As we move past the 4th of July holiday and into the heart of summer, Buyers Take Note: Seasonal shifts open opportunities in the Real Estate Market!
The latest ATTOM U.S. Home Affordability Report underscores the challenges that have plagued the national housing market, with median-priced homes remaining less affordable compared to historical levels in 99% of counties analyzed. Locally, we're seeing a similar trend, as major home ownership expenses have grown to consume 35.1% of the average national wage - the highest point since 2007.
For prospective homebuyers, this seasonal shift may open the door to more negotiating power, the ability to include necessary inspections, and the chance to find properties that better fit your budget and needs. Of course, desirable homes are still moving quickly, so working with a knowledgeable local agent will be crucial to navigating this evolving landscape.
Market Pulse: June 26 - July 3
Looking at this week's Market Pulse data from RLAH reveals a noticeable shift in the Market, aligning more closely with the seasonal slowdown we've been anticipating:
New listings received an average of 1.7 offers, down significantly from 2.3 last week.
62% of new contracts attracted multiple offers, a slight increase from 60% last week, but still down from earlier weeks.
These numbers indicate a continued cooling in overall competition, though a majority of properties are still seeing multiple offers.
Looking at the breakdown of offer prices:
54% of offers were above list price (down from 67% last week)
15% were at list price (down from 20% last week)
31% were below list price (up significantly from 13% last week)
This distribution shows a marked shift towards more below-list offers, suggesting buyers are becoming more conservative in their bidding strategies.
In terms of the inspection process, we're seeing a more balanced approach:
38% of offers had no inspection contingency (down from 60% last week)
16% had a pass/fail inspection (down from 20% last week)
23% had a pre-inspection (up significantly from 7% last week)
23% included a full inspection contingency (up from 13% last week)
This shift indicates that buyers are prioritizing due diligence, with a significant increase in both pre-inspections and full inspection contingencies.
These changes align with our expectations of a summer market cooldown. While competition remains present, we're seeing clear signs of a shift towards more balanced conditions. Buyers appear to be gaining leverage, with more below-list offers and a greater emphasis on inspections. Sellers may need to adjust their expectations, particularly regarding price and the likelihood of waived contingencies.
As we dive into the detailed market trends for each area, keep in mind these overall shifts we're observing. The summer slowdown seems to be materializing more concretely, though its impact varies across different segments and locations within Montgomery County.
Now, let's break down the market trends in Montgomery County!
🏡 Bethesda, MD - Single-Family Homes
📊 Median List Price: $2,150,000
🆕 Median Price of New Listings: $1,499,000
🏷️ Price Per Square Foot: $489
⏳ Average Days on Market: 69
📅 Median Days on Market: 42
🔻 Price Decreased: 42%
🔺 Price Increased: 3%
♻️ Relisted: 14%
📦 Inventory: 71
🏠 Median Rent: $5,500
📈 Market Action Index (MAI): 48 (Strong Seller's Market)
Bethesda's single-family home market remains in strong seller's territory, though the MAI has decreased from last month's 51 to 48. Inventory has increased to 71 homes. The median list price holds steady at $2,150,000, with new listings coming on at a lower median of $1,499,000. Homes are selling in a median of 42 days, though the average is higher at 69 days. Price adjustments are common, with 42% of listings seeing price reductions and only 3% experiencing increases.
🏢 Bethesda, MD - Condos/Townhomes
📊 Median List Price: $723,500
🆕 Median Price of New Listings: $677,450
🏷️ Price Per Square Foot: $492
⏳ Average Days on Market: 38
📅 Median Days on Market: 21
🔻 Price Decreased: 14%
🔺 Price Increased: 0%
♻️ Relisted: 9%
📦 Inventory: 22
🏠 Median Rent: $2,870
📈 Market Action Index (MAI): 65 (Strong Seller's Market)
Bethesda's condo and townhome market has strengthened significantly, with the MAI increasing from last month's 55 to 65. Inventory has remained steady at 22 units. The median list price holds at $723,500, with new listings coming on at a slightly lower median of $677,450. Homes are selling quickly, with a median of 21 days on market and an average of 38.
🏡 Chevy Chase, MD - Single-Family Homes
📊 Median List Price: $2,470,000
🆕 Median Price of New Listings: $1,820,000
🏷️ Price Per Square Foot: $633
⏳ Average Days on Market: 53
📅 Median Days on Market: 21
🔻 Price Decreased: 26%
🔺 Price Increased: 3%
♻️ Relisted: 13%
📦 Inventory: 31
🏠 Median Rent: $5,845
📈 Market Action Index (MAI): 50 (Strong Seller's Market)
Chevy Chase's single-family home market has cooled slightly, with the MAI decreasing from last month's 56 to 50. Inventory has increased to 31 homes. The median list price has risen to $2,470,000, though new listings are coming on at a lower median of $1,820,000. Homes are selling quickly, with a median of 21 days on market, though the average is higher at 53 days.
🏢 Chevy Chase, MD - Condos/Townhomes
📊 Median List Price: $665,000
🆕 Median Price of New Listings: $664,000
🏷️ Price Per Square Foot: $542
⏳ Average Days on Market: 48
📅 Median Days on Market: 49
🔻 Price Decreased: 28%
🔺 Price Increased: 0%
♻️ Relisted: 8%
📦 Inventory: 36
🏠 Median Rent: $2,885
📈 Market Action Index (MAI): 40 (Slight Seller's Advantage)
The condo and townhome market in Chevy Chase has improved slightly, with the MAI increasing from last month's 37 to 40, though still indicating only a slight seller's advantage. Inventory has remained steady at 36 units. The median list price has decreased to $665,000, with new listings coming on at a similar median of $664,000. Homes are taking longer to sell, with a median of 49 days on market.
🏡 Gaithersburg, MD - Single-Family Homes
📊 Median List Price: $899,000
🆕 Median Price of New Listings: $887,450
🏷️ Price Per Square Foot: $272
⏳ Average Days on Market: 57
📅 Median Days on Market: 14
🔻 Price Decreased: 33%
🔺 Price Increased: 2%
♻️ Relisted: 6%
📦 Inventory: 49
🏠 Median Rent: $3,075
📈 Market Action Index (MAI): 71 (Strong Seller's Market)
Gaithersburg's single-family home market has strengthened, with the MAI increasing from last month's 69 to 71. Inventory has increased to 49 homes. The median list price is $899,000, with new listings arriving at a slightly lower median of $887,450. Homes are selling quickly, with a median of 14 days on market, though the average is significantly higher at 57 days.
🏢 Gaithersburg, MD - Condos/Townhomes
📊 Median List Price: $432,450
🆕 Median Price of New Listings: $449,000
🏷️ Price Per Square Foot: $277
⏳ Average Days on Market: 25
📅 Median Days on Market: 14
🔻 Price Decreased: 19%
🔺 Price Increased: 3%
♻️ Relisted: 3%
📦 Inventory: 36
🏠 Median Rent: $2,035
📈 Market Action Index (MAI): 85 (Strong Seller's Market)
Gaithersburg's condo and townhome market remains very competitive, though the MAI has decreased slightly from last month's 86 to 85. Inventory has decreased to 36 units. The median list price has increased to $432,450, with new listings arriving at a slightly higher median of $449,000. Homes are selling quickly, with a median of 14 days on market and an average of 25.
🏡 Germantown, MD - Single-Family Homes
📊 Median List Price: $750,000
🆕 Median Price of New Listings: $725,000
🏷️ Price Per Square Foot: $284
⏳ Average Days on Market: 31
📅 Median Days on Market: 14
🔻 Price Decreased: 26%
🔺 Price Increased: 6%
♻️ Relisted: 6%
📦 Inventory: 31
🏠 Median Rent: $2,600
📈 Market Action Index (MAI): 72 (Strong Seller's Market)
Germantown's single-family home market remains firmly in seller's territory, though the MAI has decreased from last month's 81 to 72. Inventory has remained steady at 31 homes. The median list price is $750,000, with new listings coming on at a slightly lower median of $725,000. Homes are selling quickly, with a median of 14 days on market and an average of 31 days.
🏢 Germantown, MD - Condos/Townhomes
📊 Median List Price: $350,000
🆕 Median Price of New Listings: $364,000
🏷️ Price Per Square Foot: $261
⏳ Average Days on Market: 23
📅 Median Days on Market: 14
🔻 Price Decreased: 13%
🔺 Price Increased: 6%
♻️ Relisted: 3%
📦 Inventory: 31
🏠 Median Rent: $2,022
📈 Market Action Index (MAI): 85 (Strong Seller's Market)
Germantown's condo and townhome market remains strongly in seller's territory, though the MAI has decreased from last month's 89 to 85. Inventory has decreased slightly to 31 units. The median list price is $350,000, with new listings coming on at a higher median of $364,000. Homes are selling quickly, with a median of 14 days on market and an average of 23.
🏡 Kensington, MD - Single-Family Homes
📊 Median List Price: $1,170,000
🆕 Median Price of New Listings: $1,895,000
🏷️ Price Per Square Foot: $390
⏳ Average Days on Market: 48
📅 Median Days on Market: 21
🔻 Price Decreased: 37%
🔺 Price Increased: 5%
♻️ Relisted: 0%
📦 Inventory: 19
🏠 Median Rent: $3,500
📈 Market Action Index (MAI): 67 (Strong Seller's Market)
Kensington's single-family home market remains firmly in seller's territory, with the MAI increasing slightly from last month's 66 to 67. Inventory has decreased slightly to 19 homes. The median list price has risen to $1,170,000, though new listings are coming on at a significantly higher median of $1,895,000. Homes are selling in a median of 21 days on market, with an average of 48.
🏡 Potomac, MD - Single-Family Homes
📊 Median List Price: $2,775,000
🆕 Median Price of New Listings: $1,812,449
🏷️ Price Per Square Foot: $361
⏳ Average Days on Market: 113
📅 Median Days on Market: 56
🔻 Price Decreased: 24%
🔺 Price Increased: 3%
♻️ Relisted: 12%
📦 Inventory: 58
🏠 Median Rent: $6,000
📈 Market Action Index (MAI): 50 (Strong Seller's Market)
Potomac's luxury single-family home market remains in strong seller's territory, though the MAI has decreased slightly from last month's 51 to 50. Inventory has increased to 58 homes. The median list price has decreased to $2,775,000, significantly higher than the median price of $1,812,449 for new listings. Homes are taking longer to sell, with a median of 56 days on market and an average of 113 days.
🏡 Rockville, MD - Single-Family Homes
📊 Median List Price: $665,000
🆕 Median Price of New Listings: $724,995
🏷️ Price Per Square Foot: $340
⏳ Average Days on Market: 37
📅 Median Days on Market: 21
🔻 Price Decreased: 24%
🔺 Price Increased: 7%
♻️ Relisted: 12%
📦 Inventory: 41
🏠 Median Rent: $3,450
📈 Market Action Index (MAI): 75 (Strong Seller's Market)
Rockville's single-family home market remains in strong seller's territory, though the MAI has decreased from last month's 79 to 75. Inventory has decreased slightly to 41 homes. The median list price has decreased to $665,000, lower than the median price of $724,995 for new listings. Homes are selling in a median of 21 days on market, with an average of 37.
🏢 Rockville, MD - Condos/Townhomes
📊 Median List Price: $567,000
🆕 Median Price of New Listings: $450,000
🏷️ Price Per Square Foot: $363
⏳ Average Days on Market: 43
📅 Median Days on Market: 35
🔻 Price Decreased: 19%
🔺 Price Increased: 10%
♻️ Relisted: 3%
📦 Inventory: 72
🏠 Median Rent: $2,665
📈 Market Action Index (MAI): 58 (Strong Seller's Market)
Rockville's condo and townhome market remains in strong seller's territory, with the MAI increasing slightly from last month's 57 to 58. Inventory has decreased to 72 units. The median list price has remained steady at $567,000, with new listings arriving at a lower median of $450,000. Homes are selling in a median of 35 days, with an average of 43.
🏡 Silver Spring, MD - Single-Family Homes
📊 Median List Price: $700,000
🆕 Median Price of New Listings: $650,000
🏷️ Price Per Square Foot: $324
⏳ Average Days on Market: 52
📅 Median Days on Market: 28
🔻 Price Decreased: 47%
🔺 Price Increased: 1%
♻️ Relisted: 7%
📦 Inventory: 101
🏠 Median Rent: $3,150
📈 Market Action Index (MAI): 69 (Strong Seller's Market)
Silver Spring's single-family home market remains in strong seller's territory, with the MAI increasing from last month's 67 to 69. Inventory has decreased to 101 homes. The median list price has decreased slightly to $700,000, with new listings coming on at a lower median of $650,000. Homes are selling in a median of 28 days, though the average is higher at 52 days.
🏢 Silver Spring, MD - Condos/Townhomes
📊 Median List Price: $320,500
🆕 Median Price of New Listings: $347,000
🏷️ Price Per Square Foot: $257
⏳ Average Days on Market: 34
📅 Median Days on Market: 28
🔻 Price Decreased: 28%
🔺 Price Increased: 0%
♻️ Relisted: 6%
📦 Inventory: 88
🏠 Median Rent: $1,950
📈 Market Action Index (MAI): 67 (Strong Seller's Market)
Silver Spring's condo and townhome market remains in strong seller's territory, though the MAI has decreased from last month's 70 to 67. Inventory has increased to 88 units. The median list price has decreased slightly to $320,500, with new listings coming on at a higher median of $347,000. Homes are selling in a median of 28 days, with an average of 34 days on market.
📈 Key Trends and Takeaways
Cooling Competition: The average number of offers per listing has decreased to 1.7, down from 2.3 last week, indicating a significant cooling in buyer competition.
Shift in Offer Prices: There's a notable increase in below-list price offers (31%, up from 13% last week) and a decrease in above-list price offers (54%, down from 67%), suggesting buyers are becoming more price-sensitive.
Increased Buyer Caution: The rise in both pre-inspections (23%, up from 7%) and full inspection contingencies (23%, up from 13%) indicates buyers are prioritizing due diligence over waiving contingencies.
Persistent Multiple Offer Scenario: Despite the cooling, 62% of new contracts still attracted multiple offers, showing that desirable properties continue to draw competition.
Market Segmentation: The impact of these changes varies across different price points and locations within Montgomery County, with some areas and property types showing more resilience than others.
Seasonal Shift: These trends align with expectations of a typical summer slowdown, suggesting a move towards a more balanced market.
Implications for Sellers: Sellers may need to adjust their expectations regarding price and the likelihood of receiving offers with waived contingencies.
Opportunities for Buyers: The shift provides more leverage for buyers, potentially opening up opportunities for negotiation and more thorough property inspections.
Varied Market Performance: Despite the overall cooling trend, many areas still maintain strong seller's market conditions, particularly in the condo/townhome segment.
Need for Strategic Pricing: With the increase in price reductions across many areas, accurate initial pricing becomes crucial for sellers to attract buyers in this evolving market.
Overall, while the Montgomery County real estate market remains generally favorable to sellers, we're seeing clear signs of a shift towards more balanced conditions. Both buyers and sellers will need to adapt their strategies to navigate this changing landscape effectively.
As we move deeper into the summer season, the Montgomery County real estate market continues to evolve in line with our expectations. While still predominantly a seller's market, we're seeing clearer signs of increased balance and opportunities for buyers.
For sellers, this changing landscape underscores the importance of strategic pricing and realistic expectations. Properties that are priced right and present well are still attracting multiple offers, but we're seeing fewer instances of waived contingencies and significantly over-list offers.
Buyers may find more opportunities in this market. With increased leverage, there's more room for negotiation and the ability to include necessary contingencies. However, desirable properties are still moving quickly, so being prepared to act decisively remains crucial.
As always, real estate is local, and conditions can vary significantly even within Montgomery County. Whether you're buying or selling, it's essential to work with a knowledgeable local real estate professional who can provide detailed insights into your specific area of interest and guide you through the intricacies of the current market conditions.
If you're considering making a move in this evolving market, now is an excellent time to strategize. I'm here to help you navigate these changes and achieve your real estate goals. Don't hesitate to reach out with any questions or to schedule a consultation.
Stay tuned for next week's report as we continue to track these market shifts. Until then, enjoy the summer weather and have a great week ahead!
Market Monday