April 2025 Housing Market Report: A Shifting Landscape in Maryland-DC
The April 2025 housing market across the Maryland and DC Metro region paints a portrait of contradiction: inventory surged, buyer activity softened, and yet home prices pressed higher into record territory. This complex dynamic reflects a shifting landscape influenced by economic turbulence, workforce reductions, and a widespread push for return-to-office policies.
As the spring market unfolds, buyers and sellers find themselves navigating unfamiliar territory, where more choices and longer market times coexist with rising prices and regional volatility.
Inventory Surge: A Turning Point for Supply
The most defining trend of April was a nearly 50% year-over-year increase in active listings. With many more homes on the market by month’s end, buyers suddenly have options that were virtually nonexistent in the hyper-competitive climate of recent years. This expansion of supply is largely attributed to broader economic pressures and job-related relocations.
This dramatic uptick in inventory has begun to reshape the negotiation landscape, subtly shifting leverage away from sellers,though not enough to bring prices down just yet.
Persistent Caution
Despite the newfound abundance of homes, buyer enthusiasm has tempered. New pending sales were down 6.6% from April 2024, revealing that elevated mortgage rates, job insecurity, and broader market hesitancy are suppressing demand.
Prices Press Higher
In what may seem counterintuitive, median home prices hit a new record in April. The regional median reached $655,215,up 2.4% year-over-year,underscoring how limited housing availability in prior years continues to ripple through pricing.
This resilience signals that while demand has softened, sellers are still commanding strong prices,especially in premium or well-located properties.
Time on Market & Months of Supply: A Market in Transition
Homes are lingering slightly longer: the median days on market ticked up by 1 day overall, with condos seeing the most pronounced slowdown (+4 days). Correspondingly, months of supply increased to 2.36, up 0.74 months year-over-year,signaling movement toward a more balanced market.
While these numbers remain seller-friendly by historical standards, they mark a shift from the frantic pace of the past three years.
What It All Means
The April 2025 data reflects a housing market rebalancing rather than retreating. Inventory is rising, giving buyers breathing room. Prices remain firm, sustained by years of under-supply and cautious sellers. And while economic factors like job security and interest rates weigh heavily, they haven’t yet tipped the scales into a buyer’s market.
Looking Ahead: What to Watch
As we move deeper into the spring and summer selling seasons, several key questions will shape the trajectory of the market:
- Will mortgage rates drop meaningfully enough to stimulate buyer demand?
- Will the surge in inventory stabilize or continue to grow?
- How will job market uncertainty,especially in government-heavy areas,affect buyer behavior?
One thing is clear: in 2025, the Maryland-DC Metro housing market is no longer a sprint. It’s a shifting landscape that requires a strategic game; where timing, property type, and location matter more than ever.
By Dan Krell
Copyright © 2025
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