Welcome back to another edition of Market Monday, your weekly dose of Montgomery County real estate insights! I hope everyone had a wonderful week and you are surviving this heatwave.
Previously I predicted that we would start to see a slowdown as both public and private schools concluded their academic year. This week's data seems to confirm that prediction, showing some notable changes in market dynamics.
Market Pulse: June 12 - June 18
This week's Market Pulse data reveals some interesting shifts in the Montgomery County real estate market, aligning with our expectations of a seasonal slowdown:
New listings received an average of 2.1 offers, down from 2.8 last week.
68% of new contracts attracted multiple offers, a decrease from 71% last week.
These numbers indicate a slight cooling in competition, though the market remains active.
Looking at the breakdown of offer prices:
58% of offers were above list price (up slightly from 57% last week)
31% were at list price (up from 25% last week)
11% were below list price (down from 18% last week)
This distribution suggests a shift towards more at-list offers and fewer below-list offers, potentially indicating more realistic pricing by sellers and a bit less aggressive bidding by buyers.
In terms of the inspection process, that’s where we are seeing significant changes:
36% of offers had no inspection contingency (down sharply from 57% last week)
11% had a pass/fail inspection (down from 21% last week)
21% had a pre-inspection (up from 14% last week)
32% included a full inspection contingency (up dramatically from 8% last week)
This data points to a market where buyers are becoming more cautious, with a significant increase in full inspection contingencies and a decrease in waived inspections. This aligns with our expectation of a seasonal slowdown, as buyers may feel less pressure to make risky offers without proper inspections.
These changes support our prediction of a market cooldown as we enter the summer season. While the market remains competitive, we're seeing clear signs of a shift towards more balanced conditions. Buyers seem to be gaining a bit more leverage, while sellers may need to adjust their expectations.
As we dive into the detailed market trends for each area, keep in mind these overall shifts we're observing. The summer slowdown appears to be materializing, but its impact varies across different segments of the Montgomery County market.
Now, let's break down the market trends for each area!
Bethesda, MD - Single-Family Homes
📊 Median List Price: $2,199,000
🆕 Median Price of New Listings: $1,699,000
🏷️ Price Per Square Foot: $477
⏳ Average Days on Market: 70
📅 Median Days on Market: 42
🔻 Price Decreased: 47%
🔺 Price Increased: 3%
♻️ Relisted: 11%
📦 Inventory: 64
🏠 Median Rent: $5,500
📈 Market Action Index (MAI): 49 (Strong Seller's Market)
Bethesda's single-family home market remains in strong seller's territory, though the MAI has decreased slightly from last month's 50 to 49. Inventory has decreased to 64 homes. The median list price is $2,199,000, with new listings coming on at a lower median of $1,699,000. Homes are selling in a median of 42 days, though the average is higher at 70 days. Price adjustments are common, with 47% of listings seeing price reductions and only 3% experiencing increases.
Bethesda, MD - Condos/Townhomes
📊 Median List Price: $539,900
🆕 Median Price of New Listings: $489,900
🏷️ Price Per Square Foot: $374
⏳ Average Days on Market: 36
📅 Median Days on Market: 21
🔻 Price Decreased: 22%
🔺 Price Increased: 0%
♻️ Relisted: 9%
📦 Inventory: 23
🏠 Median Rent: $2,883
📈 Market Action Index (MAI): 60 (Strong Seller's Market)
Bethesda's condo and townhome market has strengthened, with the MAI increasing from last month's 55 to 60. Inventory has decreased to 23 units. The median list price remains at $539,900, with new listings coming on at a lower median of $489,900. Homes are selling faster, with a median of 21 days on market and an average of 36.
Chevy Chase, MD - Single-Family Homes
📊 Median List Price: $2,400,000
🆕 Median Price of New Listings: $3,349,000
🏷️ Price Per Square Foot: $580
⏳ Average Days on Market: 51
📅 Median Days on Market: 21
🔻 Price Decreased: 22%
🔺 Price Increased: 4%
♻️ Relisted: 11%
📦 Inventory: 27
🏠 Median Rent: $6,000
📈 Market Action Index (MAI): 53 (Strong Seller's Market)
Chevy Chase's single-family home market has cooled slightly, with the MAI decreasing from last month's 56 to 53. Inventory has decreased slightly to 27 homes. The median list price has increased to $2,400,000, with new listings coming on at a significantly higher median of $3,349,000. Homes are selling quickly, with a median of 21 days on market, though the average is higher at 51 days.
Chevy Chase, MD - Condos/Townhomes
📊 Median List Price: $737,500
🆕 Median Price of New Listings: $312,450
🏷️ Price Per Square Foot: $525
⏳ Average Days on Market: 40
📅 Median Days on Market: 42
🔻 Price Decreased: 28%
🔺 Price Increased: 0%
♻️ Relisted: 8%
📦 Inventory: 36
🏠 Median Rent: $2,885
📈 Market Action Index (MAI): 38 (Slight Seller's Advantage)
The condo and townhome market in Chevy Chase has slightly improved, with the MAI increasing from last month's 36 to 38, though still indicating only a slight seller's advantage. Inventory has increased to 36 units. The median list price has decreased to $737,500, significantly higher than the median price of $312,450 for new listings. Homes are taking longer to sell, with a median of 42 days on market.
Gaithersburg, MD - Single-Family Homes
📊 Median List Price: $889,900
🆕 Median Price of New Listings: $748,800
🏷️ Price Per Square Foot: $283
⏳ Average Days on Market: 75
📅 Median Days on Market: 49
🔻 Price Decreased: 31%
🔺 Price Increased: 7%
♻️ Relisted: 9%
📦 Inventory: 45
🏠 Median Rent: $3,375
📈 Market Action Index (MAI): 68 (Strong Seller's Market)
Gaithersburg's single-family home market remains strong, with the MAI holding steady at 68. Inventory has remained steady at 45 homes. The median list price is $889,900, with new listings arriving at a lower median of $748,800. Homes are selling in a median of 49 days, though the average is higher at 75 days. Price cuts are occurring on 31% of listings, while 7% have increased.
Gaithersburg, MD - Condos/Townhomes
📊 Median List Price: $375,000
🆕 Median Price of New Listings: $395,000
🏷️ Price Per Square Foot: $257
⏳ Average Days on Market: 19
📅 Median Days on Market: 7
🔻 Price Decreased: 16%
🔺 Price Increased: 2%
♻️ Relisted: 2%
📦 Inventory: 45
🏠 Median Rent: $2,018
📈 Market Action Index (MAI): 85 (Strong Seller's Market)
Gaithersburg's condo and townhome market remains very competitive, with the MAI increasing from last month's 81 to 85. Inventory has increased to 45 units. The median list price is $375,000, with new listings arriving at a slightly higher median of $395,000. Homes are selling exceptionally quickly, with a median of just 7 days on market and an average of 19.
Germantown, MD - Single-Family Homes
📊 Median List Price: $699,900
🆕 Median Price of New Listings: $774,900
🏷️ Price Per Square Foot: $242
⏳ Average Days on Market: 26
📅 Median Days on Market: 21
🔻 Price Decreased: 32%
🔺 Price Increased: 0%
♻️ Relisted: 0%
📦 Inventory: 19
🏠 Median Rent: $2,500
📈 Market Action Index (MAI): 77 (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 84 to 77. Inventory has held steady at 19 homes. The median list price is $699,900, with new listings coming on at a higher median of $774,900. Homes are selling quickly, with a median of 21 days on market and an average of 26.
Germantown, MD - Condos/Townhomes
📊 Median List Price: $350,000
🆕 Median Price of New Listings: $419,900
🏷️ Price Per Square Foot: $264
⏳ Average Days on Market: 22
📅 Median Days on Market: 7
🔻 Price Decreased: 9%
🔺 Price Increased: 3%
♻️ Relisted: 9%
📦 Inventory: 33
🏠 Median Rent: $2,003
📈 Market Action Index (MAI): 86 (Strong Seller's Market)
Germantown's condo and townhome market remains strongly in seller's territory, with the MAI holding steady at 86. Inventory has increased slightly to 33 units. The median list price has increased to $350,000, with new listings coming on at a significantly higher median of $419,900. Homes are selling quickly, with a median of 7 days on market and an average of 22.
Kensington, MD - Single-Family Homes
📊 Median List Price: $735,000
🆕 Median Price of New Listings: $961,500
🏷️ Price Per Square Foot: $367
⏳ Average Days on Market: 39
📅 Median Days on Market: 7
🔻 Price Decreased: 32%
🔺 Price Increased: 5%
♻️ Relisted: 0%
📦 Inventory: 19
🏠 Median Rent: $3,700
📈 Market Action Index (MAI): 66 (Strong Seller's Market)
Kensington's single-family home market remains firmly in seller's territory, though the MAI has decreased from last month's 69 to 66. Inventory has held steady at 19 homes. The median list price is $735,000, lower than the median price of $961,500 for new listings. Homes are selling very quickly, with a median of just 7 days on market and an average of 39.
Potomac, MD - Single-Family Homes
📊 Median List Price: $2,980,000
🆕 Median Price of New Listings: $1,792,500
🏷️ Price Per Square Foot: $345
⏳ Average Days on Market: 115
📅 Median Days on Market: 56
🔻 Price Decreased: 26%
🔺 Price Increased: 6%
♻️ Relisted: 11%
📦 Inventory: 53
🏠 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, with the MAI increasing slightly from last month's 48 to 50. Inventory has increased slightly to 53 homes. The median list price has increased to $2,980,000, significantly higher than the median price of $1,792,500 for new listings. Homes are taking longer to sell, with a median of 56 days on market and an average of 115. However, there's a significant disparity in Days on Market across price segments:
Top Two Quartiles (Most Expensive): 77-84 days
Bottom Two Quartiles (Least Expensive): 28 days
This split suggests different dynamics at play for high-end properties versus more moderately priced homes in the area.
Rockville, MD - Single-Family Homes
📊 Median List Price: $687,495
🆕 Median Price of New Listings: $829,900
🏷️ Price Per Square Foot: $330
⏳ Average Days on Market: 36
📅 Median Days on Market: 18
🔻 Price Decreased: 29%
🔺 Price Increased: 2%
♻️ Relisted: 7%
📦 Inventory: 42
🏠 Median Rent: $3,300
📈 Market Action Index (MAI): 79 (Strong Seller's Market)
Rockville's single-family home market remains in strong seller's territory, with the MAI increasing slightly from last month's 78 to 79. Inventory has held steady at 42 homes. The median list price is $687,495, lower than the median price of $829,900 for new listings. Homes are selling quickly, with a median of 18 days on market and an average of 36.
Rockville, MD - Condos/Townhomes
📊 Median List Price: $550,000
🆕 Median Price of New Listings: $569,000
🏷️ Price Per Square Foot: $356
⏳ Average Days on Market: 31
📅 Median Days on Market: 28
🔻 Price Decreased: 15%
🔺 Price Increased: 6%
♻️ Relisted: 3%
📦 Inventory: 80
🏠 Median Rent: $2,660
📈 Market Action Index (MAI): 57 (Strong Seller's Market)
Rockville's condo and townhome market remains in strong seller's territory, with the MAI holding steady at 57. Inventory has remained at 80 units. The median list price is $550,000, with new listings arriving at a slightly higher median of $569,000. Homes are selling in a median of 28 days, with an average of 31.
Silver Spring, MD - Single-Family Homes
📊 Median List Price: $720,000
🆕 Median Price of New Listings: $699,000
🏷️ Price Per Square Foot: $322
⏳ Average Days on Market: 41
📅 Median Days on Market: 14
🔻 Price Decreased: 35%
🔺 Price Increased: 3%
♻️ Relisted: 6%
📦 Inventory: 117
🏠 Median Rent: $3,100
📈 Market Action Index (MAI): 66 (Strong Seller's Market)
Silver Spring's single-family home market remains in strong seller's territory, though the MAI has decreased from last month's 69 to 66. Inventory has held steady at 117 homes. The median list price is $720,000, higher than the median price of $699,000 for new listings. Homes are selling quickly, with a median of 14 days on market, though the average is higher at 41.
Silver Spring, MD - Condos/Townhomes
📊 Median List Price: $327,450
🆕 Median Price of New Listings: $347,000
🏷️ Price Per Square Foot: $288
⏳ Average Days on Market: 27
📅 Median Days on Market: 14
🔻 Price Decreased: 23%
🔺 Price Increased: 0%
♻️ Relisted: 6%
📦 Inventory: 80
🏠 Median Rent: $1,974
📈 Market Action Index (MAI): 70 (Strong Seller's Market)
Silver Spring's condo and townhome market remains in strong seller's territory, with the MAI holding steady at 70. Inventory has remained at 80 units. The median list price is $327,450, lower than the median price of $347,000 for new listings. Homes are selling quickly, with a median of 14 days on market and an average of 27.
📈 Key Trends and Takeaways
Strong Seller's Markets Prevail: Most regions, particularly for single-family homes, demonstrate strong seller's markets. High Market Action Indexes (MAI) indicate aggressive buyer competition, with many areas showing a quick turnover in inventory.
Price Fluctuations: While several areas show price decreases in a significant portion of listings, the overall trend suggests stability or slight increases, particularly in new listings. This implies that while some sellers are adjusting prices to attract buyers, the general market value is holding or increasing.
Rapid Sales: Low median days on market across most areas highlight the brisk pace of transactions. Places like Kensington and Gaithersburg (for condos) are particularly notable for rapid sales, suggesting that properties are moving quickly from listing to closing.
Inventory Levels: Inventory levels vary significantly, with some areas like Silver Spring for single-family homes (117) and Rockville for condos/townhomes (80) showing higher inventory, which might offer more options for buyers and a slight ease in competitive pressures. However, other areas like Germantown (19 single-family homes) maintain tight inventory levels, intensifying competition.
Luxury Market Complexity: High-end markets, particularly in areas like Potomac, show a split market dynamic. While the overall average Days on Market is high (115 days), this is heavily influenced by the top price quartiles. The most expensive homes are taking much longer to sell (77-84 days) compared to more moderately priced homes in the same area (28 days). This suggests that while the luxury market faces some challenges, there's still strong demand for relatively more affordable properties in prestigious areas.
Condo/Townhome Strength: Many condo and townhome markets show robust performance, with some areas seeing increases in MAI and quicker sales compared to single-family homes. For instance, Gaithersburg's condo market has an MAI of 85 with a median of just 7 days on market, indicating particularly strong demand in this segment.
Price Reduction Trends: Despite the strong seller's market, price reductions are common across many areas. In Bethesda, 47% of single-family home listings have seen price decreases. This suggests a market where accurate initial pricing is crucial, and sellers may need to be prepared to adjust their expectations.
New Listing Strategies: In several areas, the median price of new listings differs significantly from the overall median list price. For example, in Chevy Chase, new single-family home listings are coming in at $3,349,000, well above the median list price of $2,400,000. This could indicate changing seller strategies or market expectations.
Rental Market Strength: High median rents across the county, particularly in areas like Bethesda ($5,500), Chevy Chase ($6,000), and Potomac ($6,000), suggest strong rental demand alongside the active sales market. This could be influencing investor interest in the area.
Market Action Index Variations: While most areas maintain strong seller's market conditions, there are variations. For instance, Chevy Chase's condo/townhome market shows only a slight seller's advantage with an MAI of 38, contrasting with the strong seller's markets seen in most other areas.
Overall, the Montgomery County real estate market continues to favor sellers in most areas, characterized by quick sales, stable or increasing prices, and strong demand. However, the prevalence of price reductions, varied performance across different segments, and the complexity of the luxury market suggest a nuanced landscape that requires careful navigation.
As we move further into the summer season, buyers may find more opportunities arising in the market. With potential seasonal shifts, sellers may need to adjust their strategies to attract buyers effectively. However, the overall market dynamics still favor sellers in most areas.
If you're considering buying or selling in Montgomery County, now is an opportune time to act. Buyers should work closely with their agents to identify potential opportunities and be prepared to move quickly in this fast-paced market. Sellers should focus on accurate pricing and effective marketing to maximize their property's appeal and value.
Remember, real estate markets can vary significantly even within small geographic areas. Whether you're buying or selling, it's crucial to work with a 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.
As always, I'm here to help you navigate the complexities of the Montgomery County real estate market. Whether you're a buyer looking for your dream home or a seller aiming to maximize your property's value, I have the expertise and resources to guide you through the process. Feel free to reach out to me with any questions or to schedule a consultation.
Until next time, have a fantastic week!
Market Monday