The Catonsville Report - March 2025

Here we are at the beginning of April 2025 - often the month when people begin to consider buying or selling a home. As spring approaches, real estate activity always picks up. It’s important to review what happened in March to help understand how the market is trending so you can make the best decisions for yourself and your family.

Why You Should Focus on Housing Data Specific to Catonsville

1. Broad Data Can Be Misleading
   Let’s say home prices across Baltimore County are down 3%. That doesn’t mean anything to someone selling a well-kept Victorian in 21228 where prices might still be up due to lack of inventory or school district demand. ZIP code-level data shows the real story — and that’s the story buyers and sellers care about.
   
   

2. Real Estate is Hyperlocal
   Even within Catonsville, prices in Westchester are different from those in Academy Heights. Focusing on ZIP code or neighborhood data helps you spot trends before they hit the broader market reports — things like increasing days on market, shrinking inventory, or price softening.
   
   

3. Smarter Pricing & Marketing Strategies
   If you’re pricing a home or trying to buy, you want to look at what’s happening within a few-block radius — not what’s going on in Towson or White Marsh. That local lens helps you avoid leaving money on the table or overpaying.

Mortgage Rates Down Slightly

Over the past month there was not much movement in the 30-year mortgage rate. Ending February at 6.7%, the rate fluctuated slightly over the first few weeks of March, bottoming at 6.6%. Up a bit in the final weeks of March, the month ended at 6.65% but the first few days of April show a downward trend that should make buyers a little happier. Overall, the rate is down from 6.9% in March 2024.

Catonsville Housing Inventory in Short Supply, as Usual

The first housing data point we’re going to look at is the Months Supply of Inventory, which is sitting at a low 0.88. This means that there is less than one month's worth of inventory available, indicating a high demand for homes in the market. Down 1.12% from February, this number indicates a strong seller's market, which is nothing new for Catonsville.

Year over year, we have seen a significant increase in the Months of Inventory, at a whopping +44.26%. This suggests that inventory levels have been slowly rising over the past year, potentially providing more options for buyers this year. However, to even begin to approach a balanced market, we would need at least 4 months of inventory, and that’s not going to happen any time soon.

Most Catonsville Homes on Market for Less Than One Week

When it comes to how quickly homes are selling, the Median Days on the Market is a mere 6 days. This indicates a fast-paced market where homes are being snatched up quickly. That number is down 72% from a big spike in February which was not unusual. During the winter, homes in Catonsville generally take longer to sell. Since our inventory is so low, even one or two lingering homes can cause the statistic to rise.

Catonsville Houses Typically Sell for More Than Asking Price

The Sold to List Price Percentage is also strong at 101.4%, meaning that homes are typically selling for slightly above their listing price. This can be good news for sellers looking to maximize their return on investment. We can expect that number to rise toward a peak around 106% in May, as spring competition heats up.

Home Prices Continue To Rise in Catonsville

When it comes to home prices, some of you might be crossing your fingers that with the continued climb in mortgage rates we would see home prices trending downward. Others may have heard about the new rules in real estate that went into effect last August as a result of the NAR lawsuit settlement, and whether that might trigger home prices to soften. With buyer agent compensation now un-coupled, some home sellers may choose to not offer any buyer agent compensation. And if buyer agent compensation is potentially no longer baked into the purchase price for many homes, are home sellers going to reduce their list price?

In Catonsville, we have not seen much change in buyer or seller behavior because of the new rules. Most listing agents are still offering the traditional 2.5% buyer’s agent commission.

Catonsville continues to experience strong home buyer demand along with a high level of multiple-offer activity. Buyer expectations may need to recalibrate in 2025 as purchasing power will likely continue to be squeezed amid rising home prices and uncertain directional movement in mortgage rates.

The Median Sold Price in 21228 was $400,000 at the end of March. That may seem low, but remember, the median home price is the middle value of all homes sold in our area, meaning half the homes sold for more than that price and half sold for less. It's often considered a more reliable indicator of a typical home price than the average, as it's less affected by very expensive or inexpensive homes.

What we should take from the graph below is the overall upward trend in home prices. We did experience a dip from February to March, but we saw the same dip in March 2024 which then quickly spiked to the highest ever median sold price in April of 2024. We can expect a similar trajectory this year, and possibly another all-time high.

Comparison to Baltimore Metro Area

The graphic below shows the key housing market statistics for the entire Baltimore Metro area. When we compare these numbers with Catonsville’s, we can see obvious differences.

• Closed Sales, year over year for the metro area were down 4.2% but in Catonsville they were down 22%

• Median Sold Price, year over year for the metro area was up 2.7% and in Catonsville it was up 4.4%

• Days on Market for the metro area was double that of Catonsville at 12 days

• Months of Supply for the region is more than twice that of Catonsville at 1.74 months

2025 Catonsville Housing Market - Navigate Strategically

Choosing to buy or sell a home in 2025 will require you to navigate the market strategically to achieve success. This applies to whether you live in Catonsville or elsewhere around the country. There are simply so many market variables that impact the availability of homes at any given price point. The 30-year fixed-rate mortgage will be a wild card in 2025. Mortgage rates are influenced by various economic factors and buyers with a sense of urgency will need to let go of unrealistic expectations. It is very difficult to time the market as to when mortgage rates may dip back down or possibly continue to climb.

4 crucial tips for home buyers and sellers to consider in 2025

1. Know the market data trends for the local area. This includes, for example, how quickly homes are going under contract, what price point is attracting buyer traffic, and how sales prices are trending relative to the list price. And since buyers often look in multiple towns or areas, you will want to gain insight as to how these areas compare to each other.

2. Evaluate the home's longer-term potential. Often buyers stay in homes longer than they initially had planned. As home prices rise, evaluate whether the property can adapt to your changing needs, such as accommodating a growing household or offering flexibility for lifestyle changes, like a new work-from-home job. If you are a home seller, you will want to highlight the versatility of your home's existing floor plan or expansion potential. If you have architectural drawings to add a family room, an additional bathroom, enlarge the kitchen, etc. and did not proceed with the home renovation, you may want to dust them off and share them with potential buyers.

3. Tap into the hidden housing inventory. When working with a professional realtor, buyers can gain access to hidden inventory through private exclusives—listings not available on the open market (Multiple Listing Service). This exclusive access can provide buyers with unique opportunities to find their ideal home before it becomes widely available. For sellers, listing as a private exclusive can create a sense of excitement and exclusivity among serious buyers who are working with realtors. This can often lead to a premium sales price since some buyers may attach value to not having to compete in a bidding war. By leveraging a rockstar realtor's network and expertise, this strategy can benefit both buyers and sellers.

4. Understand how the new rules in real estate factor into your strategy for buying or selling a home. In 2025, understanding buyer agent compensation is crucial for both buyers and sellers. For buyers, the compensation offered to their buyer agent can influence the competitiveness of their offer. If buyers, for example, are responsible for paying all or a portion of the buyer agent's compensation, then this may lessen the purchase price that the buyer can afford. On the seller's side, strategically setting buyer agent compensation can impact the attractiveness of their listing. Sellers who offer competitive buyer agent compensation can incentivize buyers to make an offer on their property over another property where the seller may not be providing compensation to the buyer agent. This buyer incentive can make all the difference in generating offers.

As we look ahead to the 2025 housing market, both buyers and sellers must be prepared for navigating a real estate climate marked by rising home prices and uncertain mortgage rates. The good news and glimmer of hope is that there is the potential for an uptick in housing inventory that had been on hold as many sellers felt handcuffed to their super-low mortgage rates of under 4 percent.

With strategic planning and a keen understanding of housing market dynamics, you can position yourself for success in 2025. Buyers need to be cognizant of local market trends, evaluate the long-term potential of properties, and leverage the expertise of a professional realtor to access hidden inventory. Sellers, on the other hand, should be sure to highlight the lifestyle flexibility of their homes over the long-term, along with showcasing any green design or sustainability features in the home. This is especially important for today's buyers who are increasingly eco-conscious. In addition, sellers will want to evaluate the impact of buyer agent compensation in their listing strategy.

By embracing these insights and adapting to the new rules of real estate, buyers and sellers can make informed and strategic decisions. 2025 might just be the year to get off the sidelines and maximize your window of opportunity in a complex housing market.

If you need help getting ready for the spring market, or have questions about Catonsville real estate, you can reach out at 443-814-9008 or via email: matt@catonsville.living

Conclusion

Overall, these graphs and numbers paint a picture of Catonsville as a market with high demand, low inventory, and strong pricing trends. Whether you're looking to buy or sell, it's important to stay informed and work with a knowledgeable real estate professional to navigate the current market conditions successfully. Happy house hunting!