Housing Market Slows in Maryland, New Data Reveals

Rising Home Sale Cancellations Signal a Cooling Housing Market

Recent data from the real estate industry suggests that the housing market in several regions, including the Baltimore metro area, is experiencing a cooling trend. According to a new report, approximately 13.2 percent of pending home sales in the Baltimore area fell through in June, indicating a shift in buyer behavior and market conditions.

This increase in cancellations is attributed to several factors. One key reason is that buyers are backing out during the inspection period when they find a more attractive home in what is largely considered a buyer’s market. Additionally, many buyers are hesitant to make major purchases due to economic uncertainties, such as inflation, tariffs, and the potential for a recession.

Buyer Behavior and Market Conditions

Redfin, an online real estate company, reported that overall, 14.9 percent of pending home sales fell through in June, up from 13.9 percent in the same month the previous year. This marks the highest June share since Redfin began tracking this data in 2017. In June 2024, the rate of cancellations in the Baltimore area was 11.5 percent, according to the report.

The analysis by Redfin is based on multi-listing service pending-sales data. Typically, the highest rates of cancellations occur at the end of the year and in the spring. However, June is considered a more reliable indicator of buyer sentiment because it reflects the current state of the market.

One of the main reasons for the higher cancellation rates is the imbalance between the number of sellers and buyers. With more homes available than buyers interested in purchasing, the market has shifted toward favoring buyers. This allows them to be more selective and potentially back out if a better option comes along or if they discover issues during the inspection process.

Inventory and Pricing Trends

In June 2025, the inventory of homes for sale in the Baltimore real estate market stood at 6,135 units, compared to 6,250 in June 2024. This represents a slight decrease of 13% from the previous month's supply of 7,089 units.

The median sale price for homes in the Baltimore metro area was $415,000 in June 2024, rising to $425,000 in June 2025—a 2% increase. The current median price is also 2% higher than in May.

New listings for homes in the Baltimore area saw a decline of 16% in June 2025 compared to the same month the previous year, with 3,348 homes newly listed versus 3,965 in June 2024. Meanwhile, the number of current contracts pending sale increased by 8%, with 3,300 contracts compared to 3,051 a year earlier.

Financial Concerns and Economic Uncertainty

Financial concerns are another major factor behind the rise in cancellations. While mortgage rates have slightly decreased, monthly payments remain near all-time highs. Some buyers are canceling deals once they realize the financial burden of their monthly payments.

Economic uncertainty, particularly around issues like tariffs, inflation, and the possibility of a recession, is also contributing to buyer hesitation. Redfin agents have noted that some buyers are waiting for potential drops in home prices or mortgage rates, even though such declines are unlikely.

Regional Variations in Cancellation Rates

The data shows significant regional variations in cancellation rates. For example, in Jacksonville, Florida, over one in five (21.4%) home-purchase agreements were canceled in June, the highest among 44 major U.S. metros analyzed by Redfin. Other cities with high cancellation rates include Las Vegas (19.7%), Atlanta (19.6%), and San Antonio, Tampa, Orlando, Riverside, Phoenix, Fort Worth, and Miami.

Conversely, Nassau County, New York, had the lowest cancellation rate at 5.4%, followed by Montgomery County, Pennsylvania (6.8%), and Milwaukee (8.2%). In California, there were notable increases in cancellation rates in cities like Anaheim and Los Angeles, while a few areas, such as Fort Lauderdale, Denver, and Orlando, saw slight decreases.

Future Outlook

Redfin previously forecasted a 1 percent year-over-year decline in home prices nationwide by the end of 2025. Mortgage rates are expected to remain stable, hovering around the 6.8% range.

Sellers are also adapting to the current market conditions. In a buyer’s market, many are willing to make concessions to close deals. For instance, one buyer in Phoenix was able to negotiate a $1 million price reduction after discovering a septic issue in an ultra-luxury home.

Overall, the trends suggest that the housing market is becoming more cautious, with buyers exercising greater control and sellers adjusting their strategies to meet changing demands.