Market Update · August 16, 2026 · 8 min read
If you've been watching the market this summer, you already know it's been weird. Rates dropped in the spring, then climbed back up. Buyers who were house-hunting in June seemed to vanish by July. And now, mid-August, we're seeing something I haven't seen in a while: inventory inching up and a flood of price reductions at the same time.
According to HousingWire's latest data, national inventory rose to 871,063 homes in mid-August—slightly higher year-over-year—even as mortgage rates hovered near recent highs. That's not a dramatic jump, but it's movement. The kicker? 41.67% of listings had a price cut. That's significant.
Pending sales fell year-over-year, too. Buyers are gun-shy. Sellers are adjusting. And we're caught in this awkward standoff where everyone's waiting for someone else to blink.
Let me translate what this means if you're buying or selling a home in Harford, Baltimore, Cecil, Anne Arundel, Montgomery, Howard, Prince George's, or any of the counties I serve across Maryland, DC, Pennsylvania, and Delaware.
First, let's talk rates. Freddie Mac's latest survey pegs the 30-year fixed at 6.67% as of August 13. That's down slightly from the recent highs we saw in late July, but it's nowhere near the sub-6% rates buyers enjoyed earlier this year.
I wrote about this just a few days ago in "Mortgage Rates Drop to 6.67% — Why MD & DC Buyers Still Aren't Biting", and the trend is holding. Even though rates have eased a hair, buyers aren't flooding back into the market. Affordability is still stretched. A $400,000 home at 6.67% costs about $2,600/month in principal and interest alone—before taxes, insurance, and HOA fees. That's real money for a household pulling in the median income in Harford or Baltimore County.
The Fed held rates steady at their last meeting, but three members wanted a hike. Zillow's forecast suggests mortgage rates may only fall to around 6.4%–6.5% by year-end. So if you're a buyer hoping rates will crash back to 5% by Thanksgiving, I wouldn't hold my breath.
More homes on the market should be good news for buyers, right? In theory, yes. In practice, it depends.
Here's what I'm seeing on the ground in Maryland. In Harford County, we've had a handful of new listings pop up each week—mostly resales, not new construction. A few nice colonials in Bel Air, a split-foyer in Fallston, a rancher near Havre de Grace. Nothing earth-shattering, but it's more than we had in March or April.
Baltimore County is similar. Inventory is creeping up, especially in the middle-price tiers—think Towson, Parkville, Perry Hall. I'm not seeing a surge of luxury homes, and starter homes are still pretty tight. But there's something to look at now, which is an improvement.
Prince George's County and the DC suburbs? Also seeing modest gains. Not a flood, but a trickle. And that trickle matters when you've been staring at the same five listings for two months.
The thing is, this inventory gain isn't evenly distributed. HousingWire noted that limited inventory is still the common denominator across Northeast markets from Rochester to Boston. Our region falls into that bucket. We're not drowning in listings. We're just slightly less parched than we were.
If you're a buyer, this is your moment to be strategic. More inventory means more choice. Rising price cuts mean sellers are getting realistic. And if you've been pre-approved and ready to move, you have more negotiating leverage than you did six weeks ago.
Reach out to me if you want to talk through what's actually available in your target area. I'm happy to pull current numbers for Harford, Baltimore, Howard, Anne Arundel, or wherever you're looking.
Now, if you're a seller, you might be reading that "41.67% of listings cut prices" stat and feeling a little queasy. I get it. Nobody wants to lower their asking price. It feels like losing.
But here's the reality. Pricing your home correctly from Day One is always better than chasing the market down. I've said this at a hundred listing appointments, and I'll say it again: an overpriced home doesn't sell for more. It sits longer, gets stale, and eventually sells for less than if you'd priced it right in the first place.
Right now, buyers have options. If your home is sitting after two weeks with no showings, the market is telling you something. Listen.
I recently worked with a seller in Harford County who listed at $475,000 in early July. Beautiful house, great location, but crickets. We cut the price to $459,900 three weeks in, and had two offers within the week. They closed at $455,000—still more than they would've gotten if they'd waited until October to drop the price again.
The point is this: if you're selling a home in Maryland or DC right now, work with someone who knows your local market and will give you honest feedback, not just tell you what you want to hear. I spent 20 years in education before I got into real estate, so teaching clients how to read the market is sort of my thing. I'm not here to blow smoke.
If you're thinking about listing, let's talk. My prep guide for Prince George's County sellers is a good starting point, and the same principles apply whether you're in Cecil, Howard, or Anne Arundel.
HousingWire's report also mentioned that pending sales fell year-over-year. That tracks with what I'm seeing locally. Fewer buyers are signing contracts right now compared to last August.
Part of that is rate fatigue. Part of it is economic uncertainty. And part of it is just summer sluggishness. People go on vacation. They wait until after Labor Day to get serious.
But there's a flip side. Redfin reported a small uptick in pending sales in early August—up 0.4% week-over-week on a seasonally adjusted basis. It's not a tidal wave, but it's movement. New listings also showed a pulse.
Translation: the market isn't dead. It's just slow. And in a slow market, the prepared buyer wins.
I've had clients close deals this summer by moving fast when the right house hit the market. One couple in Baltimore County made an offer the same day a listing went live, waived the home inspection (we did a pre-offer walk-through with a contractor), and locked it down before anyone else even scheduled a showing. That kind of speed still works, especially on well-priced homes.
I can't talk about housing without mentioning what's happening in the broader economy. Inflation has cooled a bit—core inflation came in almost spot-on with expectations earlier this week, which is why rates didn't spike again. The odds of a Fed rate hike in September are now looking slim.
That's good news for mortgage rates, at least in the short term. But the Fed isn't cutting rates aggressively either. We're stuck in this holding pattern where rates are high enough to hurt affordability but not high enough to crash the market.
Zillow's analysis put it well: softer jobs data and cooling inflation took some pressure off mortgage rates, but with rates only expected to fall to 6.5% by year-end, elevated borrowing costs will likely slow housing activity in the second half of 2026.
That's the world we're living in. Rates won't save us. Inventory is edging up but still tight. And buyers and sellers both need to adjust their expectations.
If you're a buyer in Maryland, DC, Pennsylvania, or Delaware:
If you're a seller:
You can browse current listings here or get in touch if you want a no-pressure conversation about what's actually moving in your area.
The market is shifting. Not crashing, not booming—just shifting. Inventory is up slightly. Price cuts are common. Buyers are cautious. Sellers are adjusting.
This is actually a pretty normal market, if you can remember what normal used to feel like. It's not the feeding frenzy of 2021. It's not the crash of 2008. It's just... real estate. Houses are selling. Deals are closing. But you have to be smart, patient, and willing to work with the numbers as they are, not as you wish they were.
I spent two decades teaching high school students how to think critically and solve problems. Real estate isn't that different. You look at the data, you adjust your strategy, and you make informed decisions. No drama, no hype, just clear-eyed planning.
If you're ready to buy or sell a home in Harford, Cecil, Baltimore, Anne Arundel, Montgomery, Howard, Prince George's, or anywhere else I'm licensed, let's talk. I'll walk you through exactly what's happening in your local market and help you figure out your next move.
The market's not waiting. Neither should you.
Katrina Kirton Sherrod, REALTOR® · Samson Properties · Licensed in MD, DC, PA & DE · 443-616-9770 · Katrina@kkstherealtor.com
“Owning a home is a keystone of wealth — both financial affluence and emotional security.” — Suze Orman