Maryland Housing Market 2023 Report

Hannah Griffith
14 min read
January 18, 2023
housing market maryland

What’s the Maryland Housing Market Like?

Home prices in Maryland have appreciated 63.3% lower than the national level. Looking back three years at the median price in October 2019 compared to October 2022, prices have increased 25.4% in Maryland VS 35.8% nationwide. 

As of October 2022, the median price for a home in the state was $378,600, which is up 1.8% above last year’s median price. Comparing prices over the last three years, we can see they have decreased -9.1% from the peak of $416,700 in Jun-2022. 

Sales volume has also decreased recently. In October 2022, there were 6,031 homes sold in the state of Maryland, a decrease of -15.7% from the previous month. 

Comparing year-over-year, we saw a decrease of -34.6% in sales from October 2021, when there were 9,217 home sales.

The number of sales peak was 11,327 sales in Jun-2021; compared to October 2022’s numbers, we are down -46.8% in the number of homes sold from the peak of the last three years.

It is clear that the recent steep rise in mortgage rates has curved sales activity and shrunk affordability, and the result has been a drop in home prices in Maryland.

Maryland house prices

How Does The Maryland Housing Market Compare to the National Housing Market? 

The Maryland housing market is similar to other markets because supply and demand drive housing prices. Mortgage rates also similarly impact Maryland as the rest of the nation. 

Maryland’s home prices and sales numbers have begun to slow down along with the rest of the country. Differences in the regional economy of some of Maryland’s metro areas make those markets more vulnerable and others more resilient to the current economics. 

The current median price of homes in Maryland is $378,600 compared to the national median sales price of $397,549. Over the past three years, the median price of homes in Maryland has increased by 25.4% compared to the national average of 35.7%

Maryland Metro Areas With The Hottest Housing Markets 

The state of Maryland has seen moderate growth in housing demand in recent years; consequently, prices had also gone up at a good pace.  Some areas within the state have outperformed others, though.  We will look at the cities with the highest increase in the median price year over year. 

The top markets with the highest appreciation rate:

  1. Crofton
  2. Cumberland
  3. Centreville
  4. Potomac
  5. Edgewood


Crofton is a suburb of Baltimore and has a population of 29,482. It is one of the best places to live in Maryland. Residents in Crofton enjoy a sparse suburban vibe, and most own their homes. There are numerous restaurants and parks in Crofton. In Crofton, which has a large population of families and young professionals, people tend to hold moderate political views.

Crofton’s home prices have been doing quite well over the last few years; in fact, Crofton topped the list of cities in Maryland with the largest increase in prices in 2022 with an increase of 31.3% from the prior year.  For 2022, October’s median price was $432,500.

In October of 2022, there were 23 homes sold in Crofton, down 21.7% from the same period in 2021.

The median days on the market in October 2022 was 28, which indicates a seller’s market by today’s standards. Compared to October 2021, the median days on the market is up 21.7% compared to October 2022.


Cumberland in Allegany county has a population of 19,495 people. Residents in Cumberland enjoy a dense suburban feel, and most own their homes. The region has four distinct seasons: hot, humid summers and moderate winters. The three economic pillars are coal mining, diverse manufacturing (railroad equipment, fiberglass boats, and children's apparel), and outdoor recreation.

The Cumberland Real Estate market is currently somewhat competitive. In October 2022, there were 31 homes sold with a median price of $133,000. The median home price in Cumberland has increased 29.8% from October of 2021, while the number of homes sold was 31, a -22.5% decrease compared to the same month the year before.

The median days on the market in October 2022 was 38, and it’s down -15.6% compared to Sept 2021.  


Centreville is in Queen Anne's County with a population of 4,829. Living in Centreville presents citizens with a sparse suburban feel. It is one of the best places to live if you want to spend your time boating or fishing on the water. Centreville is located at the head of the Corsica River and has long been a significant trading hub. Nowadays, locals spend a lot of time on the waterfront, partaking in various activities.

Centreville is considered a somewhat competitive market right now. In October 2022, there 22 homes were sold with a median price of $133,000. The median price in Centreville was up 29.8% over October of 2021, while the number of homes sold was down -21.4% compared to the same period in 2021.

The median number of days on the market for October 2022 was 45 days which is up 4.7% from October of 2021.  


Potomac is a suburban community located about 14 miles northwest of Washington. The population was 46,256, and the summers in this region are hot and humid, and winters are often mild to chilly.

Compared to other communities near the Beltway, Potomac does not have a balanced distribution of residential and business properties. Instead, the Potomac area is devoted to big houses with roomy lawns, which makes it even more peaceful and soothing for its residents, especially those trying to get away from Washington, D.C.hustle.  

The real estate market in Potomac is considered somewhat competitive. There were 35 homes sold in Oct 2022, with a median price of $1,240,000 .The median price in Potomac had an increase of 24.6%from Oct 2021, while the number of homes sold was down -38.6% compared to the same period last year. 

The median number of days on the market for Oct  2022 were 24 days which is down -29.4% to the same month in 2021, 


Edgewood is in Harford County, with a population of 25,065. This census-designated place (CDP) has a total area of 17.9 square miles – 17.8 square miles of land and 0.2 square miles of water. Edgewood residents enjoy a quiet suburban atmosphere. 

The city's climate is warm, muggy, and wet in the summers; the winters are very cold, snowy, and windy.

Edgewood is currently a very competitive market. In Oct  2022, 20 homes were sold with a median price of $228,950. The median price in Edgewood saw an increase of 22.4% over Oct 2021, while the number of sales was down -33.3% compared to the same month in 2021.

The median number of days on the market for Oct 2022 was 26, which is an increase of 22.4% compared to the same month last year.

Higher Mortgage Rates Could Slow Price Growth in Maryland

How will interest rates affect the Maryland housing market? We are already experiencing the impact of rising interest rates across the nation. Price growth in Maryland has been flattening or on a slight decline for several months in 2022. However, Maryland is such a high-demand destination that it may fare better than many other areas of the country.

As of mid-October 2022, the 30-year fixed rate mortgage is above 7% on average. That represents a 133% increase in mortgage rates in less than nine months. The Feds are on a “no holds barred” approach to curve inflation, and interest rate hikes have become the norm over the last several Fed meetings. Unfortunately, it seems that rate hikes are not done. We anticipate at least another rate increase before the year ends. 

Key Market Stats for the Maryland Housing Market: 

As of the latest compiled housing report for October 2022.

Current ValueLast YearChange YOY
Median Sales Price$378,600$371,900Up 1.8%
Number of sales6,0319,217Down -34.6%
Median Days On The Market3224Up -9.1%
Number of homes available19,86724,079Down  -17.5%
Months' supply of inventory21Up 100.0%
% of homes sold above list34.5%41.2%Down  -16.3%
% of homes with price drops33.4%27.2%Up 22.8%
New Listings65419300Down   -29.7%

Maryland Historic price changes & affordability

The Maryland housing market has seen explosive appreciation for years. The last 3 years have been particularly favorable to homeowners as they saw their homes appreciate by 25.4% in 36 months.   

The steep rise in home prices and mortgage rates has shrunk affordability to record lows in the state. A 25.4% spike in home prices and a sharp increase in mortgage rates in the last 12 months does not spell good news for the Maryland Real Estate market.

We know that the average person’s wages do not increase by 25.4% in three years, so we can see why affordability is a problem. The gap between rising home prices and wages keeps getting wider.

Key Takeaways

  1. The housing market is clearly shifting, and Maryland housing market predictions for the short term seem to be going down along with many areas of the US.  Due to Maryland’s moderate growth, the housing market is not anticipated to have a significant drop in value.
  2. The next 18 to 24 months will be an adjustment, especially for home sellers and Real Estate professionals. Adjusting to a normalized market that is not heavily skewed in favor of sellers will take time.
  3. Real Estate markets are highly local and even within the same state, there will be areas that are projected to be hit hard by the market shift and others will fare better.
  4. Timing the market for buying or selling is a big gamble. If it makes sense for you to buy, go ahead and buy a home. For sellers, if you have to sell in the next 12-24 months, you may want to consider doing it sooner than later, especially if you are in an area that may be considered overvalued and has a high potential for house prices to drop.

2023 Maryland Housing Market FAQ