August Market Update

Blake Wood

Sep 2

4 min read

Anne Arundel County

July gave us a pretty clear warning about where the market was heading. Pending sales were down nearly 20% from the year before, despite buyers having roughly the same amount of inventory to choose from.

That slowdown showed up in August.

603 homes sold in Anne Arundel County, down 7.8% from August 2025. More importantly, the pipeline hasn't improved. We are now sitting on roughly 25% more active inventory than this time last year, while pending sales are down roughly 25%.

That combination tells us quite a bit about the market.

For the last several years, low turnover could largely be blamed on a lack of homes available for buyers to purchase. That explanation is becoming harder to make. Inventory is improving. Affordability isn't.

Mortgage rates averaged around 6.67% in August and have been creeping back toward 7%. Buyers have more choices, but the monthly payment on those choices is keeping a meaningful portion of them on the sidelines. Unless rates improve, I expect turnover to remain slow through the fall.

The interesting part is that this slowdown still hasn't translated into a major decline in home values or a dramatic increase in the time it takes a good listing to sell.

August's median sales price came in at $510,000, still higher than every previous August we've tracked. Homes that sold spent a median of just 11 days on the market.

So while the market is clearly slowing, it isn't necessarily getting easier for buyers across the board. There are still plenty of buyers competing for the homes they perceive as good values. The difference is that they're becoming increasingly selective about which homes deserve their attention.

Homes Sold

603 homes sold (-7.8% vs. August 2025)

What it means: The drop we were watching for last month arrived. July's unusually low pending-sales count translated into fewer August closings, and current pending activity suggests turnover will remain slow heading into fall.

Days on Market

Median # of Days on Market: 11

What it means: This is probably the most interesting number this month. Despite slower turnover and considerably more inventory, the homes actually selling are still moving quickly. Buyers haven't disappeared. They are simply becoming much more selective about what they are willing and able to pay for.

Interest Rates

~6.67% average 30-year fixed mortgage rate in August

What it means: Rates moving back toward 7% are putting additional pressure on affordability at a time when buyers were already stretched. With inventory up and pending sales down significantly from last year, I expect higher rates to keep turnover suppressed through much of the fall.

5-Year Average Appreciation

~3.73% average annual appreciation

What it means: Appreciation continues to moderate, but we're still seeing positive long-term price growth. August's median price was higher than each of the previous five Augusts, which is another reason I view the sharp decline from July as more of a normalization after an unusually strong month than a sudden drop in home values.

Off-Market Sales

Just over 10% of August sales occurred off-market

What it means: 65 August transactions sold with two days or less of MLS exposure. Even as overall turnover slows, a meaningful portion of the market continues to trade without much public exposure.

Active Inventory

1,265 active listings

What it means: Inventory is now roughly 25% higher than this time last year, but pending sales are roughly 25% lower. That's an important change. Low turnover is becoming less about buyers having nothing to buy and more about affordability and whether sellers are willing to meet today's buyers on price.

Real Estate Has Seasons. That Doesn't Mean You Can Time the Market.

Real estate in Maryland is seasonal, and the numbers prove it.

Looking back over the last five years, January and February have averaged roughly 30% fewer home sales than a typical month. On the other end, May through August have each averaged at least 10% more sales than a typical month, with June and August nearly 20% higher.

Inventory follows an even clearer seasonal pattern. From April through November, Anne Arundel County typically ends the month with roughly 1,000–1,200 homes for sale. From December through March, that drops about 30% to only 700–750.

So yes, there is absolutely a better season for real estate activity. That doesn't necessarily mean there's a better time for you to buy or sell.

The market has a natural push and pull. During the busier months, more buyers are looking, but more sellers are competing for their attention. During the slower months, there are fewer buyers, but also fewer homes for them to choose from. The level of activity changes, but both sides of the market tend to move with it.

That's why I wouldn't wait six or nine months to sell a house simply because another season might look better on paper. The potential seasonal advantage isn't happening in a vacuum. While you wait, mortgage rates can change, the economy can change, and the broader housing market can change.

The same applies to buyers. You can't control when the right house comes on the market, and waiting for the "perfect" buying season may simply mean missing the right opportunity.

Buy or sell when you're ready. Understand the season you're in, adjust your strategy and expectations accordingly, and get it done.

Hyper Local Numbers

Area	August Sales	August Median Price	YTD Sales	YTD Median Price
Annapolis	104	$654,500	896	$660,000
Arnold	31	$700,000	220	$575,000
Severna Park	27	$960,000	219	$795,000
Crownsville	4	$705,000	78	$744,500
Edgewater	29	$524,900	233	$599,500
Davidsonville	7	$1,050,000	66	$975,000