The Maryland housing market in January 2025 presents a complex landscape characterized by contrasting trends in pricing, sales, and inventory. The Median Sales Price has decreased by 4.2% year-over-year, settling at $411,000. This decline contrasts with the Median List Price, which has risen by 8.1% to $422,800, indicating a potential gap between seller expectations and buyer willingness.

Price Per Square Foot metrics further illustrate this divergence. The median Price Per Square Foot has increased by 3.3% to $218, while the Median List Price per square foot has seen a more significant rise of 6.5%, reaching $227. This suggests that while sellers are optimistic about pricing, buyers are negotiating more aggressively, leading to a decrease in the actual sales price.

Sales activity in Maryland shows a mixed picture. The number of Homes Sold has increased by 5.9% year-over-year, totaling 3,934 units. However, Pending Sales have decreased by 10.1%, indicating a potential slowdown in future transactions. New Listings have risen by 5.7% to 4,955, contributing to an inventory increase of 7.7%, now at 9,384 homes. This rise in inventory, coupled with a 10% increase in Months of Supply to 2.4 months, suggests a shift towards a more balanced market, albeit still favoring sellers slightly.

The Median Days on Market have increased by 4% to 46 days, reflecting a slower pace in the market. The average sale to list ratio remains unchanged at 99.8%, indicating that homes are generally selling close to their asking prices. However, the percentage of Homes Sold above list price has decreased by 1.8% to 31.3%, further highlighting the cautious approach of buyers.

Price Drops have become more common, with a 1.4% increase year-over-year, now affecting 24.1% of listings. Additionally, the percentage of homes going off the market within two weeks has decreased by 1.8% to 39.3%, suggesting that homes are taking longer to sell.

Overall, the Maryland housing market in January 2025 reflects a period of adjustment, with sellers adjusting to more realistic pricing and buyers exercising greater caution. The increase in inventory and New Listings, combined with a slower pace of sales, indicates a market that is gradually moving towards equilibrium.