Blog

It’s that time again! While we wait out this frigid winter I like to pause and look back at the market we’ve just experienced—and share a few thoughts on what the coming year may bring. Many of you have been reading these letters for quite some time now. While I certainly can’t predict our real estate future, my 20+ years as a Realtor with Howard Hanna have given me a solid understanding of trends and the ability to offer informed guidance to my clients.

Our current job market is strong with overall growth in the healthcare, high-tech/semiconductors and government sectors. On the housing front, home values have climbed steadily for more than five years, and I don’t anticipate any meaningful downturn ahead. In 2025, the average sale price of a single-family home reached $400,971, an 8.7% increase over the previous year. Continuing the trend of positive appreciation our region has experienced for approximately six to seven years, with a significant acceleration in growth beginning around the start of the COVID-19 pandemic (2019–2020). While appreciation was steadier prior to 2020, the market has seen sustained, often double-digit, percentage increases in home values and median sale prices through 2025.

There were 9,746 closed single-family sales in 2025, slightly more than 2024 but significantly less than 2021's 13,485 sales. The primary reason for this drop is interest rates. In 2021, 30-year mortgage rates hovered around 3%. Last year, they spent most of their time in the mid-6% range. Understandably, many homeowners chose to stay put rather than trade a low rate for one that’s double. Adding to this is the rising cost of new construction. While prices across the board have increased, new builds have surged even more, with very few starting under $500,000.