The Quarter In Review
Second Quarter
The second quarter of 2025 revealed a market of quiet strength and discernment in Greater Annapolis. While the broader economy softened—GDP slipped, consumer sentiment cooled, and mortgage rates eased—the local housing market responded with poise. Sales surged across the board, volume soared, and pricing marched upward, especially in the $1M–$3M tier. Luxury pace stayed brisk, and even as waterfront activity slowed modestly, value held. Inventory rose just enough to temper the frenzy without stripping away leverage. This report captures a nuanced snapshot: confident buyers, resilient sellers, and a community market that knows its worth.
Greater Annapolis Snapshot
This snapshot reflects spring-season market activity across Greater Annapolis.
$1,288,397,108 Total Sales Volume | 2,047 Total Transactions | 2.1 Months of Inventory |
|---|---|---|
12 Median Days on Market | $552,686 Median Sales Price | 100.1% List to Sales Price Ratio |
Luxury Markets
Luxury buyers re-engaged selectively during the spring period.
196 Sales in Q2 | $1,716,175 Average Price in Q2 | 5 Average DOM in Q2 |
|---|
Luxury homes are defined as properties priced above $1M.
Figures reflect QTD closed sales from the most recent quarterly reporting period.
Waterfront Markets
Greater Annapolis waterfront activity strengthened materially during Q2. The market recorded 111 waterfront sales, 113.5% more than in Q1 and 18.1% above Q2 2025. While the spring season explains part of the sequential increase, the annual gain establishes a deeper pool of completed waterfront transactions than during the prior-year quarter.
Liquidity improved more clearly than pricing. Median market time fell from 39 days in Q1 to 9 days, a 77.6% reduction, and was 36.6% shorter than a year earlier. Waterfront properties therefore moved in considerably less time than the 24-day median for the Greater Annapolis market overall. The sale-to-list ratio also strengthened to 98.7% from 95.1% in the first quarter, indicating closer alignment between sellers and the buyers who ultimately closed.
Price measures remained more restrained. The average waterfront sale price declined 3.1% quarter over quarter and 5.8% year over year to $1,660,933. Median price per square foot increased sharply from Q1 to $549.46 but remained 3.0% below Q2 2025. This divergence suggests that the composition of waterfront sales changed during the quarter, potentially broadening beyond the highest total-price properties. Q2 was therefore defined less by generalized price expansion than by stronger transaction velocity and decisive demand for well-positioned waterfront inventory.
111 Sales in Q2 | $1,660,933 Average Price in Q2 | 9 Average DOM in Q2 |
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Waterfront homes are defined as properties with direct water access from the property.
Figures reflect QTD closed sales from the most recent quarterly reporting period.
This Quarter's Top Sales
$7,100,000744 Skywater Rd, Gibson Island, MD 21056 | $4,500,000223 Winchester Beach Dr, Annapolis, MD 21409 | $3,595,0001320 Tar Cove Rd, Pasadena, MD 21122 | $3,517,50011 Southgate Ave, Annapolis, MD 21401 | $3,500,000208 Wardour Dr, Annapolis, MD 21401 | $3,250,000211 Norwood Rd, Annapolis, MD 21401 | $3,100,00021 Southgate Ave, Annapolis, MD 21401 | $3,025,000196 Southdown Rd, Edgewater, MD 21037 | $2,950,000796 Canvasback Ct, Arnold, MD 21012 | $2,800,0001623 St Giles Rd, Gibson Island, MD 21056 |
Buyer Behavior
Buyers acted with intention as inventory expanded.
Town Spotlights
Within the region, certain communities stood out during the quarter based on activity and buyer interest.
Annapolis
Annapolis delivers a distinctive blend of historic charm, maritime culture, and walkable urban living, attracting residents drawn to water access, dining, and cultural vibrancy.
Arnold
Arnold supports an active, community-focused lifestyle shaped by nearby waterways, parks, and trails, paired with everyday convenience close to downtown Annapolis.
Davidsonville
Davidsonville appeals to buyers seeking space, privacy, and a semi-rural setting, balancing estate-style living with convenient access to Annapolis and regional centers.
Looking Ahead
Market conditions will continue to reflect seasonal normalization.