Baltimore Real Estate Market Wrap-Up: 2025 Trends & 2026 Predictions

As we close out 2025, the Baltimore real estate market continues to prove its resilience. From historic row homes in Baltimore City to suburban neighborhoods throughout Baltimore County, buyers and sellers alike have navigated shifting interest rates, changing inventory levels, and evolving lifestyle priorities.

So what defined the Baltimore housing market in 2025 and what should homeowners, buyers, and investors expect in 2026? Let’s take a closer look…

2025 Baltimore Real Estate Market Recap

Baltimore City: Steady Demand with Neighborhood Variation

In Baltimore City, 2025 was a year of stabilization rather than rapid growth. While price increases cooled compared to earlier post-pandemic years, demand remained consistent, especially in well-located neighborhoods.

Key 2025 City Trends:

  • Strong buyer interest in walkable areas like Canton, Federal Hill, Hampden, and Locust Point

  • Continued momentum in revitalizing neighborhoods near transit, hospitals, and universities

  • Rowhomes with updated kitchens, outdoor space, and parking sold faster than average

  • Investors remained active, especially in areas seeing redevelopment and rental demand

Affordability compared to other East Coast cities continued to make Baltimore City attractive to first-time buyers and remote workers.

Baltimore County: Suburban Stability & Lifestyle Appeal

Baltimore County real estate remained highly competitive in 2025, particularly for single-family homes in established school districts.

Key 2025 County Trends:

  • Consistent demand in Towson, Lutherville/Timonium, Perry Hall, White Marsh, and Catonsville

  • Limited inventory kept prices stable, even as buyer activity slowed slightly

  • Move-up buyers prioritized space, home offices, and proximity to commuter routes

  • Condos and townhomes gained popularity as affordability options

The county’s blend of suburban living with easy access to Baltimore City continued to attract families and professionals alike.

Interest Rates & Buyer Behavior in 2025

Mortgage rates fluctuated throughout 2025, creating a more intentional buyer pool. Buyers were:

  • More price-sensitive

  • More willing to negotiate

  • Focused on long-term value rather than short-term gains

Sellers who priced realistically and presented their homes well still achieved strong results.

2026 Baltimore Real Estate Market Predictions

Looking ahead to 2026, the Baltimore housing market is expected to remain balanced and opportunity-driven, rather than volatile.

Prediction #1: Gradual Price Growth, Not Spikes

Home values in both Baltimore City and County are projected to see modest appreciation, rather than dramatic jumps. This favors:

  • Buyers seeking stability

  • Sellers focused on long-term equity

  • Investors targeting cash flow over speculation

Prediction #2: Inventory Will Improve Slightly

More homeowners are expected to list in 2026 as:

  • Rate uncertainty eases

  • Life changes (downsizing, job moves) drive decisions

  • New construction and renovations add options in select areas

However, well-priced homes in desirable neighborhoods will continue to move quickly.

Prediction #3: City Living Will Attract Younger Buyers

Baltimore City is likely to see increased interest from:

  • First-time buyers priced out of surrounding metro areas

  • Remote and hybrid workers

  • Buyers seeking walkability and character

Neighborhoods near waterfronts, parks, and transit corridors are expected to outperform the broader market.

Prediction #4: Baltimore County Remains a Safe Bet

In 2026, Baltimore County will continue to appeal to:

  • Families seeking space and schools

  • Buyers relocating from higher-cost regions

  • Long-term homeowners prioritizing stability

Single-family homes and townhomes in move-in-ready condition should remain in high demand.

What This Means for Buyers & Sellers in 2026

For Buyers:

  • More choices than in recent years

  • Less competition, but still a need to act decisively

  • Opportunities in both city and county markets

For Sellers:

  • Pricing strategy matters more than ever

  • Homes that are staged, updated, and well-marketed will stand out

  • Local expertise will be key to maximizing value

My Final Thoughts…

As we wrap up 2025, one thing is clear: Baltimore’s real estate market remains strong, diverse, and full of opportunity. Whether you’re considering buying in the city, selling in the county, or investing anywhere in between, 2026 is shaping up to be a year defined by smart decisions rather than speculation.

If you’re thinking about making a move in the Baltimore City or Baltimore County real estate market, now is the perfect time to start planning!

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