Baltimore Housing Market: Trends and Forecast 2025-2026

Thinking about buying or selling a home in Baltimore? The Baltimore housing market is definitely doing its own thing right now, and looking ahead to 2025, it seems like things are shaping up to be pretty stable, with a slight uptick rather than a dramatic crash or boom.

Baltimore Housing Market Trends: What's Happening Now in 2025?

Let's dive into what's actually going on with homes in Baltimore right now. I've been keeping a close eye on this, and I've got some solid info from Realtor.com that really paints a picture of the current situation. It’s not always what you see on the news, so let’s break it down.

Home Prices: A Gentle Climb

Good news for sellers, and something for buyers to consider: home prices in Baltimore are nudging upwards. In September, the median listing price was around $247,000. This might not sound like a huge leap, but it's a step up from the month before. What’s really interesting is how this compares to the rest of the country. When we look at the price per square foot, Baltimore actually saw a 0.6% increase in September. This is pretty neat because nationally, the price per square foot decreased by 0.8%. So, while the whole country might be seeing a slight dip in that metric, Baltimore is holding its own and even growing a bit faster.

Housing Inventory: More Homes to Choose From

This is a big one for anyone in the market. Good news for buyers – there are more homes available! In September, the number of housing inventory or homes for sale in Baltimore jumped by 10.0% from the previous month. That’s a bigger bump than you’d normally see this time of year. Even better, compared to last year, there are a whopping 40.1% more homes on the market. This is a significant increase and means buyers have more choices and potentially less pressure to jump on the very first thing they see. Nationally, inventory is also up, but Baltimore’s growth is definitely standing out.

Here’s a quick look at how Baltimore’s inventory grew:

Month	Homes for Sale (Baltimore)	Change from Previous Month	Change from Last Year
September	2,986	+10.0%	+40.1%

Homes Selling Pace: Steady as She Goes

While there are more homes on the market, they are selling at a pretty similar pace to last year. Homes in Baltimore are taking an average of 44 days to sell. This is the same as the month before and even a bit quicker than last year, by two days. Nationally, homes are taking longer, with an average of 62 days on the market in September. This suggests that even with more homes available, the Baltimore housing market is still moving along at a decent clip. Buyers are finding what they want, and sellers are getting their homes sold.

Is it a Buyer's or Seller's Housing Market?

Right now, it feels like we're leaning more towards a balanced housing market in Baltimore, or maybe slightly favoring buyers due to the increased inventory. While prices are rising, the increased number of homes available gives buyers more negotiating power and less of that frantic feeling. Sellers still have an advantage because prices aren't falling, but they need to be realistic about pricing and prepare their homes well, as buyers have more options.

Baltimore Housing Market Forecast: What's Next for 2025 and 2026?

Okay, so we know what's happening now. But what about the future? Peeking into the crystal ball for the Baltimore housing market gives us some interesting insights, based on forecasts from experts.

Home Value Projections: Modest Growth Ahead

Looking at the average home value in the Baltimore-Columbia-Towson area, it’s been steadily increasing. Zillow reports it's currently around $396,874, which is up 2.1% over the past year. This tells us that even with some national fluctuations, the Baltimore region's home values have been on a positive, though not explosive, trajectory.

Now, let's break down Zillow's specific forecast for the Baltimore housing market:

Forecast Date	Predicted Change (%)
October 2025	+0.1%
December 2025	+0.3%
September 2026	+0.5%

This forecast suggests a very slow and steady increase in home values for Baltimore. We're talking about small percentage gains, not the huge jumps we saw a couple of years ago. This indicates a healthy, sustainable growth pattern.

Comparing Baltimore's Forecast to Other Maryland Regions

It’s always helpful to see how Baltimore stacks up against its neighbors within Maryland. Here's what Zillow predicts for other areas:

RegionName	BaseDate	October 2025	December 2025	September 2026
Baltimore, MD	30-09-2025	0.1%	0.3%	0.5%
Hagerstown, MD	30-09-2025	0.4%	0.9%	2.9%
California, MD	30-09-2025	0.3%	0.5%	0.5%
Cumberland, MD	30-09-2025	0.3%	0.8%	2.0%
Easton, MD	30-09-2025	0.1%	0.3%	1.6%
Cambridge, MD	30-09-2025	0.2%	0.6%	1.6%

As you can see, Baltimore’s forecast for modest growth is quite different from places like Hagerstown or Cumberland, which are predicted to see more significant increases. This highlights that the Baltimore housing market is on its own path.

National Housing Market Outlook: A Brighter Horizon?

What's happening across the U.S. also plays a role. Zillow and NAR economists have some predictions that paint a generally optimistic picture for the nation, which can influence local markets like ours.

Zillow's Key Predictions for the US:

• Home Value Growth: After a bit of a flat spell, home values are expected to recover in 2026. They predict annual growth to reach a peak of nearly 1.9% by August 2026.
• Home Sales: The number of homes sold is expected to finish 2025 at 4.07 million, which is a bit better than 2024.
• Rents: Rent growth is anticipated to continue cooling down, meaning it won't be rising as fast as in recent years.

NAR Chief Economist Lawrence Yun's Optimistic Forecast for the US:

Lawrence Yun from NAR sees “brighter days ahead.” His key points include:

• Existing Home Sales: Expected to rise by 6% in 2025 and jump another 11% in 2026. This means more people are likely to be buying and selling existing homes.
• New Home Sales: Projected to increase by 10% in 2025 and 5% more in 2026. This is great for increasing the overall supply of homes.
• Median Home Prices: Prices are predicted to keep going up, but at a more manageable pace: 3% in 2025 and 4% in 2026.
• Mortgage Rates: These are seen as a big deal! They're expected to average 6.4% in the second half of 2025 and then dip to 6.1% in 2026. Lower mortgage rates make it more affordable for people to buy homes.

So, Will Home Prices Drop in Baltimore? Can it Crash?

Based on everything I'm seeing and the forecasts from reputable sources like Realtor.com and Zillow, a significant crash in Baltimore home prices is highly unlikely. The current trends show stability and modest growth, not an overheated market that’s about to burst. The increased housing inventory is a healthy sign, helping to balance the market and prevent prices from going sky-high and then plummeting.

While a nationwide recovery is predicted for home values, Baltimore's own forecast from Zillow points to continued, albeit slow, appreciation. The rising home sales numbers nationally, combined with potentially lower mortgage rates in the future, will likely keep demand steady in Baltimore.

A Look Ahead: 2026 and Early 2027

If the national forecasts hold true, and given Baltimore's current stable trends, I anticipate the Baltimore housing market will continue its gentle upward trajectory through the end of 2026 and into early 2027.

• End of 2026: We'll likely see continued, modest appreciation in home prices. Home sales volume should remain healthy, possibly seeing a slight boost as more buyers feel confident in the market and potentially lower mortgage rates become available. The housing inventory might stabilize or even decrease slightly if demand picks up more significantly.
• Early 2027: The trend of steady appreciation is expected to continue. If mortgage rates have indeed dipped, we could see an increase in buyer activity, making it a slightly more competitive market for buyers. However, with the current increased housing inventory, it's unlikely to reach the intense seller's market conditions of a few years ago.

In my professional opinion, while no market is ever completely predictable, the Baltimore housing market is in a good place. It’s not experiencing the extreme highs or lows seen elsewhere, which is often a sign of a more sustainable and healthy market. For buyers, it means opportunities with more choice, and for sellers, it means a good chance to get a fair price for their home without the fear of the market collapsing.

Should You Invest in the Baltimore Real Estate Market?

Baltimore is a city with a rich history and culture, and it's also becoming an attractive location for real estate investors. With the rise of Baltimore's economy, population growth, and real estate market, it's no wonder that more and more investors are considering Baltimore for their next investment opportunity. If you're wondering whether Baltimore is a good place to invest in real estate, you've come to the right place. In this section, we'll take a look at the top eight reasons why investing in Baltimore could be a smart move for your real estate portfolio.

• Affordable Real Estate Prices: Baltimore is known for its affordable real estate prices, especially when compared to other major cities in the U.S. Investors can purchase properties for a fraction of the price they would pay in cities like New York, Los Angeles, or San Francisco. Additionally, Baltimore's real estate market has been on an upward trend over the past few years, making it a great time to invest.
• Strong Rental Market: Baltimore's rental market is thriving due to a combination of factors, including a growing population and a relatively low cost of living. Investors can take advantage of this by purchasing properties and renting them out to tenants. Additionally, many large companies are headquartered in Baltimore, which can provide a steady stream of potential renters.
• Growing Population: Baltimore's population has been steadily increasing over the past few years, with projections indicating that this trend will continue. A growing population means more demand for housing, which can drive up property values and rental prices. This makes it an attractive option for real estate investors.
• Diverse Economy: Baltimore's economy is diverse, with a variety of industries driving its growth. This includes healthcare, technology, finance, and education. A diverse economy can provide stability for real estate investors, as it is less likely to be affected by downturns in any one industry.
• Proximity to Major Cities: Baltimore is located within a few hours' drive of several major cities, including Philadelphia, Washington D.C., and New York City. This makes it an attractive location for people who work in these cities but want to live in a more affordable area. As a result, the demand for housing in Baltimore is likely to remain strong.
• Historic Charm: Baltimore is known for its historic architecture and charm. Many of its neighborhoods have a unique character and appeal to renters and buyers alike. This can make it easier to attract tenants and can also help drive up property values.
• Access to Higher Education: Baltimore is home to several prestigious universities, including Johns Hopkins University and the University of Maryland. This can attract students and faculty members who need housing, as well as researchers and other professionals who work at these institutions.
• Investment Incentives: The city of Baltimore offers a variety of incentives to real estate investors, including tax credits and exemptions. Additionally, there are several programs designed to encourage investment in certain areas of the city. These incentives can help investors maximize their returns and make Baltimore an even more attractive option for investment.