Buy a House in Maryland in 2025: Is it a good time?
Buy a house in Maryland in 2025—that’s one of the most common questions homebuyers are asking this year. With prices settling and mortgage rates shifting, timing your move feels more strategic than ever. In this guide we will go over the most important factors for you to consider.
Should you wait or jump in now?
Let’s explore what’s really happening in Maryland’s market and what it means for you.
What is happening in Marylands Housing Market in 2025?
Maryland’s real estate market has seen changes in affordability, inventory, and buyer competition over the past two years. Understanding what’s driving the market right now is key to making a smart move.
Home Prices are Stabilizing
After rapid appreciation between 2020–2022, home prices in most counties have started to stabilize. According to the Maryland REALTORS® January 2025 report, median home prices statewide increased by only 1.8% year-over-year.
| County | Median Price (Jan 2024) | Median Price (Jan 2025) | YoY Change |
|---|---|---|---|
| Anne Arundel | $430,000 | $437,500 | +1.7% |
| Baltimore | $310,000 | $316,000 | +1.9% |
| Harford | $350,000 | $356,000 | +1.7% |
| Montgomery | $550,000 | $559,000 | +1.6% |
| Prince George | $405,000 | $412,000 | +1.7% |
Inventory is still tight
Maryland continues to struggle with low housing inventory.
In January 2025, there were 23% fewer listings compared to the same month in 2023.
Fewer homes on the market means buyers must act quickly and compete in certain areas.
Mortgage Rates Have Improved Slightly
Rates peaked in late 2023 but have slightly dropped in Q1 2025.
As of February 2025, 30-year fixed mortgages are averaging around 6.4%, according to Freddie Mac.
This slight dip has reignited buyer interest, but affordability still remains a challenge.
To explore personalized buyer services, visit the KN Home Group Buyers Page
Is It a Good Time to Buy
a House in Maryland?
The answer depends on your financial readiness, timeline, and long-term goals.
Let’s evaluate the pros and cons:
Reasons Why It Could Be a Smart Move
- Stable prices: Low appreciation means you’re less likely to overpay.
- Less competition: Higher rates keep some buyers on the sidelines.
- Equity potential: If rates drop again in 2026, today’s buyers can refinance.
When It Might Be Better to Wait
- Limited inventory: Fewer options mean fewer chances to negotiate.
- Affordability: Monthly payments are still higher than pre-pandemic levels.
- Job instability or life changes: If you're unsure of your future plans, it might be wise to hold off.
Renting vs Buying in 2025
For many Maryland residents, the choice between renting and buying comes down to more than just monthly payments. Long-term financial benefits, equity growth, and market timing all play a role.
Here's how average rent compares to estimated monthly mortgage payments in 2025:
| County | Avg Monthly Rent | Median Monthly Mortgage (Est.) |
| Anne Arundel | $1,950 | $2,320 |
| Baltimore | $1,750 | $2,100 |
| Harford | $1,800 | $2,180 |
| Montgomery | $2,450 | $2,950 |
| Prince George | $2,100 | $2,600 |
While buying may cost more upfront, it allows homeowners to build long-term wealth, avoid rent hikes, and benefit from tax advantages.
Factors to Consider
Before Buying a House in 2025
Buying a home in 2025 requires more than checking prices. These key elements will shape your success.
Your Credit and Pre-Approval Status
Higher credit = better loan terms.
Start by getting pre-approved to know your buying power.
Down Payment and Savings
Make sure you have funds not just for the down payment (typically 3.5% to 20%), but also for closing costs, moving expenses, and home maintenance.
Local Market Trends
Some areas in Maryland are more competitive than others.
For example, Montgomery County remains high-demand, while Harford offers more flexibility.
Choosing the Right City Based on Your Needs
Every family has unique needs. Below are some helpful decision points:
Are You Buying a Home?
If so, focus on affordability and access to properties benefits. Aberdeen and Edgewood are ideal places to start your homeownership journey.
Explore Home Buying Help → Click here.
Are You Planning to Sell?
If resale value matters, consider Havre de Grace or Bel Air—both have strong local housing markets.
Check Out Our Seller Resources → Click here.
Helpful Resources for
Maryland Buyers
Here are some trusted tools and links designed to homebuyers to help you prepare:
Maryland Mortgage Program (MMP) – Explore down payment assistance.
https://mmp.maryland.govHUD Home Buying Guide – Learn the full process from start to closing.
https://www.hud.gov/buying
FAQs: Buying a House
in Maryland in 2025
1) Are home prices expected to drop in Maryland in 2025?
No major drop is expected. Most counties show stable or slight appreciation.
2) What’s the average down payment needed?
Typically 3.5% for FHA loans or 0% for VA loans. Conventional loans often require 5–20%.
3) How much do I need to earn to afford a $400K home?
Around $85K/year depending on debt and down payment.
4) Can I use a VA loan in Maryland?
Yes. Maryland has a strong military presence and many VA-approved homes.
5) Are there grants for first-time buyers?
Yes. The Maryland Mortgage Program offers down payment and closing assistance.
6) What credit score do I need to qualify for a mortgage?
Minimum 580 for FHA, but 620+ is ideal for better terms.
7) Is it cheaper to buy a home than rent in Maryland?
Monthly cost may be higher, but you build equity and avoid rent hikes.
8) Should I buy now or wait for lower rates?
It depends on your readiness. You can refinance if rates drop later.
9) Do I need a real estate agent to buy?
It’s not required, but highly recommended to protect your interests.
10) What’s the first step to buying a home in 2025?
Get pre-approved for a mortgage and talk to a trusted real estate professional.
Use our FREE Mortgage Calculator!
Click here to access our free online calculator tool.
Final Thoughts on Buying a House in Maryland in 2025
Buying a house in Maryland in 2025 can be a great decision—but only if you’re financially prepared and understand the current landscape.
With stabilizing prices, improving rates, and long-term equity potential, many buyers are choosing to act now rather than wait. Still, it’s important to evaluate your own situation.
Partnering with a KNOWLEDGEABLE and TRUSTED Real Estate Agent will make your experience smoother, more strategic, and ultimately more rewarding.
Find Your Perfect Home TODAY!
Our team is ready to help you find the dream home that matches all your needs. Start your home search professionally, contact KN Home Group today. Click here to contact us now and start finding your dream home with homebuying experts!