Market Update · August 14, 2026 · 6 min read
Summer in the Mid-Atlantic usually means slower showings and longer days on market. Not this year.
HousingWire reported today that from Rochester to Boston and Buffalo, the common thread across Northeast housing markets is brutally limited inventory and buyers who are ready to chase. And folks, that story isn't stopping at the New York border. I'm seeing it every single weekend here in Maryland, DC, Pennsylvania, and Delaware.
The numbers back it up. Mortgage rates dropped to 6.67% this week according to Freddie Mac's latest survey, down from the near-7% territory we were sitting in just a few weeks ago. That's given some buyers a little breathing room, but it hasn't solved the real problem: there just aren't enough houses.
Let me paint you a picture from last weekend's open house in Harford County.
I had a lovely three-bedroom rancher listed at a fair price—not a steal, but not overpriced either. The house had been updated nicely, nothing fancy, just clean and move-in ready. We scheduled the open house for Sunday, 1-3 p.m. By 12:45 there were already four cars parked out front. By 1:30 we'd seen seventeen groups. Seventeen. For a regular Sunday in mid-August.
Three offers came in by Monday morning.
That's not normal for August, even in a decent market. But when Redfin reports that the number of U.S. homebuyers dropped to a record low in July—about 967,000 buyers compared to 1,463,000 sellers—you'd think we'd see less competition, right?
Wrong.
Because while the number of buyers nationwide is down, the buyers who are left are serious. Pre-approved. Ready to move. And they're all fishing in the same tiny pond of available homes.
I spent twenty years in education before I became a realtor, so I can't help but ask: why is this happening?
A few reasons, and they're all tangled together.
First, mortgage rates. Yes, 6.67% is better than 7%, but it's still high enough that current homeowners with 3% or 4% loans are staying put. They'd love to move up or downsize, but the math doesn't math. Selling means trading a cheap loan for an expensive one, and most people aren't willing to do that unless they absolutely have to.
Second, builders haven't caught up. We're still dealing with the hangover from years of underbuilding after the 2008 crash. New construction is happening—I've worked with buyers in Howard and Anne Arundel counties who've gone that route—but it's not enough to fill the gap.
Third, and this one's specific to our region: people want to live here. The Baltimore-Washington corridor offers jobs, schools, culture, and a cost of living that's still reasonable compared to Boston or New York. That keeps demand steady even when the national picture looks shaky.
If you're a buyer, here's the truth: this is not an easy market, but it's not an impossible one either.
You need to be ready to move fast. That means getting pre-approved before you tour a single house. It means knowing your must-haves versus your nice-to-haves. And it means working with someone who knows the neighborhoods you're targeting—whether that's Cecil County, Prince George's, York County in Pennsylvania, or New Castle County in Delaware.
I wrote recently about what I tell every first-time buyer before we start looking, and it all applies here. Preparation wins in a low-inventory market.
Also, don't sleep on the slightly-less-sexy listings. Everyone wants the Instagram-perfect house with the white kitchen and the farmhouse sink. But some of the best deals I've seen this summer have been homes that needed a little cosmetic love. A few weekends of paint and new fixtures can turn a "meh" house into your dream home, and you'll pay $30,000 less for the privilege.
The latest Redfin data shows pending home sales edged up 0.4% in early August, so there are deals getting done. It's just that you have to be strategic.
If you're thinking about selling a home in Maryland or the surrounding areas, this is your moment.
Limited inventory means your house will get attention. It means you can price it fairly and still expect competitive offers. It means you don't have to repaint every room or stage like you're auditioning for HGTV.
But—and this is important—don't get greedy.
I've seen a handful of sellers this summer overprice their homes, thinking the tight market gives them license to shoot for the moon. And you know what happens? The house sits. Buyers might be eager, but they're not stupid. They've done their homework. If your three-bedroom in Baltimore County is listed $40,000 above every comparable sale in the last six months, they'll just move on to the next listing.
I recently broke down what Maryland sellers actually net after closing, and the math works a lot better when your house sells in the first two weeks than when it lingers for sixty days and you end up cutting the price twice.
Price it right. Make it show-ready. And let the inventory shortage work for you instead of against you.
You might have seen headlines about foreclosure rates climbing in 2026. HousingWire published a piece today explaining why those gains are not a signal of an impending housing crash, and I agree.
The New York Fed's foreclosure index is still below 2019 levels, and new foreclosure listings remain muted. What we're seeing is a normalization after years of forbearance programs and emergency protections. It's not fun for the families involved, but it's not a systemic collapse either.
On the inflation front, recent reports show cooling, which is why the Federal Reserve seems unlikely to hike rates in September. That's good news for mortgage rates, which should hold relatively steady or even drift a bit lower in the coming weeks.
But here's the thing: even if rates drop to 6.5% or 6.25% by the end of the year, we're still not going back to the 3% days. That ship has sailed. So if you're waiting for rock-bottom rates to make your move, you might be waiting a very long time.
The Northeast housing market is hot right now because inventory is tight and buyers are motivated.
If you're selling, take advantage. If you're buying, don't get discouraged. The right strategy and the right partner make all the difference.
I work across Maryland (Cecil, Harford, Montgomery, Howard, Anne Arundel, Charles, Baltimore County, and Baltimore City), DC, Pennsylvania (York and Lancaster counties), and Delaware (New Castle County). I've seen this market from every angle, and I'm happy to walk you through what it looks like in your specific neighborhood.
Check out my current listings or reach out if you want to talk strategy. I don't do high-pressure sales. I just tell you what's actually happening and help you make a smart decision.
Because at the end of the day, whether you're buying your first home in Bel Air or selling your forever house in Silver Spring, you deserve someone in your corner who knows this market inside and out.
And who won't feed you a bunch of real estate jargon while doing it.
Katrina Kirton Sherrod, REALTOR® · Samson Properties · Licensed in MD, DC, PA & DE · 443-616-9770 · Katrina@kkstherealtor.com
“The problem with waiting for the perfect house is that someone imperfect already bought it.” — Anonymous open-house guest