Our industry specialist has reviewed and approved the final article. Also, some of the data presented here have been integrated into the Baltimore real estate spreadsheet template.
Thinking of buying in Baltimore? Get our financial spreadsheet tailored to this specific market.
Hoping for a drop in Baltimore property prices in 2025? Don’t count on it.
Despite economic shifts, Baltimore's real estate market is poised for growth, driven by increasing demand and limited housing supply.
Let’s explore why property prices in this city are expected to rise in 2025.
We rely on solid, up-to-date data and statistics from multiple credible sources, all of which are detailed in this post.
Our comprehensive analysis of this data leads us to our own well-founded conclusions at the end. Enjoy the read!
How this content was produced 🔎📝
This article offers thoughtful insights and analysis based on reliable sources, but it should not be considered financial advice. We work hard to research, compile, and analyze data to give you a well-informed perspective. However, as you can guess, our analysis involves subjective choices, such as source selection and methods, and it cannot fully capture the market's complexity. Please, always do your own research, consult professionals, and make decisions based on your own judgment. Any financial risks or losses are your responsibility. Additionally, you should know that we have no affiliation with the sources mentioned, ensuring our analysis is completely impartial.
1) Baltimore home values have risen by 5.5% since last year, and this trend may persist
Signal strength: strong
The fact that home values in Baltimore have already changed by 5.5% since last year is a strong indicator that the housing market is on an upward trend. This increase suggests that demand is growing, which often leads to higher prices.
Currently, the median home price in Baltimore is around $184,361, and this figure is likely to rise if the trend continues. Additionally, the median sales price per square foot is around $159, which reflects the value buyers are willing to pay for space in this market.
These numbers indicate that investors might see a good return if they choose to invest now, as the market is showing signs of growth. If the trend persists, housing prices in 2025 could be significantly higher than they are today, making it a potentially lucrative opportunity.
However, if home values were to decrease by more than 5% in the coming months, it might suggest a different trend, potentially signaling a downturn instead.
Source: Redfin
2) A local in Baltimore could afford a house in about 3.1 years, which is relatively quick
Signal strength: moderate
In Baltimore, it currently takes around 3.1 years for a local to buy a house, which is relatively short compared to many other cities. This suggests that homes are quite affordable, given that the median household income is approximately $59,579 and the median home price is about $184,361.
When homes are affordable, more people can buy them, which can lead to increased demand. As demand rises, it often causes housing prices to increase over time, making it a potential opportunity for real estate investors.
Investors might see this as a sign that housing prices could go up in 2025 in Baltimore, as more people are likely to enter the market. However, if the time it takes for a local to buy a house were to increase significantly, say to 5 years or more, it might indicate that prices are becoming too high for the average buyer.
Source: USCensus
We created this infographic to show how property prices in Baltimore compare to other big cities in Maryland. It shows the median price as well as the price per sqft, making it easy to see which places might offer the best value. We hope you find it helpful.
3) Baltimore's "Livability" score of 77 indicates a good quality of life
Signal strength: moderate
The fact that Baltimore has a livability score of 77 is a positive indicator for potential real estate investors. This score suggests that the city offers a high quality of life, which can attract more residents and increase demand for housing.
One reason for this good score is Baltimore's vibrant arts and culture scene, which includes renowned institutions like the Baltimore Museum of Art. Additionally, the city boasts a strong educational presence with prestigious universities such as Johns Hopkins University. These factors contribute to a desirable living environment that can drive up housing prices.
Moreover, Baltimore's proximity to major cities like Washington, D.C., makes it an attractive location for commuters. This accessibility enhances its appeal to potential homebuyers, further supporting the assumption of rising housing prices in 2025.
If the livability score were to drop below 65, indicating a decline in quality of life, it might suggest a different trend for housing prices.
Source: AreaVibes
4) In Baltimore, about 34% of homes sell for more than their listing price
Signal strength: moderate
In Baltimore, around 34% of sales close at a price higher than the listing price, which is a strong indicator of demand. When buyers are willing to pay more than the asking price, it often means that competition among buyers is fierce and they are eager to secure a property.
This kind of market behavior typically suggests that housing prices are on an upward trend. As demand continues to outpace supply, sellers can expect to receive offers that exceed their initial expectations, further driving up prices.
For potential investors, this is a signal that investing in Baltimore real estate could be a profitable decision. However, it's important to note that if the percentage of sales closing above the listing price were to drop significantly, say below 10% of sales closing above the listing price, it might indicate a cooling market.
Source: Zillow
Our team designed this infographic to show how competitive the real estate market in Baltimore is vs. other major cities in Maryland. It shows the percentage of sales above the list price, a key indicator of market competition.
5) Two major websites predict that home prices in Baltimore will rise in 2025
Signal strength: moderate
When considering the future of Baltimore's housing market, it's noteworthy that two major websites are forecasting positive growth for home prices in 2025.
Among these forecasts, Redfin is the most optimistic with a prediction of a 4% increase, followed by Realtor, which anticipates a 2.70% rise. In contrast, Zillow projects a decline of -1.20%, highlighting a significant gap in expectations.
While these forecasts provide valuable insights, it's crucial to remember that predictions are not guarantees and should be viewed with a degree of skepticism. We will also rely on strong, reliable, and current data to form a comprehensive understanding of the market.
If the majority of forecasts were to predict a consistent decline in home prices, it would suggest a different trend.
Sources: ZillowForecasts, RedfinForecasts, RealtorForecasts
6) Baltimore's median home price is significantly lower, at 58% below the national average
Signal strength: minimal
The fact that Baltimore's median home price is 58% below the national average suggests that there is significant room for growth in the housing market. When a city's home prices are considerably lower than the national average, it often indicates potential for appreciation as more people and investors recognize the value and move in.
In Baltimore, the most expensive properties are likely to be luxury townhouses in areas like Federal Hill, where demand is high due to proximity to amenities and vibrant city life. On the other hand, the cheapest properties are often small rowhouses in neighborhoods like Sandtown-Winchester, which may require significant renovation but offer potential for future value increase.
Investors looking at Baltimore should consider that the current price disparity with the national average could attract more buyers and investors, driving prices up. As the city continues to develop and improve, the demand for housing is likely to increase, pushing prices closer to the national average.
If Baltimore's median home price were to rise to only 20% below the national average, it might suggest that the market has reached a more stable point, potentially slowing further rapid increases.
Source: Zillow
This infographic we have made will show you how market values have changed during the last decade in Baltimore vs other major places in Maryland. Here, the percentage increase or decrease in market value will help you see long-term trends.
7) In Baltimore, home prices have consistently risen by an average of 5.3% each year over the past decade
Signal strength: minimal
The fact that home prices in Baltimore have appreciated at an average rate of 5.3% over the last decade is a noteworthy signal for potential investors. This consistent growth rate suggests a history of demand and price growth, which can create a favorable environment for future increases in housing prices.
When we see such a positive trend over a 10-year period, it often indicates that the market has been stable and attractive to buyers. This historical data can be a good indicator for those considering investing in real estate, as it reflects a pattern of appreciation.
However, it's important to remember that past performance doesn’t guarantee future results. While the trend is promising, investors should also consider other factors that might influence the market in 2025.
If the average appreciation rate were to drop significantly, say to below 2% annually, it might suggest a different outlook for the future.
Source: NeighborhoodScout
So, are prices going to climb in Baltimore in 2025? Yes, they are!
Based on the data, it's clear that Baltimore's housing market is on an upward trajectory.
Home values have already increased by 5.5% over the past year, and the median home price is currently around $184,361. This suggests a growing demand, which typically leads to higher prices. Additionally, the fact that 34% of homes sell for more than their listing price indicates strong competition among buyers, further driving up prices.
Moreover, Baltimore's livability score of 77 and its proximity to major cities like Washington, D.C., make it an attractive place to live, likely increasing demand. The city's home prices are also 58% below the national average, suggesting room for growth as more people recognize the value. With a consistent average annual price increase of 5.3% over the past decade, the trend is promising.
Related analyses:
- Yes, investing in real estate is a solid option in 2025 in Baltimore