Welcome back to another edition of Market Monday, your weekly dose of Montgomery County real estate insights! I hope everyone had a wonderful Father's Day weekend and found a moment to celebrate the special dads in their lives.
Market Pulse: June 5 - June 12
This week's Market Pulse data reveals that the Montgomery County real estate market maintained its competitive edge. New listings received an average of 2.8 offers, with an impressive 71% of new contracts attracting multiple offers. This high level of competition indicates that buyer demand remained strong leading up to the end of the spring market.
Looking at the breakdown of offer prices, we see that 57% of offers were above list price, 25% were at list price, and 18% were below list price. This distribution suggests that while the majority of buyers were willing to pay a premium to secure their desired properties, there was still some room for negotiation.
In terms of the inspection process, 57% of offers had no inspection contingency, 21% had a pass/fail inspection, 14% had a pre-inspection, and only 8% included a full inspection contingency. This data points to a market where buyers were often waiving inspections or opting for limited inspections to make their offers more competitive.
Last week, I predicted that we would start to see a slowdown this week as both public and private schools conclude their academic year. While the data for this week won't be available until next week's report, I can provide some anecdotal evidence based on my own experiences.
Despite the anticipated slowdown, this week remained fairly busy for me personally. The well-attended open house I mentioned last week successfully went under contract this week, and I also worked with several buyers to navigate the market. However, I did take Sunday off to enjoy Father's Day, although I did field several calls from both buyers and sellers.
In next week's report, we'll be able to evaluate the accuracy of my prediction and assess the market's response to the beginning of the summer season!
Now, let's break down the market trends for each area!
🏡 Bethesda, MD - Single-Family Homes
📊 Median List Price: $2,296,500
🆕 Median Price of New Listings: $1,797,000
🏷️ Price Per Square Foot: $487
⏳ Average Days on Market: 68
📅 Median Days on Market: 46
🔻 Price Decreased: 41%
🔺 Price Increased: 3%
♻️ Relisted: 9%
📦 Inventory: 66
🏠 Median Rent: $5,500
📈 Market Action Index (MAI): 51
Bethesda's market for single-family homes reflects a strong seller's environment with a median list price maintaining a high level amid moderate inventory reductions.
🏢 Bethesda, MD - Condos/Townhomes
📊 Median List Price: $539,900
🆕 Median Price of New Listings: $757,000
🏷️ Price Per Square Foot: $384
⏳ Average Days on Market: 37
📅 Median Days on Market: 35
🔻 Price Decreased: 19%
🔺 Price Increased: 3%
♻️ Relisted: 13%
📦 Inventory: 31
🏠 Median Rent: $2,853
📈 Market Action Index (MAI): 55
Condominiums and townhomes in Bethesda exhibit rapid sales, a strong median list price, and decreasing inventory, indicating robust demand in a seller's market.
🏡 Chevy Chase, MD - Single-Family Homes
📊 Median List Price: $2,099,000
🆕 Median Price of New Listings: $1,785,000
🏷️ Price Per Square Foot: $546
⏳ Average Days on Market: 45
📅 Median Days on Market: 21
🔻 Price Decreased: 21%
🔺 Price Increased: 3%
♻️ Relisted: 10%
📦 Inventory: 29
🏠 Median Rent: $6,000
📈 Market Action Index (MAI): 56
Chevy Chase's market remains tight with premium pricing and swift sales, underpinned by its desirability and limited inventory, maintaining a robust seller's market.
🏢 Chevy Chase, MD - Condos/Townhomes
📊 Median List Price: $780,000
🆕 Median Price of New Listings: $365,000
🏷️ Price Per Square Foot: $539
⏳ Average Days on Market: 34
📅 Median Days on Market: 35
🔻 Price Decreased: 35%
🔺 Price Increased: 0%
♻️ Relisted: 3%
📦 Inventory: 34
🏠 Median Rent: $2,885
📈 Market Action Index (MAI): 37
The condo market in Chevy Chase reflects a cooling phase with significant price decreases, indicating potential buyer advantage in negotiations.
🏡 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: $3,275
📈 Market Action Index (MAI): 68
Gaithersburg shows robust activity with significant price adjustments and a strong seller's market indicated by a high MAI, suggesting continued seller advantage.
🏢 Gaithersburg, MD - Condos/Townhomes
📊 Median List Price: $367,500
🆕 Median Price of New Listings: $375,000
🏷️ Price Per Square Foot: $238
⏳ Average Days on Market: 20
📅 Median Days on Market: 14
🔻 Price Decreased: 30%
🔺 Price Increased: 0%
♻️ Relisted: 0%
📦 Inventory: 30
🏠 Median Rent: $2,065
📈 Market Action Index (MAI): 86
Gaithersburg condos and townhomes show a very strong seller's market with rapid sales, limited inventory, and a very high MAI, indicating substantial buyer competition.
🏡 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
Germantown's single-family homes market is characterized by a quick sales pace and rising new listing prices, reflecting an active market with strong demand.
🏢 Germantown, MD - Condos/Townhomes
📊 Median List Price: $334,500
🆕 Median Price of New Listings: $337,500
🏷️ Price Per Square Foot: $259
⏳ Average Days on Market: 26
📅 Median Days on Market: 14
🔻 Price Decreased: 4%
🔺 Price Increased: 7%
♻️ Relisted: 11%
📦 Inventory: 28
🏠 Median Rent: $2,010
📈 Market Action Index (MAI): 89
Condos and townhomes in Germantown exhibit a highly competitive market with low days on market and an increasing rate of price increases, pointing to a strong seller's advantage.
🏡 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
Kensington’s market for single-family homes shows a significant seller’s advantage, characterized by quick sales and a fairly stable price trend, despite a significant proportion of listings experiencing price decreases.
🏡 Potomac, MD - Single-Family Homes
📊 Median List Price: $2,937,500
🆕 Median Price of New Listings: $2,195,000
🏷️ Price Per Square Foot: $367
⏳ Average Days on Market: 116
📅 Median Days on Market: 56
🔻 Price Decreased: 29%
🔺 Price Increased: 6%
♻️ Relisted: 12%
📦 Inventory: 52
🏠 Median Rent: $6,000
📈 Market Action Index (MAI): 51
Potomac’s market is experiencing a slowdown with an extended average days on market and a high median list price, indicating a market where sellers hold leverage but must be patient.
🏡 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
Rockville’s single-family homes market displays robust demand with relatively quick sales cycles and a strong MAI, indicative of a favorable seller's market environment.
🏢 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: $2,656
📈 Market Action Index (MAI): 57
Condos and townhomes in Rockville are maintaining strong prices and reasonable sales pace, supported by a decent amount of inventory and a consistently strong market action index.
🏡 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
Silver Spring’s market for single-family homes is active with a significant number of new listings entering the market, suggesting a vibrant market dynamic with steady demand.
🏢 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
The condo market in Silver Spring is characterized by relatively fast sales and a stable market action index, reflecting consistent buyer interest and a strong seller’s market.
📈 Key Trends and Takeaways
Across the various markets:
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 Silver Spring 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 Rockville and Silver Spring for condos/townhomes showing higher inventory, which might offer more options for buyers and a slight ease in competitive pressures.
Rental Insights: Median rent figures across these areas suggest a robust rental market, aligning with the strong demand seen in sales markets. Higher rental prices in regions like Potomac and Kensington reflect the premium nature of these locales.
Market Stasis and Cooling Indicators: Some areas like Potomac show signs of a market plateau, with longer average days on market and high list prices, which could suggest a future shift towards a more balanced market or buyer’s market if trends continue.
Overall, the current data reflects a predominantly strong seller's market across the board with rapid sales, steady or increasing prices, and robust rental markets. Buyers should be prepared for competition, while sellers might find it an opportune time to list, given the fast-moving nature of most markets and the premium on new listings.
As we progress into the summer season, buyers can expect to see more opportunities arise in the market. With the typical seasonal slowdown, sellers may need to adjust their strategies and redouble their marketing efforts to attract potential buyers. However, the overall market dynamics still favor sellers, with strong demand and competitive conditions persisting across most areas.
If you're considering buying or selling a property in Montgomery County, now is the time to take action. Buyers, work with your agent to identify potential opportunities and be prepared to act quickly when the right property comes along. Sellers, collaborate with your agent to develop a compelling marketing plan that showcases your property's unique features and attracts serious buyers.
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