Market Update · August 24, 2026 · 6 min read
Home Depot and Lowe's just told Wall Street that while homeowners are still buying paint and fixing leaky faucets, they've hit pause on the big stuff. Kitchen remodels. Bathroom overhauls. The discretionary projects that cost five figures and take weeks.
That matters more than you think if you're thinking about selling in Harford, Baltimore, or Montgomery County this fall.
Because here's the thing: when your neighbors stop investing heavily in their homes, it changes the comp landscape. And when buyers see fewer recently updated kitchens in their search results, their expectations shift.
I've been tracking this in my own listings. The sellers who updated strategically over the past eighteen months are doing fine. The ones banking on a last-minute $40,000 kitchen flip to justify their list price? We need to talk.
Freddie Mac's latest survey has the 30-year fixed at 6.65% as of August 20th. The 15-year sits at 5.95%.
Those aren't the sixes-going-on-fives we were hoping for back in July. They're sticky. And buyers are responding exactly how you'd expect: pending sales nationwide dropped 2.3% in July, according to NAR's latest data.
Here in Maryland, I'm seeing it play out at open houses in Anne Arundel and Cecil Counties. Foot traffic is steady but conversion is slow. People tour. They like what they see. Then they go home and run the numbers again, and the monthly payment at 6.65% versus what they imagined at 5.8% gives them pause.
I wrote last week about why government can't simply "fix" mortgage rates, and that reality is settling in for a lot of buyers who spent the spring waiting for relief that didn't arrive.
So back to Home Depot. When consumers pull back on major remodeling, it's usually because of two things: uncertainty about home values or uncertainty about staying put.
Right now it's both.
The lock-in effect is real. Families with 3% mortgages aren't moving unless they have to, which means they're also not investing $50,000 into a kitchen they plan to enjoy for the next decade. They're in limbo. Maintenance mode, not improvement mode.
For sellers, this creates a weird dynamic. You can't count on your competition having done expensive updates. But you also can't assume buyers will overlook deferred maintenance just because "everyone's house needs work."
I had a seller in Bel Air last month who wanted to list as-is, figuring the market would bear it. We priced accordingly, disclosed everything, and still heard from three different buyers' agents that their clients were walking because they "didn't want a project." At 6.65%, buyers want move-in ready. They're financing enough as it is.
Here's a data point that connects to all of this: 14% of home purchase contracts fell through in July, the highest rate since November 2023, according to Redfin.
When buyers have options and rates are high, they get picky. They exercise inspection contingencies more aggressively. They renegotiate harder. And yes, they walk away.
I've seen it locally. A buyer under contract on a Howard County colonial got cold feet after the appraisal came in $15K low and the seller wouldn't budge. Three years ago that deal would've closed with the buyer making up the gap. Not anymore.
The power balance has shifted, especially in markets where inventory is climbing. And if you're a seller who skipped the kitchen update because you didn't want to spend the money before listing, you're now negotiating from a weaker position than you think.
If you're planning to list in Maryland, DC, Pennsylvania, or Delaware between now and October, here's my straight talk:
You don't need to gut the kitchen. But you do need to make sure everything works, looks cared for, and photographs well. Paint. Landscaping. Decluttering. The stuff that costs hundreds, not tens of thousands.
I worked with a couple in Baltimore County who wanted to replace all the flooring before listing. I steered them toward a deep clean, fresh paint in the living areas, and new lighting in the dining room. Total spend: $3,200. We listed $8,000 under what they would've priced at with new floors, got two offers in the first week, and closed $11,000 over ask. The buyers loved the bones and planned their own flooring choices.
We already know that mid-September is Baltimore's statistical sweet spot for buyers, according to Redfin's analysis of seasonal trends. But that doesn't mean you can overprice in late August and hope for a miracle in two weeks.
Buyers are disciplined right now. They've seen enough listings sit. If you come out aggressive, you'll get views but not offers. And once you've been on the market three weeks, the stigma sets in.
The days of "we don't negotiate" are over. If a buyer asks for a closing cost credit or wants you to handle a $1,200 roof repair that surfaced in the inspection, you're probably going to say yes if you want the deal to close.
I had this conversation with a seller in Prince George's County just last week. She was insulted that the buyer asked for a $2,500 credit after the inspection. I reminded her that we had one offer in 18 days, rates were 6.65%, and the buyer was fully qualified. We took the deal.
One more thing worth noting: Zillow reported that rents hit $1,962 nationally in July, rising at the fastest pace in over a year.
That's creating a secondary pressure point. Renters who want to buy are getting squeezed by both rising rents and high mortgage rates. The math that used to make homeownership a no-brainer is now a maybe-brainer.
I'm seeing it with first-time buyers in Harford and Cecil Counties. They're tired of renting. They want to build equity. But at 6.65%, the monthly payment on a median-priced home is higher than their current rent, and they're not sure they want to stretch.
Which brings us full circle: if buyers are cautious and your listing needs work, you're not getting top dollar. Not in this environment.
I don't have a crystal ball. I can tell you that new listings have ticked up five straight weeks heading into late August, which means more competition for sellers. I can tell you that builder confidence is flat and housing starts dropped in July. And I can tell you that Home Depot's earnings call just confirmed what I've been sensing: homeowners are in wait-and-see mode.
If you're thinking about listing, let's talk strategy before you spend money in the wrong places. If you're a buyer wondering whether to wait for rates to drop or jump in now, I can run the numbers with you. Either way, the market we're in requires a sharper pencil than the one we used two years ago.
Take a look at what's currently listed in your area, or reach out and let's talk about your specific situation. I spent 20 years teaching before I got into real estate, and old habits die hard—I'd rather explain the landscape than pretend it's simpler than it is.
The Maryland and DC markets are still moving. But they're moving differently. And if you're making a six-figure decision, you deserve someone who'll walk you through the reality, not the talking points.
Katrina Kirton Sherrod, REALTOR® · Samson Properties · Licensed in MD, DC, PA & DE · 443-616-9770 · Katrina@kkstherealtor.com
“The house you looked at today and wanted to think about until tomorrow may be the same house someone looked at yesterday and will buy today.” — Koki Adasi