Welcome back to another edition of Market Monday, your weekly dose of Montgomery County real estate insights! As we approach the 4th of July, I'd like to wish everyone a happy and safe Independence Day celebration.
While I have a few deals in progress on both the buyer and seller sides, I'll refrain from sharing specific details due to the current stages of negotiations. However, I can say that I experienced a busier week than anticipated, which aligns with the slight uptick we're seeing in the data.
Market Pulse: June 19 - June 26
This week's Market Pulse from RLAH Real Estate data reveals some interesting shifts in the real estate market:
New listings received an average of 2.3 offers, up from 2.1 last week but still down from 2.8 two weeks ago.
60% of new contracts attracted multiple offers, a further decrease from 68% last week.
These numbers point to a market that's becoming more segmented, with intense competition for some properties while others may be seeing less interest.
Looking at the breakdown of offer prices:
67% of offers were above list price (up significantly from 58% last week)
20% were at list price (down from 31% last week)
13% were below list price (up slightly from 11% last week)
This distribution shows a marked increase in above-list offers, suggesting that while fewer properties are receiving multiple offers, those that do are seeing more aggressive bidding.
In terms of the inspection process, we're seeing a reversal of last week's trend:
60% of offers had no inspection contingency (up sharply from 36% last week)
20% had a pass/fail inspection (up from 11% last week)
7% had a pre-inspection (down from 21% last week)
13% included a full inspection contingency (down from 32% last week)
This shift back towards waived inspections suggests that buyers are feeling pressure to make competitive offers on desirable properties, potentially at the expense of due diligence.
These changes indicate a market that's becoming more nuanced as we progress through the summer season. While overall we're seeing fewer properties receive multiple offers, those that do are facing intense competition with higher bids and waived contingencies. This aligns with my experience of a busier-than-expected week, likely driven by highly competitive situations on desirable listings.
As we dive into the detailed market trends for each area, keep in mind this evolving dynamic. The summer market is creating a more segmented landscape, where pricing, condition, and location are increasingly critical factors in determining a property's competitiveness.
Now, let's break down the market trends for each area!
🏡 Bethesda, MD - Single-Family Homes
📊 Median List Price: $2,150,000
🆕 Median Price of New Listings: $1,674,700
🏷️ Price Per Square Foot: $485
⏳ Average Days on Market: 66
📅 Median Days on Market: 42
🔻 Price Decreased: 42%
🔺 Price Increased: 3%
♻️ Relisted: 14%
📦 Inventory: 69
🏠 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 49 to 48. Inventory has increased to 69 homes. The median list price has dropped to $2,150,000, with new listings coming on at a lower median of $1,674,700. Homes are selling in a median of 42 days, though the average is higher at 66 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: $499,000
🏷️ Price Per Square Foot: $462
⏳ Average Days on Market: 34
📅 Median Days on Market: 14
🔻 Price Decreased: 14%
🔺 Price Increased: 0%
♻️ Relisted: 9%
📦 Inventory: 22
🏠 Median Rent: $2,870
📈 Market Action Index (MAI): 63 (Strong Seller's Market)
Bethesda's condo and townhome market has strengthened significantly, with the MAI increasing from last month's 54 to 63. Inventory has decreased to 22 units. The median list price has jumped to $723,500, though new listings are coming on at a lower median of $499,000. Homes are selling quickly, with a median of 14 days on market and an average of 34.
🏡 Chevy Chase, MD - Single-Family Homes
📊 Median List Price: $2,695,000
🆕 Median Price of New Listings: $1,650,000
🏷️ Price Per Square Foot: $607
⏳ Average Days on Market: 55
📅 Median Days on Market: 21
🔻 Price Decreased: 27%
🔺 Price Increased: 4%
♻️ Relisted: 15%
📦 Inventory: 26
🏠 Median Rent: $5,900
📈 Market Action Index (MAI): 52 (Strong Seller's Market)
Chevy Chase's single-family home market remains strong, though the MAI has decreased from last month's 56 to 52. Inventory has decreased slightly to 26 homes. The median list price has increased to $2,695,000, though new listings are coming on at a lower median of $1,650,000. Homes are selling quickly, with a median of 21 days on market, though the average is higher at 55 days.
🏢 Chevy Chase, MD - Condos/Townhomes
📊 Median List Price: $725,000
🆕 Median Price of New Listings: $550,000
🏷️ Price Per Square Foot: $542
⏳ Average Days on Market: 44
📅 Median Days on Market: 49
🔻 Price Decreased: 27%
🔺 Price Increased: 0%
♻️ Relisted: 8%
📦 Inventory: 37
🏠 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 37 to 38, though still indicating only a slight seller's advantage. Inventory has increased to 37 units. The median list price is $725,000, with new listings coming on at a lower median of $550,000. 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: $899,000
🏷️ Price Per Square Foot: $289
⏳ Average Days on Market: 71
📅 Median Days on Market: 21
🔻 Price Decreased: 29%
🔺 Price Increased: 5%
♻️ Relisted: 7%
📦 Inventory: 42
🏠 Median Rent: $3,150
📈 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 decreased to 42 homes. The median list price is $899,000, matching the median price of new listings. Homes are selling in a median of 21 days, though the average is significantly higher at 71 days.
🏢 Gaithersburg, MD - Condos/Townhomes
📊 Median List Price: $375,000
🆕 Median Price of New Listings: $396,250
🏷️ Price Per Square Foot: $264
⏳ Average Days on Market: 19
📅 Median Days on Market: 7
🔻 Price Decreased: 17%
🔺 Price Increased: 2%
♻️ Relisted: 2%
📦 Inventory: 41
🏠 Median Rent: $2,063
📈 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 decreased to 41 units. The median list price is $375,000, with new listings arriving at a slightly higher median of $396,250. 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: $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: $2,625
📈 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 increased to 31 homes. The median list price has risen to $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: $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 remained at 33 units. The median list price is $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: $1,142,500
🆕 Median Price of New Listings: $850,000
🏷️ Price Per Square Foot: $398
⏳ Average Days on Market: 39
📅 Median Days on Market: 7
🔻 Price Decreased: 20%
🔺 Price Increased: 5%
♻️ Relisted: 0%
📦 Inventory: 20
🏠 Median Rent: $4,200
📈 Market Action Index (MAI): 69 (Strong Seller's Market)
Kensington's single-family home market remains firmly in seller's territory, with the MAI increasing from last month's 68 to 69. Inventory has increased slightly to 20 homes. The median list price has risen significantly to $1,142,500, though new listings are coming on at a lower median of $850,000. 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: $2,937,500
🆕 Median Price of New Listings: $1,724,950
🏷️ Price Per Square Foot: $357
⏳ Average Days on Market: 129
📅 Median Days on Market: 67
🔻 Price Decreased: 27%
🔺 Price Increased: 4%
♻️ Relisted: 13%
📦 Inventory: 48
🏠 Median Rent: $6,000
📈 Market Action Index (MAI): 51 (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 50 to 51. Inventory has decreased to 48 homes. The median list price remains high at $2,937,500, significantly higher than the median price of $1,724,950 for new listings. Homes are taking longer to sell, with a median of 67 days on market and an average of 129 days.
🏡 Rockville, MD - Single-Family Homes
📊 Median List Price: $649,000
🆕 Median Price of New Listings: $649,000
🏷️ Price Per Square Foot: $326
⏳ Average Days on Market: 29
📅 Median Days on Market: 14
🔻 Price Decreased: 15%
🔺 Price Increased: 3%
♻️ Relisted: 5%
📦 Inventory: 40
🏠 Median Rent: $3,300
📈 Market Action Index (MAI): 80 (Strong Seller's Market)
Rockville's single-family home market remains in strong seller's territory, with the MAI increasing from last month's 78 to 80. Inventory has decreased slightly to 40 homes. The median list price has decreased to $649,000, matching the median price of new listings. Homes are selling quickly, with a median of 14 days on market and an average of 29.
🏢 Rockville, MD - Condos/Townhomes
📊 Median List Price: $567,000
🆕 Median Price of New Listings: $614,250
🏷️ Price Per Square Foot: $363
⏳ Average Days on Market: 37
📅 Median Days on Market: 28
🔻 Price Decreased: 16%
🔺 Price Increased: 9%
♻️ Relisted: 4%
📦 Inventory: 76
🏠 Median Rent: $2,690
📈 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 76 units. The median list price has increased to $567,000, with new listings arriving at a higher median of $614,250. Homes are selling in a median of 28 days, with an average of 37.
🏡 Silver Spring, MD - Single-Family Homes
📊 Median List Price: $709,500
🆕 Median Price of New Listings: $650,000
🏷️ Price Per Square Foot: $323
⏳ Average Days on Market: 49
📅 Median Days on Market: 21
🔻 Price Decreased: 44%
🔺 Price Increased: 4%
♻️ Relisted: 7%
📦 Inventory: 108
🏠 Median Rent: $3,100
📈 Market Action Index (MAI): 67 (Strong Seller's Market)
Silver Spring's single-family home market remains in strong seller's territory, though the MAI has decreased slightly from last month's 68 to 67. Inventory has decreased to 108 homes. The median list price has decreased slightly to $709,500, with new listings coming on at a lower median of $650,000. Homes are selling in a median of 21 days, though the average is higher at 49 days.
🏢 Silver Spring, MD - Condos/Townhomes
📊 Median List Price: $321,000
🆕 Median Price of New Listings: $289,000
🏷️ Price Per Square Foot: $274
⏳ Average Days on Market: 28
📅 Median Days on Market: 21
🔻 Price Decreased: 25%
🔺 Price Increased: 0%
♻️ Relisted: 6%
📦 Inventory: 83
🏠 Median Rent: $1,950
📈 Market Action Index (MAI): 69 (Strong Seller's Market)
Silver Spring's condo and townhome market remains in strong seller's territory, with the MAI holding steady at 69. Inventory has increased slightly to 83 units. The median list price has decreased to $321,000, with new listings coming on at an even lower median of $289,000. Homes are selling in a median of 21 days, with an average of 28 days on market.
📈 Key Trends and Takeaways
Strong Seller's Markets Prevail: Most regions, particularly for single-family homes, continue to demonstrate strong seller's markets. High Market Action Indexes (MAI) indicate ongoing buyer competition, with many areas showing quick inventory turnover.
Price Fluctuations: While price decreases are common in many areas, we're seeing a trend towards stability or slight increases, especially in new listings. This suggests that while some sellers are adjusting prices to attract buyers, overall market values are holding steady or increasing.
Rapid Sales Continue: Low median days on market across most areas highlight the brisk pace of transactions. Kensington (7 days for single-family homes) and Gaithersburg (7 days for condos) are particularly notable for rapid sales.
Varied Inventory Levels: Inventory levels differ significantly across areas. Silver Spring (108 single-family homes) and Rockville (76 condos/townhomes) show higher inventory, potentially offering more options for buyers. In contrast, areas like Germantown (31 single-family homes) maintain tighter inventory levels, intensifying competition.
Luxury Market Complexity: High-end markets, especially in areas like Potomac, continue to show a split dynamic. With an average of 129 days on market for single-family homes, the luxury segment faces challenges, but there's still strong demand for more moderately priced properties in prestigious areas.
Condo/Townhome Strength: Many condo and townhome markets show robust performance, often outpacing single-family homes in terms of MAI and days on market. Gaithersburg's condo market, with an MAI of 85 and a median of just 7 days on market, is particularly strong.
Price Reduction Trends: Despite the strong seller's market, price reductions remain common. This suggests a market where accurate initial pricing is crucial, and sellers should be prepared to adjust their expectations if necessary.
New Listing Strategies: In several areas, the median price of new listings differs significantly from the overall median list price, indicating evolving seller strategies and market expectations.
Rental Market Strength: High median rents across the county, particularly in areas like Bethesda ($5,500), Chevy Chase ($5,900), and Potomac ($6,000), suggest strong rental demand alongside the active sales market.
Market Action Index Variations: While most areas maintain strong seller's market conditions, there are variations. Chevy Chase's condo/townhome market, for example, shows only a slight seller's advantage with an MAI of 38.
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 and a safe and happy 4th of July celebration!
Market Monday