ValcoMD Market Conditions Update Baltimore / Washington DC Metros:
June 2025 Housing Market Update: The DC Metro median sales price somehow rose 3.1% to $640,000, pending sales increased 3.5%, new listings marginally rose 0.4%, and showings grew 2.3%, but all else was negative: active inventory escalated 41.6%, closed sales dropped 6.5%, months of supply surged to 2.52, and days on market were an remarkably low 8.
The Baltimore Metro saw similar trends as median sales price increase 2.5% (under the 3% stable benchmark) to $410,000, pending sales modestly rose 1.5%. All else was unfavorable as active inventory exploded 23.6%, showings fell 1.8%, closed sales declined 3.1%, new listings scaled back 6.6%, months of supply continues to grow at 2.06, days on market was also only 8.
The State of Maryland for May 2025 vs 2024 stats saw $440,000 median SP$ grow 2.3% and pending sales rise from 6,783 to 7,152, active inventory marginally fell from 13,627 to 13,230 equating to 2.3 months of inventory vs 2.4, 7,443 new listings fell significantly from 9,060, closed units dropped 10.6% while days on market rose to 9 from 7.
Recent market data across the five contiguous counties above presents a mixed and inconsistent picture, characterized by unique micro-trends. The only consistent trend across all five counties is a decline in new listings. We see an increasing number of homes sold outside the MLS; however, many of these transactions still involve broker participation. Lennar, nation’s largest homebuilder, saw its national average sales price drop 8.7% combined with an average spend of 13.3% for incentives and upgrades for Q2 2025. This could equate to a recent homebuyer with a 90%+ LTV as a short sale candidate unable to compete with builder incentives. We’re seeing more resale listings within new developments, as resales struggle to offer these flexible terms and offerings from builders at competitive price points as renting looms an option as rental values are much stronger. Overall, most local markets have shifted from appreciating to stable conditions, with a few experiencing modest declines using a +/- 3% benchmark. From a brokerage perspective, the market is consolidating around top performers—10% of RE agents now control 43% of total listings. Sellers are prioritizing experience and documented results when selecting professionals to navigate today’s increasingly complex pre and post-sale environments. Users of appraisals should adopt a similar approach in identifying and selecting an appraiser, but cannot due to a lack of centralized data for appraiser performance as anyone can find the top five listing agents in almost any market but cannot do the same in an appraiser search. Why?? Approximately 30% of appraisers use mobile technology, and even fewer utilize advanced tools like LiDAR. We have been leveraging these technologies for years and I cannot think of a reason not to. We will be attending the Valuation Expo in August to explore upgrades for our technologies and other key topics. Look me up if you are going! We are actively expanding our capacity to meet expected opportunities in 2026+ We recently welcomed Garrett to the team and plan to hire one to two additional staff in Q4 2025
Source: Bright MLS and Associated State, Local RE Boards, Relitix, ResiClub June 22, 2025
The GSEs announced that they will require appraisals to contain a Market Area analysis to support time adjustments and market conditions in Q1 2025. This does NOT have to be complex or time consuming, but that does not minimalize its importance. We have been providing similar information in every report since 2020. We are not statistical or analytics experts. However, one of the most important roles of the local appraiser is to provide data and comment on local market stats and trends. A robot can pull the data and provide the stats, but only the local pro can reconcile the data and guide the reader to see the issue(s). A doctor returning an x-ray or scan from a technician, and not providing an interpretation is worthless to the patient.