News Summary
Baltimore’s housing market is slowing down, with a sharp increase in buyer cancellations and declining sales activity. In June 2025, 13.2% of pending sales fell through, marking the highest cancellation rate since 2017. Concerns over crime, economic uncertainty, and high property taxes are driving buyers away and impacting overall market health. Despite fewer homes available, median sale prices rose by 2%. Experts suggest that soaring cancellations reflect a tense seller’s market, where many are willing to negotiate to close deals.
Baltimore’s Housing Market Faces Downturn as Buyer Cancellations Increase Amid Crime and Economic Concerns
The housing market in Baltimore is currently experiencing a marked slowdown, characterized by a rising number of property cancellations and declining sales activity. The downward trend has left many homes unsold, raising concerns about the overall health of the local real estate sector.
Rising Home Cancellations and Market Cooling
In June 2025, approximately 13.2% of pending home sales in the Baltimore metro area fell through, representing a notable decline and signaling a cooling market. This cancellation rate surpasses previous levels, with the overall cancellation rate for pending home sales reaching 14.9% in June—its highest June share since data tracking began in 2017.
This uptick in cancellations reflects buyers backing out during the inspection period, often citing better options elsewhere or economic uncertainty as primary reasons. The trend marks a shift from the previous year, when 11.5% of sales in June 2024 fell through, indicating a sharp rise in canceled transactions.
The inventory of homes in Baltimore also declined, with 6,135 units available in June 2025—a 13% decrease from 7,089 units in the previous month. Despite fewer homes on the market, the median sale prices increased by 2%, rising from $415,000 in June 2024 to $425,000 in June 2025.
Significant Drop in Listing Activity and Buyer Engagement
New listings in the area decreased by approximately 16%, with 3,348 new properties added in June 2025 compared to 3,965 in June 2024. Meanwhile, the number of pending sale contracts reached 3,300, marking an 8% increase from the prior year. This suggests that, although more contracts are pending, a substantial proportion are being canceled before closing.
Buyers are often hesitant due to economic concerns such as tariffs, inflation, and fears of a potential recession. Additionally, even with falling mortgage rates, monthly payments remain near record highs, causing many to reassess their financial capacity and leading to cancellations or postponements.
Impact of Crime and High Property Taxes
Specific neighborhoods like Curtis Bay continue to experience higher crime rates, which have been identified as deterrents for potential buyers. Crime, coupled with concerns over poor school quality and high property taxes, is fuelling an exodus from Baltimore. Real estate experts note that more residents are attempting to leave the city than new residents are moving in, contributing to the downward pressure on home prices and sales.
The city’s property tax rates are notably high, more than double those of any other jurisdiction within Maryland. Efforts to mitigate this burden have largely failed; a recent ballot measure aimed at reducing property taxes did not advance to a vote, further limiting options for economic relief.
Comparisons and Broader Trends
Compared to surrounding counties, property values in Baltimore are substantially lower—about 59% less—highlighting the affordability gaps that might influence buyer decisions. Nationwide, high cancellation rates are also observed in other major US metros, with Jacksonville, Florida, leading at 21.4%. In California cities like Anaheim and Los Angeles, year-over-year increases in contract cancellations of 15.2% and 17.1%, respectively, further exemplify national market struggles.
Many sellers in Baltimore are now willing to negotiate and make concessions to finalize transactions, reflecting a buyer’s market environment. However, the overall economic and social challenges continue to complicate the recovery of the market.
Balanced market conditions, ongoing economic concerns, and high property taxes present substantial hurdles for Baltimore’s real estate sector, with many stakeholders feeling increasingly uncertain about future prospects.
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Additional Resources
- Baltimore Sun: Maryland’s Housing Market Cooling
- New York Times: Baltimore Housing Issues
- Fox Baltimore: Homeowners Trapped in Crisis
- Encyclopedia Britannica: Baltimore Housing Market
- Patch: Housing Market Cooling in MD
- Google Search: Baltimore Housing Market
Author: STAFF HERE BALTIMORE WRITER
BALTIMORE STAFF WRITER The BALTIMORE STAFF WRITER represents the experienced team at HEREBaltimore.com, your go-to source for actionable local news and information in Baltimore, Baltimore County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Baltimore Book Festival, Preakness Stakes, and Artscape. Our coverage extends to key organizations like the Baltimore Chamber of Commerce and Visit Baltimore, plus leading businesses in shipping and healthcare that power the local economy such as the Port of Baltimore and Johns Hopkins Medicine. As part of the broader HERE network, we provide comprehensive, credible insights into Maryland's dynamic landscape.
