The Maryland housing market in February 2025 presents a complex landscape characterized by both rising prices and declining sales activity. The Median Sales Price for homes in Maryland has increased to $412,700, marking a modest year-over-year (YoY) growth of 0.8%. Meanwhile, the Median List Price has risen more significantly by 3.7% YoY, reaching $437,200. This indicates a growing gap between seller expectations and buyer willingness, which could be contributing to the observed market dynamics.

Price Per Square Foot metrics further highlight the upward trend in property values. The median Price Per Square Foot has increased by 3.1% YoY to $222, while the Median List Price per square foot has surged by 6.5% YoY to $232. This suggests that sellers are pricing properties more aggressively, possibly in response to increased demand for limited inventory.

Despite the rising prices, the number of Homes Sold has decreased by 7.5% YoY, with only 3,972 transactions completed. Pending Sales have also dropped significantly by 14.9% YoY, totaling 4,999. This decline in sales activity could be attributed to the higher price points, which may be deterring potential buyers. Additionally, New Listings have decreased by 7.1% YoY to 5,373, further constraining the market.

Inventory levels, however, have increased by 7.9% YoY, reaching 9,823 homes. This rise in inventory, coupled with a 40% YoY increase in Months of Supply to 2.5 months, suggests that the market is gradually shifting towards a more balanced state. The Median Days on Market have also increased by 8% YoY to 42 days, indicating that homes are taking longer to sell.

The average sale to list ratio has slightly decreased by 0.5% YoY to 100%, reflecting a minor adjustment in buyer and seller expectations. The percentage of Homes Sold above list price has also declined by 1.5% YoY to 37%, suggesting that competitive bidding may be easing. Additionally, the proportion of Price Drops has increased by 1.6% YoY to 23.2%, indicating that sellers are becoming more flexible in their pricing strategies.

Finally, the percentage of homes going off the market within two weeks has decreased by 4.2% YoY to 47.9%, further illustrating the cooling pace of the market. Overall, the Maryland housing market in February 2025 is characterized by rising prices amidst declining sales activity, with signs of a gradual shift towards a more balanced market environment.