Maryland Housing Market for 2021 and Beyond

Maryland Housing Market for 2021 and Beyond

2020 was a rocky year for everyone. While the previous 12 months saw unprecedented economic and job losses, there’s still a resilient surge in the housing market in Maryland. 

Real estate agents were able to maintain this growth by adopting new solutions to overcome unique challenges. These new innovative solutions have revolutionized the real estate game, with developments such as virtual viewings becoming a new norm.

This adaptive spirit meant that the housing market grew. The majority of the industry can agree that demand for homes has been high, even during the pandemic. 

One of the largest reasons behind the demand was the historically low mortgage rates, which in turn have fueled this boom, and have driven prices upwards above the average asking price. 

Also contributing to this rise in prices is a lack of inventory for consumers who are looking to get out of the cities into the suburbs or looking to upgrade their homes to fit their adapted lifestyles such as working from home.

Looking at the current market, and predicting the reactions of the economy, is going to be tricky. Even at the best of times, it’s tough to call, but in the current market, it’s more difficult, mainly due to COVID-19.

But what drives these economic factors that affect the Maryland housing market?

Economic factors that affect the housing market

There are two main economic factors that will affect home prices in Maryland.  These include: 


Employment is still lower today in 2021 than it was in 2007, before the Great Recession.

At the end of 2020, there were a total of 2.9 million jobs in Maryland. This is up compared to the 2020 summer figures, although they were still below the pre-2008 recession levels.

Even with the pandemic, 2021 promises to deliver more employment opportunities in Maryland, but at a slower rate when compared to neighboring states. 

However, this is still below the 2019 level, and we could only see proper gains coming in 2022, with a possible return to the pre-recession levels. 

The next indicator is the unemployment rate.

Unemployment rate

The peak unemployment rate in Maryland was in April 2020, at around 9%. This is still below the national rate, but unemployment in the state surged from below 4%, the unemployment rate in 2019. 

This unemployment rate has decreased steadily over the last year and is expected to improve even more in 2021 when it is projected that the unemployment rate in Maryland will drop to 6.2%. 

While we’ve spoken about the main economic factors, we need to dive into the housing market indicators and what it means for the Maryland area. 

Housing market indicators in Maryland

There are a number of factors that drive the housing market. These include: 

Home Sales

The demand for homeownership will continue to be a strong drawcard in Maryland in 2021. The lack of inventory, though, will be the biggest hurdle over the next year. 

In some instances, homebuyers might become discouraged at the limited selection of homes on the market and put off their search until the inventory improves. This being said, waiting for new stock means witnessing the prices on these houses escalate. 

Escalating home prices create a large problem for home buyers, especially first-time buyers, who are just trying to get their foot in the door. 

Home Prices

Prices are being driven upwards in Maryland. The lack of supply, growing demand, and low mortgage rates have all contributed. All these factors will continue to drive home prices higher in 2021. 

Increased demand in smaller markets will ultimately lead to very strong growth in the median statewide home sales price in 2021. 

So, those located outside of the main metropolitan hubs will see increases as well, and arguably, better growth. 

New Housing Permits

Taking on a construction project during 2020 would have been a huge headache. But in the second part of the year, there was an increase in applicants looking for permits for new housing construction. 

This uptake in permits was taking place even with the higher costs of lumber, a lack of labor, and COVID-19 regulations remaining in place, and constraints on new residential construction. 

In 2021, we’re bound to see an upward trend in new home construction projects.

Mortgage Rates

During 2020, the rate on 30-year fixed-rate mortgages hit historic lows, plunging to new lows 13 times over the summer and fall. 

Even with the economy improving in 2021, there is no sign that the mortgage rates will move higher within the next few months. 

As we peer into the future it might not be 100% clear what will happen but the outlook for 2021 looks to be positive for the economy and housing market. 

While this is a general overview, what does the overall view of the Maryland housing market look like?

Maryland housing market forecast  

As with the rest of the state of the United States, interest rates are at an all-time low, demand is strong, and selling prices are higher than average. 

Our predictions for the Maryland and Prince George County housing market are:  

Demand for detached homes will explode 

In Maryland, the demand for more space has driven buyers to scamper for larger properties. This spike in demand has been fueled by low inventory and high demand. 

The average median days for houses on the market in Maryland dropped from 29 days in February 2020 to 8 days in 2021. 

Lack of inventory to remain 

An uptick in interest in property in the Maryland area has coincided with a lack of stock. 2021 has seen a sizable drop of housing stock, year-on-year, with 8,811 new home listings taking place in February 2020 and only 7,404 new homes being listed in the same month in 2021.   

This lack of homes means that there have been outright bidding wars for certain houses. 

Asking prices will remain high

In 2021 home price growth in Maryland is forecast to increase by 13.9% over the 2020 rate of 9.2%. 

Most of these gains will happen in the first half of the year before the market begins to slow. 

Now, what will the trends for the area be? 

Maryland real estate trends 

Over the next 12 months, a few trends will affect buyers’, sellers’, and even investors' choices. These include: 

Super low-interest rates

Clients in the Maryland housing market have been able to lock in historically low-interest rates.

While the prices for homes in the area will continue to skyrocket, many buyers will still be able to count on affording the repayments because of the low-interest rates.

This being said, with little room left for interest rates to drop, rising home prices will mean many potential buyers may see themselves priced out of the market. This is especially true for first-time buyers. 

Multigenerational housing

As mentioned before, many shopping for homes in the Maryland area will be looking for more space. Some experts predict that condos will not move as quickly due to restricted space and COVID-19 regulations requiring masks and working-from-home recommendations.

But the challenge of paying for homes and houses that can accommodate remote employment arrangements has sparked an interest in multigenerational housing. 

This means that in-laws can help with repayments and child-raising, while millennials can help their parents retire comfortably on the property. The arrangement, however, requires space. Property that can be expanded and provide additional dwelling units and separate living spaces will be in high demand. 

High demand 

Most experts can agree that there are no indications that suggest that the shortfall in inventory will be addressed anytime soon. 

This means that home prices and demand will remain high throughout 2021. 

But what’s happened in the surrounding areas of Maryland? 

Maryland Neighborhoods and cities’ Trends 2021 

Home prices in Maryland should expect to follow growth trends. Cities and counties such as Prince George’s County, Montgomery County, and Baltimore, are anticipating increased demand for housing. 

But let’s take focus on these counties and cities. 

Prince George’s County 

The average sales price in the county grew by 10.3% between 2019 to 2020. And following trends from across the state, active inventory dropped from 1900 in 2019 to only 663 in 2021.  

2021 promises to be a year with fewer homes being listed at higher asking prices. 

Montgomery County

One of the shortest waiting periods amongst the Maryland counties homes, on average Montgomery country homes took around 8 days to sell in 2020. 

Also, the county is home to some of the most expensive houses in the state, so expect prices to skyrocket in 2021. 

Baltimore City and Baltimore County

In the Baltimore real estate market, there was a sizable jump in units sold in Baltimore City and County. The urban hub saw an increase of 8.1% and the county 6.3% from 2019 to 2020. 

But what if you’re unable to sell your home in Maryland and can’t do the usual 49 median days on the market? We have a solution for you. 

Sell Your House to House Buyers of America 

There’s nothing more frustrating than not being able to act on your desire to move. With numerous hurdles to overcome, you’ll be tempted to sell your home as-is or cut out the realtor fees by selling your home on your own.

But both these routes are labor-intensive and don’t guarantee you’ll reap any financial rewards. Especially, if you can’t find a cash buyer

Sell your home to us and do it fast. House Buyers of America will buy your home for cash. But how does House Buyers of America work? 

How House Buyers of America Works

We buy homes in Maryland. Since 2001, House Buyers of America has been perfecting and streamlining every step of our home-buying process. 

It starts when you contact us. Our Real Estate Consultants are ready to take your call at 855-659-3289, or you can use our online form, to get started!

As the perfect buyer for your house, we’re going to give you a fair cash offer within 10 minutes of your first phone call. Many of our clients couldn’t believe how efficient and hassle-free the process was. Then again don’t take our word for it, you can ask our customers. 

If you accept the offer, you will be assigned a dedicated Real Estate Consultant who will organize a time to meet at your house, who will also bring along the paperwork to sign. 

House Buyers of America will handle all of the paperwork and we’ll do it quickly if you’re ready to sign on the dotted line. Once you’ve signed the contract, you will see the cash in your account in a matter of days. 

Currently, we buy houses in Washington DCvirginia house buyersMaryland, and all throughout the Mid-Atlantic. 

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Whatever your job transfer needs are, we offer cash for your home and we can close quickly. Buying a New House Perhaps the thought of juggling the sale of your current home and purchasing a new one at the same time in the same local market might be creating a lot of stress. Have you considered having to have your home staged and then factor in coordinating where to live after you sell? What should you do? Put a home sale contingency in an offer to purchase a new house and risk making your offer much less competitive. Or should you buy a house first and then risk not being able to sell your current house, leaving you stuck with two mortgages? This is the age-old real estate dilemma. If you’re in this situation, you’ve come to the right place! With House Buyers of America, you get a guaranteed sale of your house and we’re flexible on the closing date (and no closing costs). After the purchase agreement is signed, your home sale is covered and you can start looking for a new home without worrying about selling your existing home. Divorce Divorce can be a huge disruptor, emotionally and financially. In most cases, the divorced couple needs to sell their house fast so they can divvy up the assets and make a clean break. Many in a divorce situation look for a “sell my house fast Maryland” company so they can sell their house without having to go through the arduous process of a traditional sale. Finding a real estate agent, renovating, cleaning, and staging the house, agreeing on a list price, negotiating the terms of the contract, etc. This is normally a stressful enough task, but if you add divorce into the mix, it feels impossible. Why not pick up the phone and get an offer in 10 minutes? Or simply fill out our online form and get an offer quickly. 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Others simply want a hassle-free solution for downsizing into a smaller home and want equity in their legacy home. Estate Sales House Buyers of America have also helped thousands of people who have suddenly inherited an unwanted or unneeded property. When dealing with an estate, many heirs can’t decide or agree on when to sell the house or who will take care of the paperwork, so the house is left sitting vacant and deteriorating for months or years. Estate sales can bring out the worst in people and families often get torn apart in the process. The traditional real estate process can be complicated and often doesn’t work well for estate sales. The unique estate laws that apply in Maryland can also create some additional complications. So why not try a simple, fast, and hassle-free solution that all of your family members can agree on? Get an all-cash offer in as little as 10 minutes by contacting House Buyers of America. A Fresh Start We’ve talked about several reasons you might want to sell your Maryland house to a cash buyer. Then there are those unfortunate circumstances in life that require a complete and total liquidation of your assets when you need a speedy exit from your current home and town. By getting an all-cash, guaranteed offer from House Buyers of America and getting your house sold in as little as 7 days, you get that fresh start without waiting. That’s why we continue to be the choice of people looking to “sell house fast in Maryland,” as well as other nearby states.