Hi Everyone!
I hope you had a fantastic weekend! If you were in the market for a new home, this past week offered some great opportunities. Before we dive into the details, I wanted to share a quick heads up: expect a surge in activity this week, followed by a slight dip around June 13th, when Montgomery County Public Schools lets out for the summer.
Now, let's talk about what's happening in our market!
🏘️ Market Pulse: Competition Remains Fierce
My brokerage's latest data shows that competition is still intense. New listings received an average of 1.63 offers, with 70% attracting multiple bidders. Remarkably, 90% of offers were above the list price, 10% were at list, and none were below. While these numbers are slightly lower than last week, it's important to note that the data includes part of the Memorial Day weekend, which typically sees a slowdown in activity.
It's worth mentioning that some of these metrics are slightly lagging and do not fully represent transactions with other brokerages. For example, I was able to leverage the holiday slowdown to help two of my buyers get under contract for homes listed with other brokerages, both priced well below the asking price. It just goes to show that there are always opportunities if you know where to look!
Despite the minor dip in numbers, the market remains highly competitive. Buyers are frequently waiving contingencies to make their offers stand out. This week, 60% of transactions skipped inspections, and 40% opted for pre-inspections, showcasing buyers' willingness to reduce contingencies to secure their dream home.
These metrics confirm that we're still in a seller's market, with buyers driving up prices and making concessions to win the home they want. I expect next week's Market Pulse to show a noticeable increase, more aligned with the current high level of activity.
Now, let's break down the market trends for each area!
🏡 Bethesda, MD - Single-Family Homes
Median List Price: $2,197,450
Median Price of New Listings: $1,549,000
Price Per Square Foot: $459
Average Days on Market: 53
Median Days on Market: 35
Price Decreased: 38%
Price Increased: 1%
Relisted: 10%
Inventory: 78
Median Rent: $5,850
Market Action Index (MAI): 50 (Strong Seller's Market)
Bethesda's single-family homes continue to demonstrate resilience in a robust seller's market. Despite a minor decrease in median list price and an uptick in inventory to 78 homes, demand remains strong. Well-priced properties are being snatched up quickly, as shown by the median DOM of just 35 days. The area's appeal is likely due to its proximity to key amenities and its reputation as a highly desirable place to live.
Keep an eye on the MAI. If it rises, prices will likely follow. However, if it consistently drops, there may be downward pressure on prices.
🏢 Bethesda, MD - Condos/Townhomes
Median List Price: $369,000
Median Price of New Listings: $430,000
Price Per Square Foot: $352
Average Days on Market: 29
Median Days on Market: 21
Price Decreased: 31%
Price Increased: 3%
Relisted: 9%
Inventory: 35
Median Rent: $2,939
Market Action Index (MAI): 55 (Strong Seller's Market)
Bethesda's condo and townhome market remains strong, with high demand and steady inventory supporting a seller's market. Prices are stable for now, but keep an eye on the MAI for any persistent changes that could signal future price movements.
🏡 Chevy Chase, MD - Single-Family Homes
Median List Price: $2,282,500
Median Price of New Listings: $2,850,000
Price Per Square Foot: $555
Average Days on Market: 53
Median Days on Market: 28
Price Decreased: 17%
Price Increased: 4%
Relisted: 17%
Inventory: 24
Median Rent: $6,650
Market Action Index (MAI): 56 (Strong Seller's Market)
Chevy Chase's market is firmly in the seller's territory, with low inventory maintaining upward pressure on prices. Monitor demand levels across all segments for potential market shifts. Inventory trends and MAI will be critical in predicting price changes.
🏢 Chevy Chase, MD - Condos/Townhomes
Median List Price: $750,000
Median Price of New Listings: $421,750
Price Per Square Foot: $514
Average Days on Market: 41
Median Days on Market: 28
Price Decreased: 31%
Price Increased: 0%
Relisted: 8%
Inventory: 39
Median Rent: $2,935
Market Action Index (MAI): 36 (Slight Seller's Advantage)
The condo and townhome market in Chevy Chase has cooled slightly but remains favorable for sellers. Prices are steady, but increasing inventory suggests a potential shift. Continued MAI cooling could lead to price reductions, so watch for persistent changes that may signal a move towards a buyer's market.
🏡 Gaithersburg, MD - Single-Family Homes
Median List Price: $985,000
Median Price of New Listings: $853,950
Price Per Square Foot: $288
Average Days on Market: 58
Median Days on Market: 21
Price Decreased: 35%
Price Increased: 2%
Relisted: 4%
Inventory: 52
Median Rent: $3,300
Market Action Index (MAI): 68 (Strong Seller's Market)
Gaithersburg's single-family home market is vibrant, with a high MAI indicating strong buyer interest and competitive conditions. The relatively low median DOM of 21 days, coupled with a modest inventory increase, shows a balanced supply-demand scenario. While the market is strong, buyers might find occasional price reductions, as indicated by the price movement data.
🏢 Gaithersburg, MD - Condos/Townhomes
Median List Price: $389,900
Median Price of New Listings: $389,000
Price Per Square Foot: $263
Average Days on Market: 12
Median Days on Market: 7
Price Decreased: 27%
Price Increased: 0%
Relisted: 0%
Inventory: 37
Median Rent: $2,100
Market Action Index (MAI): 81 (Strong Seller's Market)
Gaithersburg's condo and townhome market is extremely competitive, with low inventory and homes selling quickly. High demand and fast turnover are the hallmarks of this market. Expect prices to remain firm, with potential increases if the MAI climbs.
🏡 Germantown, MD - Single-Family Homes
Median List Price: $699,900
Median Price of New Listings: $697,500
Price Per Square Foot: $244
Average Days on Market: 21
Median Days on Market: 14
Price Decreased: 40%
Price Increased: 0%
Relisted: 0%
Inventory: 15
Median Rent: $2,500
Market Action Index (MAI): 83 (Strong Seller's Market)
Germantown's single-family home market is highly competitive, with low inventory and strong buyer interest keeping it firmly in the seller's zone. Persistently low inventory will maintain upward pressure on prices, so monitor inventory and MAI closely.
🏢 Germantown, MD - Condos/Townhomes
Median List Price: $380,000
Median Price of New Listings: $375,000
Price Per Square Foot: $263
Average Days on Market: 15
Median Days on Market: 7
Price Decreased: 12%
Price Increased: 3%
Relisted: 6%
Inventory: 34
Median Rent: $2,010
Market Action Index (MAI): 86 (Strong Seller's Market)
Germantown's condo and townhome market is hot, with homes selling quickly and inventory remaining tight. Strong demand continues to drive the market. Watch for any MAI changes that might indicate shifting buyer interest.
🏡 Kensington, MD - Single-Family Homes
Median List Price: $925,000
Median Price of New Listings: $749,000
Price Per Square Foot: $351
Average Days on Market: 41
Median Days on Market: 14
Price Decreased: 30%
Price Increased: 0%
Relisted: 0%
Inventory: 10
Median Rent: $3,850
Market Action Index (MAI): 68 (Strong Seller's Market)
Kensington's single-family homes are in a strong seller's market. The area offers a unique blend of historical charm and modern amenities, attracting consistent buyer interest. Properties are moving fast, as indicated by the quick median DOM. Low inventory and stable pricing suggest that while the market is competitive, there is stability in the current pricing trends.
🏡 Potomac, MD - Single-Family Homes
Median List Price: $2,445,000
Median Price of New Listings: $1,495,000
Price Per Square Foot: $363
Average Days on Market: 103
Median Days on Market: 39
Price Decreased: 20%
Price Increased: 3%
Relisted: 12%
Inventory: 58
Median Rent: $6,050
Market Action Index (MAI): 48 (Strong Seller's Market)
Potomac continues to showcase its status as a luxury market, reflected by a strong seller's market index. This area is known for its exclusivity and high-end properties. While luxury homes take longer to sell, as indicated by the longer average DOM compared to the median, there is significant market activity. Price adjustments and a relatively high inventory for such an upscale market suggest some flexibility in pricing.
🏡 Rockville, MD - Single-Family Homes
Median List Price: $692,500
Median Price of New Listings: $685,000
Price Per Square Foot: $355
Average Days on Market: 30
Median Days on Market: 7
Price Decreased: 35%
Price Increased: 3%
Relisted: 11%
Inventory: 37
Median Rent: $3,300
Market Action Index (MAI): 78 (Strong Seller's Market)
Rockville's market is dynamic, positioned strongly in seller's territory. The area offers a mix of urban and suburban living, appealing to a broad range of buyers. The extremely low median DOM signals a very active market where listings are quickly turning over. Despite some price decreases, the high MAI indicates that demand continues to outpace supply.
🏢 Rockville, MD - Condos/Townhomes
Median List Price: $379,900
Median Price of New Listings: $379,900
Price Per Square Foot: $308
Average Days on Market: 35
Median Days on Market: 14
Price Decreased: 27%
Price Increased: 2%
Relisted: 6%
Inventory: 46
Median Rent: $2,100
Market Action Index (MAI): 42 (Seller's Market)
Rockville's condos and townhomes are in a seller's market, with moderate inventory supporting ongoing demand. Expect stable prices with the possibility of minor increases. Watch for any significant MAI changes that could signal shifts in market conditions.
🏡 Silver Spring, MD - Single-Family Homes
Median List Price: $749,000
Median Price of New Listings: $749,000
Price Per Square Foot: $322
Average Days on Market: 48
Median Days on Market: 14
Price Decreased: 34%
Price Increased: 3%
Relisted: 3%
Inventory: 94
Median Rent: $3,000
Market Action Index (MAI): 69 (Strong Seller's Market)
Silver Spring offers a diverse range of housing options in a strong seller's market. A stable MAI and quick median DOM highlight an environment where well-priced homes are selling fast. Despite a relatively high inventory, the market remains competitive, indicating ongoing buyer interest.
🏢 Silver Spring, MD - Condos/Townhomes
Median List Price: $349,000
Median Price of New Listings: $299,000
Price Per Square Foot: $279
Average Days on Market: 35
Median Days on Market: 21
Price Decreased: 31%
Price Increased: 2%
Relisted: 10%
Inventory: 84
Median Rent: $2,400
Market Action Index (MAI): 39 (Seller's Market)
Silver Spring's condo and townhome market is competitive, with ample inventory providing options for buyers while maintaining a seller's edge. The balance between supply and demand suggests stable prices. Changes in inventory levels will be key to predicting future price movements.
📈 Key Trends and Takeaways
Persistent Seller's Market: The majority of our covered areas continue to experience a strong seller's market. Buyers need to act swiftly and decisively in these competitive conditions.
Price Adjustments: While many regions are showing price increases due to high demand, there are notable areas with price decreases. This suggests some variability and potential negotiation points for buyers.
Demand for Quality: Well-maintained and correctly priced properties are moving quickly off the market, often receiving multiple offers. This trend underscores the importance of pricing strategies and property presentation.
Inventory Levels: Inventory remains low across many segments, maintaining upward pressure on prices. However, any increases in inventory could provide new opportunities for buyers.
Market Resilience: Despite some fluctuation due to seasonal adjustments and external factors, the overall real estate market shows strong resilience and sustained buyer interest.
This real estate market offers diverse opportunities for buyers, sellers, and investors. A well-informed strategy is key to achieving your goals.
As an experienced professional, I provide the knowledge and support to help you navigate the market confidently. By understanding trends and local conditions, we can create a plan that aligns with your objectives.
If you're considering a move or exploring investment opportunities, I'm here to help you make informed decisions and turn your real estate aspirations into reality.
Best,
Corey
P.S. Know someone else who could benefit from these insights? I'd be thrilled to assist them too! Your referrals mean the world to me.
Market Monday: Don't Miss the Full Analysis – Scroll Down!