Equity-Rich Homeowners Are Driving Maryland’s 2026 Real Estate Market

Maryland’s housing market is increasingly being shaped by homeowners who have accumulated substantial equity in their properties.

Many longtime homeowners purchased their homes years ago, when prices and mortgage rates were significantly lower. Today, that built-up equity is giving them greater flexibility to sell, downsize, relocate, purchase a retirement home or move into a property that better fits their current lifestyle.

For Maryland buyers and sellers, the central question is no longer simply, “What are mortgage rates doing?”

A more important question may be:

How much equity do I have, and how can I use it to accomplish my next real estate goal?

Robert B. McArtor, real estate broker with McArtor & Co. of RE/MAX Components, helps homeowners throughout Harford County, Baltimore County, Cecil County and the surrounding Maryland communities answer that question. With real estate and auction experience dating back to 1991, Robert brings decades of market knowledge, negotiation experience and property-marketing expertise to every transaction.

Quick Answer: How Is Home Equity Affecting Maryland’s Housing Market?

Home equity is allowing many Maryland homeowners to move even while mortgage rates remain higher than they were several years ago. Sellers who have owned their homes for a long time may be able to use their sale proceeds to make a large down payment, reduce the mortgage needed for their next home or purchase another property with cash.

This gives equity-rich homeowners more buying power and flexibility than buyers who are entering the market for the first time.

Nationally, baby boomers represented 42% of home buyers and 55% of home sellers in the National Association of REALTORS®’ 2026 generational report. NAR attributes much of that activity to the equity older homeowners have accumulated after many years of ownership. (National Association of REALTORS®)

What Does “Equity-Rich” Mean in Real Estate?

A homeowner’s equity is the difference between the property’s current market value and the amount still owed on mortgages or other loans secured by the property.

For example, suppose a Maryland homeowner owns a property worth approximately $500,000 and owes $175,000 on the mortgage. The homeowner has approximately $325,000 in gross equity before accounting for selling expenses and other costs.

ATTOM defines an equity-rich property as one where the combined estimated loan balances are no more than 50% of the property’s estimated market value.

During the first quarter of 2026, approximately 28.1% of Maryland’s mortgaged residential properties met ATTOM’s equity-rich definition. Garrett, Worcester and Talbot counties had Maryland’s highest percentages of equity-rich properties. Although Maryland’s percentage declined from the previous year, substantial equity continues to influence homeowners’ selling and purchasing decisions. (ATTOM)

Not every homeowner who has equity will meet the technical definition of “equity-rich.” A homeowner may still have enough equity to make a move financially practical.

Maryland Home Prices Continue to Support Homeowner Equity

Maryland home values continued to increase during the first half of 2026.

According to Maryland REALTORS®, the statewide median sales price reached $465,000 in June 2026, an increase of 3.3% from June 2025. The average Maryland sales price increased 3.8% to $565,713. A total of 6,913 homes sold during the month, representing a 2.3% year-over-year increase. (Maryland Association of REALTORS)

Maryland also had only 2.9 months of available housing inventory, with a median market time of 11 days. Inventory below a balanced level generally continues to favor well-prepared sellers, although pricing, condition and location remain critical.

Maryland’s June 2026 median prices in Robert McArtor’s primary service areas included:

• Harford County: $415,000, up 3.7%

• Baltimore County: $400,000, up 2.8%

• Cecil County: $365,000, unchanged year over year

• Baltimore City: $266,500, up 6.6%

These countywide figures do not mean every property increased by the same amount. Home values can vary substantially by neighborhood, property type, acreage, updates, condition, school district and recent comparable sales.

That is why an automated online estimate should not be the only tool used when making a major financial decision.

Robert B. McArtor can prepare a detailed market analysis that examines local sales, current competition and the unique characteristics of your property. His experience with traditional residential sales, estate properties, land, commercial real estate and the auction method of marketing gives homeowners a broader perspective when considering their options.

Why Are Equity-Rich Maryland Homeowners Selling?

Equity does more than create wealth on paper. It can give homeowners the ability to make lifestyle decisions that previously felt financially difficult.

Downsizing to a More Manageable Home

Some longtime homeowners no longer need a large house, multiple floors or extensive property maintenance. Selling may allow them to purchase a smaller home, condominium, townhome or one-level residence while reducing monthly expenses.

Robert helps downsizing sellers examine the complete transition, including:

• The likely net proceeds from their current home

• The cost of purchasing a replacement property

• Potential repairs or improvements before selling

• The timing of the sale and next purchase

• Whether a traditional listing or auction strategy makes sense

His decades of experience are particularly valuable for homeowners who have not sold a property in many years and may be unfamiliar with today’s contracts, inspections, disclosures and financing conditions.

Moving Closer to Family

Many Maryland homeowners are relocating to be closer to children, grandchildren, caregivers or other family members.

NAR’s research found that older homeowners frequently move because of lifestyle choices rather than job changes. These moves may include being closer to family, retiring or finding a property that is easier to maintain. (National Association of REALTORS®)

A knowledgeable local broker can help coordinate a sale in Maryland while also working with an experienced agent in the homeowner’s destination market.

Purchasing a Retirement or Second Home

A homeowner with significant equity may be able to apply a large portion of the proceeds toward a retirement property or second home.

The goal is not always to purchase a less expensive property. Some sellers use equity to buy a newer home with fewer maintenance concerns, a first-floor owner’s suite, better accessibility, community amenities or a more desirable location.

Moving Up to a Larger Home

Equity is not limited to retiring homeowners.

Older millennials between ages 36 and 45 are also using equity from their first homes to purchase larger properties. NAR reports that this group has the highest median household income among current generational buyers and often purchases some of the market’s largest homes. (National Association of REALTORS®)

For a growing Maryland family, the equity in a townhouse, condominium or starter home may provide the down payment needed for a detached home, additional bedrooms, more land or a preferred school district.

Should You Give Up a Low Mortgage Rate to Move?

This is one of the most important questions facing Maryland homeowners.

A homeowner with a mortgage rate near 3% or 4% may hesitate to sell and take on a new loan at a higher rate. That hesitation is understandable, but the mortgage rate is only one part of the decision.

Other considerations include:

• How much equity will be available after the sale?

• Can the equity reduce the amount that must be borrowed?

• Would the next home lower maintenance, utility or repair costs?

• Does the present home still meet the owner’s physical and lifestyle needs?

• Would moving improve the owner’s commute or proximity to family?

• Could a mortgage-rate buydown or other financing strategy help?

• What will happen if the homeowner waits another two or three years?

A low mortgage rate can be valuable, but it does not automatically mean staying is the best choice.

Robert B. McArtor helps homeowners evaluate the entire financial and personal picture. Rather than pressuring clients to sell, he helps them understand the likely value of their property, estimated selling expenses, potential proceeds and available replacement-home options.

Why Equity-Rich Sellers Can Be Strong Buyers

A seller with substantial equity may have several competitive advantages when purchasing another Maryland home.

The proceeds may allow the buyer to:

• Make a larger down payment

• Reduce the size of the next mortgage

• Avoid private mortgage insurance

• Offer a stronger earnest-money deposit

• Cover an appraisal difference when appropriate

• Purchase without a home-sale contingency

• Pay cash for the next property

• Reserve funds for renovations or moving expenses

Every transaction should be evaluated individually. Buyers should not use all available cash simply to make an offer look stronger without considering reserves, taxes, improvements and long-term financial needs.

Robert’s extensive negotiating experience helps clients build offers that are competitive without exposing them to unnecessary risk.

What Does This Market Mean for Maryland First-Time Buyers?

Equity-rich buyers create additional competition, especially when they can make large down payments or cash offers. However, that does not mean first-time buyers should give up.

NAR reported that first-time buyers represented only 21% of buyers during its most recent annual reporting period—the lowest percentage in its historical data. The median age of a first-time buyer had also reached 40. More encouragingly, first-time buyers represented 32% of recent purchasers in NAR’s March 2026 confidence survey, suggesting that opportunities were beginning to improve in parts of the market. (National Association of REALTORS®)

First-time buyers may improve their position by:

• Obtaining full lender approval before touring homes

• Understanding the complete monthly payment

• Exploring available down-payment and closing-cost programs

• Considering townhomes, condominiums or homes needing cosmetic work

• Expanding the geographic search area

• Responding quickly when the right property becomes available

• Working with an agent who understands local contract strategies

Robert B. McArtor helps buyers understand more than the listings they see online. He evaluates comparable sales, property condition, neighborhood activity, potential resale value and the strengths and risks of the proposed contract.

Why Experience Matters in an Equity-Driven Market

NAR reports that 88% of buyers purchased through a real estate agent and 91% of sellers worked with an agent. Consumers across generations identified negotiation, professional resources and knowledge of local housing areas as important benefits of working with an agent. (National Association of REALTORS®)

An equity-driven transaction can involve more than placing a sign in the yard.

A seller may need help deciding whether to:

• Sell before purchasing

• Purchase before selling

• Use a rent-back agreement

• Make repairs or sell as-is

• Complete updates before listing

• Use traditional marketing or the auction method

• Coordinate an estate or inherited-property sale

• Evaluate multiple offers with different financing terms

Robert has worked in real estate and auctions since 1991 and has been a REALTOR® since 2007. As a broker with RE/MAX Components and leader of McArtor & Co., he combines extensive transaction experience with current technology, digital marketing, local market analysis and hands-on client representation.

That experience is especially important when a homeowner’s accumulated equity represents one of the largest financial assets the family owns.

How Can Robert B. McArtor Help You Use Your Home Equity?

Robert begins by helping homeowners answer four important questions:

1. What is my home realistically worth in today’s market?

2. Approximately how much could I net after the mortgage and selling expenses?

3. What type of property could I purchase with those proceeds?

4. What selling and purchasing strategy offers the best combination of value, timing and protection?

From there, Robert can develop a personalized plan for preparing the property, determining a pricing strategy, marketing the home and coordinating the next purchase.

Whether you are selling a longtime family residence in Harford County, moving up in Baltimore County, purchasing your first home in Cecil County or downsizing from a property elsewhere in Maryland, Robert B. McArtor offers the experience needed to guide you through the process.

Your Home Equity May Be the Key to Your Next Move

Many Maryland homeowners have more financial flexibility than they realize.

The increase in Maryland home values, combined with years of mortgage payments, may have created enough equity to make downsizing, relocating, retiring or moving up possible—even in a higher-rate environment.

The first step is not committing to sell. The first step is obtaining reliable information.

A professional home-equity and market review with Robert B. McArtor can help you understand your potential sale price, likely proceeds and available options without relying exclusively on an automated online estimate.

When you are ready to explore what your Maryland home equity could make possible, contact Robert B. McArtor and McArtor & Co. of RE/MAX Components for experienced, straightforward guidance.

Frequently Asked Questions About Home Equity and Maryland Real Estate

What does it mean to be equity-rich?

An equity-rich homeowner owes no more than approximately 50% of the property’s estimated market value on loans secured by the home. For example, a homeowner with a $500,000 property and less than $250,000 in secured loan balances would generally meet that definition.

How do I calculate the equity in my Maryland home?

Subtract the approximate balance of all mortgages and secured property loans from the home’s estimated current market value. The result is your gross equity. Your actual proceeds after a sale will also be affected by closing costs, commissions, repairs, taxes, liens and other transaction expenses.

How can I find out what my Maryland home is worth?

Request a comparative market analysis from an experienced local real estate professional. Robert B. McArtor examines recent comparable sales, current listings, property condition, location, acreage, improvements and neighborhood demand to develop a realistic pricing range.

Is Maryland currently a buyer’s market or a seller’s market?

Maryland remained a seller-leaning market in June 2026, with approximately 2.9 months of available inventory and a median market time of 11 days. Conditions vary by county, price range and property type, so individual homes may experience very different levels of demand.

What was the median Maryland home price in June 2026?

The statewide median sales price was $465,000, an increase of 3.3% compared with June 2025. The statewide average sales price was $565,713. (Maryland Association of REALTORS)

Can I use my home equity as a down payment on another home?

Yes. After your current home is sold and the mortgage and selling expenses are paid, the remaining proceeds can generally be used toward the down payment or purchase of another property.

Can I buy another house before selling my current home?

Possibly. Available strategies may include bridge financing, home-equity financing, recasting, a home-sale contingency or purchasing with available cash. The appropriate option depends on your equity, income, debt, credit, lender requirements and risk tolerance.

Is downsizing always less expensive?

No. A smaller home may still cost more if it is newer, located in a highly desirable community or offers premium amenities. Downsizing should be evaluated based on the total purchase price, mortgage payment, taxes, association fees, utilities, maintenance and lifestyle benefits.

Should I sell even though I have a low mortgage rate?

That depends on your goals. Keeping a low interest rate can be financially beneficial, but it should be weighed against the home’s suitability, maintenance costs, needed repairs, family considerations and the amount of equity available for another purchase.

Can older homeowners buy another home with cash?

Yes. Some longtime homeowners have enough net proceeds to purchase a smaller or less expensive property without financing. Before making a cash purchase, buyers should consider reserves, taxes, improvements, healthcare expenses and other long-term financial needs.

Can first-time buyers compete with equity-rich buyers?

Yes, although preparation is critical. A strong lender approval, reasonable contract terms, sufficient deposit, flexibility and an experienced buyer’s agent can make an offer more competitive. Some buyers may also qualify for down-payment or closing-cost assistance.

Does Robert B. McArtor help with downsizing and estate properties?

Yes. Robert assists with traditional residential sales, downsizing, estate and probate properties, inherited homes, land, commercial real estate and auction sales. His auction and real estate experience dates back to 1991.

What areas does Robert B. McArtor serve?

Robert primarily serves Harford County, Baltimore County, Cecil County, Baltimore City and surrounding Maryland communities through McArtor & Co. of RE/MAX Components.

Why should I choose Robert B. McArtor to sell my Maryland home?

Robert offers decades of real estate and auction experience, detailed local market knowledge, professional property marketing and skilled contract negotiation. He helps clients evaluate not only what their home may sell for, but also how the sale fits into their larger financial and lifestyle plans.