How Ya Living. Mid-Year Real Estate Review and Strategy
Mid-Year 2025 Housing Outlook: A Baltimore Perspective
Rob Wainwright, Berkshire Hathaway PenFed Realty
The 2025 housing market continues to present challenges across the country — and Baltimore is no exception. While higher mortgage rates and sustained home prices have slowed movement for many, savvy buyers and sellers are still making strategic moves. Inventory is gradually increasing in the Baltimore metro area, giving motivated buyers more options while offering sellers a chance to act if life circumstances — not just mortgage math — demand it. The national narrative might suggest hesitancy, but locally, the demand for well-priced homes in desirable neighborhoods like Hampden, Catonsville, and Towson remains steady.
Despite national concerns about falling home prices, most experts predict modest price growth of 1.5–2% nationally for 2025, according to aggregated forecasts from Fannie Mae, the National Association of Realtors, and others (Keeping Current Matters, 2025 Mid-Year Market Forecast). Baltimore, with its steady job market and relative affordability compared to coastal markets, is expected to mirror or slightly outperform these national gains. While some micro-markets may experience temporary dips due to rising inventory, these are minor when compared to long-term growth. In fact, home values in many metro areas — including Baltimore — have increased over 45–55% since 2020, based on Federal Housing Finance Agency (FHFA) and Zillow data cited in the KCM forecast. So even a short-term 2–3% correction barely makes a dent in long-term equity gains.
Mortgage rates are projected to hover in the 6.4–6.6% range through early 2026, according to Fannie Mae, Wells Fargo, and the Mortgage Bankers Association (KCM Forecast, July 2025). While that’s higher than the record lows of recent years, they’ve been relatively steady — and trying to time a better rate often results in missed opportunities. A recent Realtor.com survey cited by KCM found that nearly 79% of homeowners considering selling are doing so out of necessity — not because they think the rates are perfect. Here in Baltimore, lifestyle-driven moves like growing families, downsizing, or job relocations continue to fuel activity, even with today's rates.
🔑 Bottom Line
Whether you're buying your first home, moving into something that better fits your life today, or considering cashing in on years of equity growth, the Baltimore market still holds strong opportunities. Real estate success right now isn’t about waiting — it’s about working with someone who understands the market inside and out.
📲 Let’s talk about how the current numbers affect your specific neighborhood and goals. Whether you’re in Federal Hill, Mount Washington, or anywhere in between, I’m here to help you move with confidence. Reach out today for a custom market report or a no-pressure strategy session.
Rob Wainwright, Berkshire Hathaway Home Services PenFed Realty
rob.wainwright@penfedrealty.com