The Maryland housing market in January 2025 presents a complex landscape characterized by contrasting trends in pricing, sales activity, and inventory levels. The data reveals a market in transition, with some indicators showing growth while others reflect a cooling period.

In terms of pricing, the Median Sales Price in Maryland stands at $411,000, marking a decline of 4.2% year-over-year. This decrease suggests a potential softening in buyer demand or a shift in the types of homes being sold. Conversely, the Median List Price has increased by 8.1% to $422,800, indicating that sellers are optimistic about the market's potential or are adjusting to higher costs. The median Price Per Square Foot has risen by 3.3% to $218, while the Median List Price per square foot has increased by 6.5% to $227, further highlighting the disparity between seller expectations and actual sales outcomes.

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. This uptick in sales suggests a healthy demand for housing despite the decline in Median Sales Prices. 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 overall inventory increase of 7.7%, bringing the total to 9,384 homes. The Months of Supply have also grown by 10% to 2.4 months, suggesting a shift towards a more balanced market.

The Median Days on Market have increased by 4% to 46 days, reflecting a slight slowdown in the pace at which homes are being sold. 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%, suggesting that bidding wars may be less common than in previous years.

Price Drops have increased by 1.4% to 24.1%, indicating that sellers may be adjusting their expectations to align with market realities. Additionally, the percentage of homes going off the market within two weeks has decreased by 1.8% to 39.3%, further supporting the notion of a cooling market.

Overall, the Maryland housing market in January 2025 is characterized by a divergence between seller expectations and buyer realities. While sales activity remains robust, the decline in Median Sales Prices and the increase in inventory suggest a market that is gradually shifting towards equilibrium. Buyers may find more opportunities as the market adjusts, while sellers may need to recalibrate their strategies to align with current conditions.