ANNAPOLIS, Md. — Home sales in Maryland continued to cool in May, with just 6,229 homes sold statewide, marking a 10.6% decrease from May 2024, according to the latest data from Maryland REALTORS®.
At the same time, home prices continued their upward climb. The average sales price rose to $523,269, up 2.4%, while the median price increased to $440,000, a 2.3% gain over last year.
While pending sales (homes under contract) climbed to 7,152 units, an increase of 5.4%, the number of new listings dropped significantly—down 17.8% to 7,443 properties—and active inventory dipped slightly by 2.9%. While the 30-year fixed mortgage rate in May grew from 6.76% to 6.89%, it tapered in early June to 6.85%.
“Any relief in interest rates is always welcome, but the ‘lock-in effect’ continues to keep existing homeowners from selling,” said Cheryl Abrams Davis, 2025 President of Maryland REALTORS®. “With so many Marylanders sitting on historically low mortgage rates, they’re hesitant to give that up—keeping inventory low and prices high.”
Maryland’s housing market also contends with structural constraints, notably outdated zoning laws. “Our cities and counties need to move beyond policies that restrict housing to single-family homes on large lots,” Abrams Davis added. “We need to support ‘middle housing’—duplexes, triplexes, cottage clusters, and other neighborhood-scale homes—to increase affordability and options for working families, young professionals, and older adults looking to downsize.”
“We have the tools,” she said. “Now we need the political will to use them.”