Home Buyer Demand Just Collapsed — Here's What That Means for You
The biggest March sales drop since 2009 has sellers sweating. Should you be?
A recent video from Reventure Consulting broke down what the Wall Street Journal called the biggest home sales collapse since 2009 — and as someone who lives and breathes this market every single day, I can tell you: they’re not wrong.
But here’s what they didn’t say — and what you won’t hear on national news:
How this affects you if you're buying or selling right here in Maryland.
Let’s break it down and cut through the noise.
It’s Not the Rate — It’s the Price
The data is clear: March 2025 home sales dropped 5.9%, and it’s not just because of interest rates. A staggering 72% of potential buyers say it’s the price that’s keeping them out of the game — not the economy, not job worries, not inflation.
Sellers who are still pricing homes like it’s 2021? You're chasing ghosts.
Buyers are savvier than ever — and they’re tired of overpaying.
Real Talk: Mortgage payments now chew up 38% of household income. That’s the highest it’s been in over 70 years — and it’s killing affordability.
The Bid-Ask Gap Is Choking the Market
There’s a massive disconnect between what buyers can afford and what sellers are asking. That’s what the pros call the “bid-ask spread.” I call it the reason listings are sitting longer and price drops are getting deeper.
Homes outside Dallas? $85K price cuts and still no takers.
In San Diego? Price slashes across the board.
Here in Baltimore? Some sellers are slowly waking up… but many still haven’t gotten the memo.
Tip: If your home’s been on the market 3+ weeks with crickets, your pricing is the problem.
What Smart Buyers (and Sellers) Are Doing Right Now
This is a reset — not a crash. And resets create opportunity… if you’re strategic.
If you’re buying:
Watch for overpriced listings that have lingered — there’s leverage there.
Get pre-approved and know your monthly limit.
Be patient, but ready. Motivated sellers will deal.
If you’re selling:
Ditch the “Zillow fantasy pricing.”
Listen to your agent (or better yet, hire one who knows what the hell they’re doing).
Make your listing stand out with pro marketing — and a price that reflects 2025, not 2022.
Local Matters — But No One’s Immune
Yes, inventory in parts of the Northeast and Midwest is still tight. But even here in Baltimore County and Harford County, I’m seeing more price reductions and longer days on market than we’ve seen in a while.
You can’t outrun affordability.
Mistake: Waiting too long to adjust your price just gives the competition time to undercut you and steal your buyer.
My Take? The Market's Not Crashing — It's Correcting
This needed to happen. Home prices outpaced reality for too long.
Now, we’re seeing a balancing act: price expectations vs. actual buying power.
If you’re a seller, don’t panic — but don’t bury your head either. You need a plan, a strategy, and someone in your corner who can get it done in this market — not the one we wish we still had.
If you’re a buyer, this might be the best time in years to negotiate. You have leverage. Use it.
Dan McDevitt
Realtor | Realvolution Homes Group
Licensed In Delaware & Maryland
