Not every property boom in Maryland is built to last. Using the Zillow Home Values Index, analysts have pinpointed 20 towns showing troubling signs that a price correction could be looming. These communities share key warning signals: home values stretched far above historical trends, heavy price volatility, and market patterns that echo past crashes. Whether you’re planning to buy, invest, or wait it out, knowing where markets look unstable could help you avoid costly surprises.
20. Maugansville – Crash Risk Percentage: 41.52%
- Crash Risk Percentage: 41.52%
- Historical crashes (8%+ drops): 1
- Worst historical crash: -8.4% (2012)
- Total price increase since 2010: 77.2%
- Overextended above long-term average: 46.5%
- Price volatility (annual swings): 5.2%
- Current 2025 price: $299,582
Maugansville shows a notable 46.5% overextension above its long-term price trend, paired with a price volatility of 5.2%—a signal that this market may be less stable than it appears. Despite a respectable 77.2% total increase in prices since 2010, the town has seen at least one significant crash in recent memory: a drop of 8.4% in 2012. Current prices hover just under $300,000, raising concerns about how long they can remain elevated without another correction.
Maugansville – Rising Prices Meet Familiar Risks
Located in Washington County near the Pennsylvania border, Maugansville offers small-town appeal and commuter access to Hagerstown and the broader I-81 corridor. Home values have grown steadily in recent years, but the pace may now be exceeding sustainable levels. With a near 50% overextension above historical norms, buyers may be paying more than what long-term trends would support.
The town’s relatively low volatility compared to some others on this list may provide a cushion, but the lingering memory of its 2012 dip shows that price drops aren’t off the table. If broader market conditions tighten or if regional demand cools, Maugansville could face renewed price pressure. At just under $300K, affordability may help, but it’s no guarantee against a slide.
19. Pocomoke City – Crash Risk Percentage: 42.77%
- Crash Risk Percentage: 42.77%
- Historical crashes (8%+ drops): 1
- Worst historical crash: -10.3% (2011)
- Total price increase since 2010: 91.7%
- Overextended above long-term average: 47.8%
- Price volatility (annual swings): 6.0%
- Current 2025 price: $226,964
Pocomoke City’s housing market has seen nearly 92% growth since 2010, but it’s now sitting nearly 48% above its long-term price average — a red flag for sustainability. Its crash risk score of 42.77% is compounded by a significant 10.3% decline back in 2011. With moderate price volatility and sub-$230K prices, the town looks affordable on the surface, but its trajectory suggests that prices could retrace if demand softens.
Pocomoke City – Elevated Growth in a Price-Sensitive Market
Situated along the banks of the Pocomoke River near the Virginia border, this town is often praised for its historic downtown and natural beauty. But its housing market has outpaced fundamentals, with current prices far above historical norms. While still one of the more affordable towns in the state, that may not shield it from correction, especially given its past vulnerability to sharp downturns.
Pocomoke’s modest volatility and relatively low entry prices may attract buyers, but with a 2011 crash on record and current pricing detached from long-term averages, there’s a clear risk that values could slip. A cooling off period may already be underway.
18. Hancock – Crash Risk Percentage: 43.27%
- Crash Risk Percentage: 43.27%
- Historical crashes (8%+ drops): 1
- Worst historical crash: -12.3% (2011)
- Total price increase since 2010: 67.0%
- Overextended above long-term average: 49.6%
- Price volatility (annual swings): 6.9%
- Current 2025 price: $253,710
Hancock’s price gains have been more modest than some others on the list, but that hasn’t stopped the town from becoming nearly 50% overextended relative to its long-term trend. A 12.3% crash in 2011 still stands out as a reminder of its past fragility. With prices now around $254K, the town sits in a vulnerable position, particularly given a near-7% annual volatility rate.
Hancock – High Risk Despite Modest Growth
Tucked in Maryland’s narrow western panhandle along the Potomac River, Hancock is a small town with a rich colonial history. Its market avoided the eye-popping appreciation seen in coastal counties, but prices have still risen enough to raise concerns about sustainability…