By Michael Schiff, The Schiff Home Team
In May 2025, the U.S. housing market finds itself at a turning point. Buying your first home – a milestone once considered a natural step into adulthood – now feels more out of reach than ever. Headlines about million-dollar starter homes and soaring mortgage rates are everywhere, and for many, they raise a simple question: Is it even possible anymore?
The answer, from where I sit every day helping people buy and sell homes: Yes – but you need the right plan, the right mindset, and the right people in your corner.
The Data: What’s Really Going On in the Market
Home Prices Are Climbing
- The national median home price now sits at $403,700, up 2.7% from a year ago.
- Incredibly, over 233 U.S. cities now have starter homes priced at $1 million or more – nearly triple the number from five years ago.
- To afford a median-priced home, buyers now need to earn at least $114,000/year, up from around $67,000 in 2019.
Rates & Affordability Are Creating Pressure
- Mortgage rates are hovering around 6.76%, keeping monthly payments high.
- Construction costs have jumped, with tariffs alone adding nearly $11,000 to the cost of building a new home.
First-Time Buyers Are Feeling It the Most
- The median age of first-time homebuyers is now 38 – the highest it’s ever been.
- They now make up just 24% of all buyers, a historic low.
These numbers are real—and they explain why so many are discouraged. But they’re not the whole story.
Maryland Market Snapshot: A Closer Look at Our Backyard
While national trends paint a challenging picture, let’s focus on what’s happening here in Maryland:
- Median Home Price: As of early 2025, the median home price in Maryland is approximately $406,600, reflecting a 4.9% year-over-year increase.
- Market Dynamics: Homes are spending an average of 46 days on the market, indicating a competitive environment.
- Inventory Levels: The state has about a 2-month supply of homes, suggesting a seller’s market.
- Price Adjustments: Approximately 24.1% of homes have seen price reductions, offering potential opportunities for buyers.
In Baltimore County, where The Schiff Home Team is based:
- Median Home Price: The median home price is around $385,000, up 5% from the previous year.
- Market Activity: Homes are selling quickly, often within 20 days, due to limited inventory and high demand.
These local insights highlight that while challenges exist, there are still viable paths to homeownership in our region.
There’s Still a Path Forward – And We’re Here to Help You Find It
At The Schiff Home Team, we’ve helped hundreds of buyers navigate shifting markets, changing rates, and evolving goals. And we’ve never believed more strongly in our mission to support first-time homebuyers.
Here’s how we’re helping clients win, even now:
1. Education Is Everything
We break it all down – credit, financing options, grant programs, down payments – so our clients know exactly what’s possible. We remove the guesswork and replace it with strategy.
2. Smart Partnerships, Real Access
We partner with lenders, grant programs, and nonprofit organizations that specialize in first-time buyers. These partnerships can lead to lower down payments, reduced closing costs, and tailored financing solutions.
3. Hyperlocal Strategy
We study trends daily, not just nationally, but in your neighborhood. We’re seeing some markets soften – like parts of Florida and California – offering first-time buyers new leverage.
4. We Fight for You
We’re aggressive negotiators, and we advocate fiercely on behalf of our clients. From seller concessions to inspection credits to timing offers perfectly – we’re here to maximize your buying power.
Why This Still Matters
Homeownership is still one of the most powerful paths to building generational wealth. It offers stability, growth, and pride of ownership. And while it’s gotten harder, it’s also gotten more rewarding – for those who are strategic and supported.
If you’ve been feeling like the market is leaving you behind, let’s talk. We’ll help you get clarity on your options, timing, and next steps – and we’ll walk with you every step of the way.
The American Dream isn’t dead. It’s just evolving – and we’re here to help you claim your piece of it.