Greater Annapolis (Anne Arundel County) remains a standout market as we head into fall 2025. Recent data show that home sales have held steady – about 744 homes sold in July 2025, roughly on par with the same month last year (+0.8% year-over-year). Prices continue to climb modestly, with the median sale price around $505,000 (up ~4.1% from July 2024). This price growth, despite higher interest rates, underscores the persistent demand in the area. Inventory, however, remains extremely tight. Anne Arundel County has only about 1.9 months of housing supply, keeping it firmly in a seller’s market (far below the ~6 months needed for a balanced market). Even though homes aren’t selling at the lightning pace of last year’s frenzy, they are still moving quickly – the median time on market in July was just 9 days, up from 6 days last year but still under two weeks. Buyers are out there and acting fast on desirable listings, often yielding sale-to-list price ratios at or near 100%.

What’s driving this resilience in Greater Annapolis? A combination of factors: strong local demand, limited new inventory, and the area’s enduring appeal (from waterfront properties to convenient commutes). In July, the market saw activity across price points – including 42 waterfront homes and 65 luxury homes sold that month – indicating that even higher-end segments are seeing movement. Entry-level and mid-range homes, however, are the hottest commodities, as first-time buyers and move-up buyers compete for the few available options. All signs point to Annapolis staying competitive this fall, with well-priced homes continuing to draw interest soon after listing.

“When homes take longer to sell, it signals a more deliberate buyer environment, and that’s what we’re seeing today. Affordability remains a top issue.” – Cheryl Abrams Davis, 2025 President of Maryland REALTORS®thebaynet.com

This more measured pace in Annapolis doesn’t mean a lack of demand – it means buyers are being strategic and price-conscious. Sellers still have the advantage given low supply, but they must align with the market on pricing and condition to attract today’s more cautious buyers. Properly priced, move-in-ready homes in Annapolis are still receiving multiple offers and can sell quickly, whereas overpricing may lead to longer time on market. The quote above highlights that buyers are taking their time and weighing affordability, a trend we’re noticing locally as higher mortgage rates have curbed some of the urgency. In short: Greater Annapolis enters the fall with a healthy market, albeit one that’s normalizing from the craze of the past few years. 

🎯 Key takeaway: Sellers should remain confident but realistic, and buyers who are prepared can still secure a home in this coveted area without the extreme bidding wars of 2021–2022.

Regional Market Highlights – Other Areas at a Glance

While Greater Annapolis is our cornerstone, it’s insightful to see how other nearby Maryland markets are performing as we approach fall. Here’s a quick rundown of regional trends, showing both similarities and contrasts:

Southern Maryland (Calvert, Charles & St. Mary’s Counties): This region continues to see steady growth. July sales were up ~3.7% year-over-year, and median prices rose about 4.8% vs. last year. With a median sale around the mid-$400Ks, Southern Maryland remains relatively affordable and in demand. Inventory sits at roughly 2.6 months (a seller’s market), and homes spent a median of 13 days on market (up from 11 days last year). The combination of suburban appeal and value (especially for buyers commuting to D.C. or Andrews/Pax River) keeps this market active, though buyers are negotiating a bit more than last year.

Eastern Shore (Queen Anne’s, Kent & Talbot Counties): The Eastern Shore market has cooled to a balanced condition after the pandemic-era rush on rural and waterfront properties. July sales were up a slight 3.4% year-over-year, but notably prices dipped – median sale price was about 4% lower than a year ago. This hints at some normalization (perhaps fewer high-end sales than last summer). Inventory is around 4 months, which is right on the cusp of a balanced market. In other words, supply and demand are more in equilibrium here than in other regions. Homes are spending longer on the market (median 18 days, vs 11 days last year) as buyers have more choices. Well-priced waterfront and vacation homes will still attract interest, but generally buyers have the breathing room to be selective on the Eastern Shore this fall.

Greater Baltimore (Baltimore City, Baltimore County, & Howard County): The metro Baltimore area is showing mixed signals. Sales volumes in July were down about 5% from last year (1,679 homes vs ~1,902 in July 2024), yet prices have climbed – median sale price jumped roughly 8% year-over-year. This implies that while fewer homes are changing hands (likely due to limited inventory and some buyer fatigue), the properties that do sell are still fetching higher prices. Inventory in Greater Baltimore remains low at around 2.4 months of supply. keeping it a seller’s market. However, the median days on market rose to 13 days (from just 9 days last year), another sign that buyers are no longer rushing en masse. Popular suburban spots (like Howard County or northern Baltimore County) continue to see competition for turnkey homes, whereas in the city and higher price tiers, sellers are having to work a bit harder (and price more keenly) to get deals done.

Across all these regions, a common thread is that housing supply is still historically low – but demand has become more measured compared to the frenzied market of a couple years ago. Prices are generally holding or rising year-over-year in most markets, a testament to that low supply, even as sales volumes have dipped in some areas. Buyers today are contending with higher monthly payments due to interest rates, so they’re laser-focused on value, which leads to slightly longer sales timelines and more negotiation in many cases. Sellers around Maryland are noticing this shift. In fact, Maryland’s statewide July housing stats showed sales down 9.6% from a year ago, even as the median price inched up 2.8% to $445,000. Active listings have ticked up slightly (+0.5% year-over-year statewide), and Maryland now has about 2.6 months of inventory – still well below a balanced level, but higher than the ultra-tight conditions we saw in 2022. Homes are taking longer to sell on average (median 13 days on market versus just 8 days last summer), reflecting this more patient market environment.

Economic Factors Shaping the Market

Several economic factors and major news stories are influencing buyer and seller behavior in late 2025:

Mortgage Rates & Affordability

Mortgage Rates & Affordability: Mortgage interest rates have been hovering in the 6%–7% range for most of the past year. The Federal Reserve kept its benchmark rate unchanged at the June meeting, and while some forecasts predict a modest rate cut in 2025, no significant relief is expected in the immediate term. These higher borrowing costs directly impact affordability – even though prices aren’t surging like before, the cost of financing a home is substantially greater than a few years ago. As a result, monthly payments for a median-priced home in Maryland are straining budgets, and some would-be buyers have held off or exited contracts upon realizing the payment burden. The uptick in deal cancellations is one sign: about 13.2% of pending sales in the Baltimore metro fell through in June 2025, the highest June cancellation rate in recent history. High prices coupled with high rates are causing buyers to be more cautious, and in some cases, back out if inspections reveal costly issues or if a better home hits the market.

Local Economy & Employment

Local Economy & Employment: On the positive side, Maryland’s job market has remained relatively stable, and sectors like government, defense, and healthcare provide a steady stream of buyers (and some incoming residents). We haven’t seen major layoffs regionally that would flood the market with listings; rather, the bigger issue is homeowners staying put. Many potential sellers refinanced or bought when rates were 3%, and are reluctant to give up their low-rate mortgages, contributing to the inventory shortage. This “lock-in effect” means fewer move-up buyers listing homes, which in turn restricts choices for first-time buyers. The stalemate continues: people who might want to move are weighing the cost of financing their next home and often deciding to renovate or stay put instead. This has kept resale listings scarce across Anne Arundel and surrounding counties.

Housing Policy & Supply Constraints

Housing Policy & Supply Constraints: A major story impacting the housing market is the ongoing shortage of affordable housing in Maryland. A recent report from the University of Maryland’s National Center for Smart Growth estimates the state faces a deficit of nearly 300,000 affordable housing units. This shortfall disproportionately affects those with moderate or fixed incomes and puts pressure on the entire market (as many buyers are pushed into competing for market-rate homes). Industry leaders are vocal about this issue.

Cheryl Abrams Davis (Maryland REALTORS® President) has criticized local governments for zoning and development constraints, arguing that without more “middle housing” (like townhomes, duplexes, ADUs) and affordable options, young professionals, working families, and downsizing seniors have nowhere to go. She warns that if local authorities don’t act, “economic vitality will suffer as buyers look for more affordable homes outside this great state”.

This backdrop of high demand and low supply is the fundamental economic driver of our housing market conditions – it’s why prices remain elevated and why any relief in competition tends to be modest. Until we see changes like increased new construction, zoning reform, or infrastructure that opens new areas for development, the Maryland housing market is likely to stay tighter than buyers would prefer.

Regional Developments

Regional Developments: Regionally, there are a few bright spots and challenges worth noting. Large employers in the Baltimore–Washington corridor continue to hire (or at least backfill positions), which sustains housing demand. We’re also seeing infrastructure improvements (for instance, ongoing discussions about a new Chesapeake Bay crossing and local highway upgrades) which, if realized, could expand the radius of feasible commutes and unlock new housing growth in coming years. On the flip side, insurance and climate concerns are creeping into real estate decisions – waterfront communities around the Chesapeake are increasingly mindful of flood insurance costs and climate resiliency, although this has not yet significantly dampened demand for those coveted locations. These factors haven’t dramatically altered the fall market, but they add context: buyers and sellers are planning for the long term, considering not just interest rates and prices, but also where the region is headed in terms of growth and livability.

In summary, the economic picture as we enter fall is one of moderating activity underpinned by solid fundamentals. Higher financing costs have cooled the pace from the ultra-hot market of 2021, but low inventory and a strong local economy mean we are far from any downturn in home values. Instead, we have a market that’s seeking equilibrium – and gradually finding it as both sides adjust expectations.

Fall 2025 Outlook – Opportunities, Trends & Fast-Moving Properties

As the busy summer real estate season winds down, what can buyers and sellers expect this fall? Historically, autumn brings a slower tempo: there are usually fewer buyers actively house-hunting (many families prefer to move before the new school year), and inventory often peaks in late summer then declines. However, fall 2025 is shaping up to offer some unique opportunities – and certain properties will continue to move quickly even in the cooler months. Let’s break down the key fall trends:

1. More Choices for Buyers (and More Time to Decide): This fall could be a bit of a “sweet spot” for buyers. The frantic competition of spring has eased, and inventory levels are actually higher than we’ve seen in recent years. Zillow data shows the number of homes on the market nationally is the highest since mid-2020, thanks to a buildup of listings that didn’t sell over the summer. In fact, the past two years saw peak inventory in October, and 2025 looks to repeat that pattern. New listings trickled in during late summer and early fall, but many spring listings have lingered unsold, meaning buyers now have a wider selection – **20% more homes for sale nationally than a year ago, as of mid-year. Fewer active buyers also mean you’re less likely to get into a bidding war this season.

Kara Ng, a senior economist at Zillow, notes that a lot of house hunters are in “wait-and-see” mode: “There’s a lot of uncertainty out there, and some buyers are just waiting to see what happens. So if you’re able to buy, fall could be a sweet spot since you won’t be competing against the pool of buyers waiting on the sidelines.”

In practical terms, buyers can afford to be a bit more deliberate. Homes aren’t flying off the shelf in mere days like before; you might have a few weeks to house-hunt and compare options rather than a few days. For example, last year it took on average 17 days longer for a typical U.S. home to go under contract in November vs. May. We expect a similar dynamic this year – the pace is “far from leisurely,” but definitely less frantic, giving buyers breathing room to consider inspections, weigh their budget, and make contingency-inclusive offers without immediately losing out.

2. Prices Leveling Off (and Even Softening in Spots): After years of double-digit appreciation in home values, price growth has flattened in many markets. We’re not seeing widespread price drops in Maryland, but sellers have become more realistic. Many listings are now adjusting prices or offering concessions if they don’t get traction in the first few weeks. In fact, last fall saw the highest rate of price cuts in September and October, and we anticipate a similar or higher rate this fall. Already by May 2025, 26% of U.S. listings had a price reduction – a sign that sellers are responding to the cooler demand. Zillow’s economists predict a slight decline (around 1–1.5%) in national home values by the end of 2025. Locally, that could translate to essentially flat prices through the rest of the year (some neighborhoods might see minor dips, especially where prices overshot affordability). For buyers, this is encouraging: the era of rushing to offer over-asking is fading. You may even negotiate sales prices below list in certain cases – something virtually unheard of during the 2021 boom. (In Greater Annapolis, for instance, homes have recently sold for an average of about 1% below asking as negotiations normalize.) Importantly, lower prices are not forecast in a dramatic way, but this flattening trend gives buyers a chance at a better deal or at least the peace of mind that they’re not chasing a rapidly rising target. Sellers should note that while demand is still out there, overpricing a home this fall is likely to backfire – today’s buyers will pass on a listing that doesn’t compare well on value, and it could stagnate until a price cut is made. The silver lining for sellers is that if you price appropriately from the start, you can still sell at a very strong price point, given that overall inventory is low by historical standards.

3. Stable (but High) Mortgage Rates – Plan Accordingly: As mentioned earlier, mortgage rates are expected to hold in the high-6% range through the fall. There’s always a possibility of economic news pushing them slightly up or down, but no significant relief is likely in the immediate weeks. Buyers should lock in a rate when they see a favorable dip and budget conservatively. The good news is, with rates having been elevated all year, lenders have gotten creative – we’re seeing more offers of rate buydowns, adjustable-rate mortgages (ARMs), and other financing incentives. Some sellers (and new home builders) are even offering to cover closing costs or buy down the buyer’s rate for the first couple of years. These concessions can make a big difference in affordability. If rates do unexpectedly dip late in the year, buyers who locked in can always refinance; if they rise, those who secured today’s rate will be glad they did. For now, the environment of rate stability means buyers can calculate their budget with more certainty – there’s less fear of being priced out by a sudden rate spike. However, it also means there’s no sense in waiting for dramatically lower rates before buying; sitting on the sidelines could just mean paying more for the house itself if prices tick up next spring. Each buyer’s situation is unique, but generally fall buyers can proceed knowing what they’re dealing with in terms of financing costs, and that predictability is valuable.

4. Sellers: ‘Tis the Season to Motivate (Staging & Incentives Matter): Fall historically brings out the most motivated sellers. If someone lists their home in October or November, they usually need to sell (job relocation, already bought another home, etc.), which means opportunity for buyers. Already we’re hearing of more seller incentives – from home warranties, to covering transfer taxes, to outright price cuts – to get deals done. Sellers who are successful this fall will likely be those who price correctly from the outset and perhaps sweeten the deal (e.g. including some furniture, offering a credit for new appliances, or being flexible with closing timelines). Also, presentation is key: as the weather cools, homes with “cozy” appeal tend to shine. Properties featuring fireplaces, updated heating systems, warm lighting and tasteful autumn décor can emotionally resonate with fall buyers. Many buyers envision spending the upcoming holidays in their new home, so staging a home to feel inviting this time of year can give sellers an edge. Curb appeal also shifts in the fall – well-maintained yards with autumn flowers or foliage, clean gutters, and seasonal decorations (kept moderate and tasteful) can make a home stand out. The bottom line for sellers is that the pool of buyers may be smaller now, but they are serious – so capturing their interest through proper pricing and presentation is crucial. A seller might not get 10 offers like in spring, but getting one solid offer in fall is absolutely achievable if the home is marketed well. In fact, homes that check all the right boxes (great location, move-in ready, and priced right) can still ignite competition. Our local data shows that “hot” listings – those that are turnkey and hit a sweet spot in pricing – can go under contract in around 2 weeks, sometimes at or above asking price. So, there is still a fast lane in the fall market for the best properties.

5. Which Properties Will Move Fast in Fall? Generally, we expect smaller, affordable homes and any highly updated property to be among the quickest to sell this fall. Why? The entry-level segment remains underserved – many renters and first-time buyers are still eager to purchase if they find a home within their budget. Thus, a well-priced townhome, condo, or starter single-family home in Anne Arundel or surrounding areas may still see strong competition and multiple offers even in October or November. Additionally, homes that cater to downsizers or retirees (think one-level living, low maintenance) could move swiftly; many older buyers don’t time moves around school schedules and will act when the right home appears. We also see continued demand for homes with unique features like water views or large lots – those niche buyers are always watching, and if inventory in that category has been thin, a new listing can attract quick interest regardless of season. To drive a quick sale in fall, pricing is paramount. Buyers have more confidence to walk away or wait for price drops now, so the homes that sell fastest will be those that are clearly a good value in their segment. Lastly, it’s worth noting that move-in-ready condition is a huge plus as the year winds down. Many buyers aiming to move in fall want to be settled before the holidays and cold weather, and they may not have the appetite for significant renovations. A home that is clean, repaired, and comes with recent updates (or perhaps comes furnished or with big-ticket items like the hot tub or playset included) can entice buyers to act quickly, knowing they can transition smoothly into their new space.

In essence, the fall 2025 market offers a breather for buyers and an end-of-year window for sellers to make deals – but it’s by no means idle. We anticipate a healthy churn of sales through September, October, and early November, especially for those prime properties and eager buyers who sat out the summer. The market sentiment is cautiously optimistic: buyers are gaining a bit of power back, yet sellers who adapt to the new normal are still achieving excellent prices. Keep an eye on interest rates and new listings in your target area; an unexpected dip in rates or a late flood of listings could spur a burst of activity. But barring surprises, expect a steadier, more methodical real estate season. For buyers, this is the time to capitalize on negotiability and choice, and for sellers, it’s an opportunity to shine by being the best value on the block.

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Sources:

• Housecats Real Estate Market Reports – Greater Annapolis, Southern MD, Eastern Shore, Greater Baltimore (July 2025 data)housecats.co. These reports provide recent sales trends, prices, and inventory indicators for our local markets.

• Maryland REALTORS® Housing Statistics – July 2025 Press Releasethebaynet.com. Statewide perspective on sales volume, price changes, inventory and quotes on market conditions.

• The BayNet / Maryland REALTORS® – Commentary from Maryland REALTORS® President on the current market and housing supply issuesthebaynet.com.

• Patch (Annapolis) – Housing Market Cooling (July 2025)patch.com. Insight on rising contract cancellation rates and buyer sentiment from Redfin analysis.

• Zillow Research – Fall 2025 Market Outlookzillow.com. Analysis of seasonal trends (inventory, pricing, and buyer behavior) suggesting fall advantages for buyers and flattening prices.

• Redfin Housing Data (Annapolis) – Market competitiveness metrics (days on market, sale-to-list ratios, etc.)redfin.com, illustrating how “hot homes” are still selling quickly with multiple offers.

• Local Agent Perspective – Fall real estate trends (Sneffels Realty, 2025)ridgwaycorealestate.com, highlighting what features attract buyers in cooler seasons and how sellers can appeal to fall buyers.