July Market Update

Blake Wood

Aug 3

5 min read

Anne Arundel County

July was one of the more interesting months we've seen all year.

At first glance, the market still looks remarkably healthy. Home sales matched last July almost exactly, median sales price jumped nearly 10%, and homes continued selling in just 11 median days. Those are not the numbers of a struggling housing market.

But once you dig below the surface, there are signs that the market continues its very gradual shift toward a buyers market.

The biggest story this month wasn't the record prices. It was what happened to pending sales.

Compared to this time last year, Anne Arundel County has almost the exact same amount of inventory available for buyers, yet there are nearly 20% fewer homes currently under contract.

That's important because closings reflect contracts that were signed about a month earlier. While July itself produced almost identical sales volume to last year, the pipeline heading into August is noticeably lighter. Unless pending activity rebounds quickly, August closings will likely tell a different story.

This fits with what I think happened in July.

Historically, median home prices have peaked in June before leveling off or slipping slightly through the second half of the summer. This year, however, July's median price actually increased another $22,000. I don't think that's the start of another surge. I think July was simply an unusually strong month that will likely balance itself out as we move into August and the fall.

If pending sales recover next month, July will simply look like an outlier.

If they don't, and we continue seeing more homes hit the market while fewer buyers are putting properties under contract, Anne Arundel County could move toward a much more buyer-friendly fall market than we've experienced over the past several years.

I don't think that's where we're headed just yet.

Compared to much of the country, Anne Arundel County remains an exceptionally strong seller's market. But compared to where we've been since interest rates jumped in 2022, I do think we're continuing a very slow shift back toward balance. The highest-demand neighborhoods, especially premier waterfront communities, still aren't showing many of those symptoms. Overall, demand to buy in this county remains incredibly strong.

Homes Sold

713 homes sold (essentially unchanged from July 2025)

What it means: Turnover remains stable. Even with affordability challenges and elevated mortgage rates, buyers are still purchasing homes when the property is priced correctly.

Days on Market

Median # of Days on Market: 11

What it means: Homes took slightly longer to sell than both June and last July, exactly what we'd expect as the market moves through the summer. Even so, 11 days is still an exceptionally fast market and remains firmly in seller-market territory.

Interest Rates

~6.55% average 30-year fixed mortgage in July

What it means: Mortgage rates continue refusing to cooperate. Until inflation shows more meaningful improvement and global economic uncertainty settles down, I think rates are likely to remain in the mid-to-upper 6% range, with the possibility of moving even higher before they move lower.

5-Year Average Appreciation

~5.15% annual appreciation

What it means: This jumped noticeably from last month, largely because of July's strong pricing. I expect this number to settle back closer to the mid-4% range over the next month or two, which I still believe is a healthier long-term pace for our market.

Off-Market Sales

11% of all transactions occurred off-market

What it means: More than one out of every ten homes still sold before most buyers ever saw them online. To gain access to this portion of the market you need to be dialed in with your realtor –– Call Me.

Active Inventory

1,248 active listings (+23% vs. June)

What it means: Inventory typically increases during the summer, but this month's jump was larger than normal. Combined with pending sales running nearly 20% below last year, this is one of the clearest trends to watch heading into the fall. If this pattern continues for another month or two, buyers could find themselves in a much friendlier market than Anne Arundel County has offered in years.

Simplifying the Buying & Selling Process

One of the most common questions I hear is, "What do you think interest rates are going to do?" or "Did you see what the stock market did today?"

Those things matter, and they influence every housing market. But once you've made the decision that you're ready to buy or sell, I think they're often more of a distraction.

Instead, when it's time to get serious, I make sure my buyers and sellers are focused on their micro market.

If you're selling, your micro market is the relatively small group of buyers who would realistically purchase your home. Our job is to identify those buyers, price the home where they'll see value, market it in a way that gets them through the front door, and then negotiate a deal that keeps the right buyer engaged all the way to closing.

If you're buying, your micro market is your competition. Before we write an offer, I spend time talking with the listing agent, learning what matters most to the seller, and understanding exactly what we're up against. Then I'll tell you what I honestly think it will take to win. Sometimes that's more than you're comfortable paying, and that's okay. I'd rather give you an honest assessment up front than have you spend months writing offers that never had a realistic chance of being accepted. My goal isn't to write the most offers, it's to write the right ones. On average, my buyers are under contract after just 1.5 offers because we do the homework up front.

Real estate doesn't have to be complicated. If you're looking for an agent who is going to pull out every trick in the book to save you $20,000 on one deal but causes you to lose out on five of your favorite homes or the best buyer for your property in the process, I'm probably not the right agent for you. My job is to simplify the process, help you make good decisions, and put you in the best position to accomplish your goal.

Hyper Local Numbers

Area	July Sales	July Median Price	YTD Sales	YTD Median Price
Annapolis	140	$694,000	271	$665,000
Arnold	33	$625,000	187	$565,000
Severna Park	34	$747,500	190	$784,500
Crownsville	9	$740,000	73	$749,000
Edgewater	27	$602,000	203	$615,000
Davidsonville	11	$1,165,000	58	$967,500

Thank you for reading and supporting The Wood Group.

If you or someone you know is thinking about buying or selling in the Annapolis area, we would love the opportunity to help.