Home Prices Near Annapolis Keep Climbing Amid Persistent Inventory Shortage

Home prices across the Annapolis area continued climbing last quarter, according to regional real estate association data, as a persistent shortage of available housing inventory keeps competition intense among buyers throughout Anne Arundel County.

The median sale price in the Annapolis market rose again compared with the same period last year, extending a multi-year trend that local real estate agents attribute to limited new construction, an aging population of homeowners who are staying in place longer, and continued demand from buyers relocating from the Washington and Baltimore metro areas seeking a waterfront-adjacent lifestyle at a somewhat lower price point.

"We're still seeing multiple offers on well-priced homes within days of listing, which tells you inventory just hasn't caught up to demand," said the president of a local Realtors association covering Anne Arundel County. "Buyers who were hoping rates coming down would create some breathing room in this market haven't really gotten that relief yet, because more buyers came back into the market at the same time."

Local housing advocates have pointed to zoning restrictions and limited buildable land near the water as structural constraints on new housing supply in the county, issues that have proven difficult to address given strong resident opposition to higher-density development in many established neighborhoods. County planning officials said several smaller infill housing developments are working through the approval process but are unlikely to meaningfully affect overall inventory in the near term.

Real estate agents said first-time buyers have been particularly squeezed by the combination of elevated prices and mortgage rates that remain well above pre-pandemic levels, pushing many toward condominiums or homes farther from the waterfront than they had originally hoped to buy.