Welcome back to another edition of Market Monday, your weekly dose of Montgomery County real estate insights! As predicted last week, competition has roared back following the brief Memorial Day slowdown. Let's dive into the latest data from RLAH @properties to see how the market is shaping up.
🏘️ Market Pulse: Competition Heats Up
This week, new listings received an average of 2.6 offers, a significant jump from last week's 1.63 average during the holiday lull. Moreover, 57% of listings attracted multiple bidders.
The breakdown of offer prices reveals that 52% of offers were above list price, 24% were at list, and 24% were below. This suggests that while competition is fierce, there is still some variability in offer prices.
My own experiences align with these trends. The open house I hosted on a new listing was very well attended. We ratified two deals: one on the listing side, where we rejected an offer last week only to accept a significantly higher offer this weekend, and another on the buyer side.
Looking ahead, I anticipate a general slowdown in the market through Labor Day as summer travel picks up. This slowdown could create opportunities for buyers to find better deals with less competition. However, sellers will need to double down on marketing efforts to attract attention to their listings during this slower period.
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 (Strong Seller's Market)
Bethesda's 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 66 homes. The median list price stands at $2,296,500, with new listings coming on the market at a median price of $1,797,000. Homes are selling in a median of 46 days, indicating continued buyer interest despite a rise in average days on market to 68. Price adjustments are common, with 41% of listings seeing price reductions and only 3% experiencing increases.
The market has achieved a relative stasis point in terms of sales to inventory, but low inventory levels are keeping it firmly in seller's market territory. If the market heats up, expect prices to resume an upward climb. Keep an eye on the MAI for indications of future price movements.
🏢 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: $2,906
📈 Market Action Index (MAI): 55 (Strong Seller's Market)
Bethesda's condo and townhome market remains strong, with the MAI hovering around last month's level of 55, indicating a strong seller's market. Inventory has decreased to 31 units. The median list price is $539,900, with new listings arriving at a significantly higher median price of $757,000. Homes are selling in a median of 35 days. Price decreases are outpacing increases, with 19% of listings seeing reductions and only 3% experiencing hikes.
Home sales continue to outpace supply, putting upward pressure on prices. If this trend persists, expect prices to climb in the near future. However, the premium of new listing prices over the overall median list price suggests some potential for price appreciation at the higher end of the 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 (Strong Seller's Market)
Chevy Chase's single-family home market is in strong seller's territory, with the MAI increasing from last month's 55 to 56. Inventory has risen slightly to 29 homes. The median list price is $2,099,000, with new listings coming on at a median of $1,785,000. Homes are selling quickly, with a median of just 21 days on market, although the average stands higher at 45 days. Price decreases outpace increases 21% to 3%.
With low inventory and fast sales, the market favors sellers. However, watch for changes in the MAI, as persistent declines could signal a shift. For now, if the current sales trend continues, prices could resume climbing.
🏢 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: $2,903
📈 Market Action Index (MAI): 37 (Slight Seller's Advantage)
The condo and townhome market in Chevy Chase has cooled slightly, with the MAI decreasing from last month's 40 to 37, indicating a shift from a seller's market to one with only a slight seller's advantage. Inventory has dipped to 34 units. The median list price is $780,000, significantly higher than the median price of $365,000 for new listings. Homes are selling in a median of 35 days. Price reductions are common, with 35% of listings seeing decreases and none experiencing increases.
The market has been consistently cooling in recent weeks. Though still in seller's territory, prices have not yet begun to drop. If demand remains slack, prices could start to decline, especially if the MAI falls to the buyer's zone. Monitor the MAI closely for indications of persistent downward trends that could pressure prices.
🏡 Gaithersburg, MD - Single-Family Homes
📊 Median List Price: $950,000
🆕 Median Price of New Listings: $849,999
🏷️ Price Per Square Foot: $286
⏳ Average Days on Market: 71
📅 Median Days on Market: 42
🔻 Price Decreased: 35%
🔺 Price Increased: 5%
♻️ Relisted: 5%
📦 Inventory: 43
🏠 Median Rent: $3,350
📈 Market Action Index (MAI): 69 (Strong Seller's Market)
Gaithersburg's single-family home market remains strong, with the MAI increasing slightly from last month's 68 to 69, indicating a robust seller's market. Inventory has decreased to 43 homes. The median list price is $950,000, with new listings arriving at a median of $849,999. Homes are selling in a median of 42 days, though the average is higher at 71 days. Price cuts are common, with 35% of listings seeing reductions, while only 5% have increased.
The market has achieved relative stasis in terms of sales to inventory, but low supply is keeping it firmly in seller's territory. If the market heats up further, prices are likely to resume an upward climb. Watch the MAI for signs of this shift.
🏢 Gaithersburg, MD - Condos/Townhomes
📊 Median List Price: $415,000
🆕 Median Price of New Listings: $415,000
🏷️ Price Per Square Foot: $233
⏳ Average Days on Market: 15
📅 Median Days on Market: 7
🔻 Price Decreased: 30%
🔺 Price Increased: 3%
♻️ Relisted: 0%
📦 Inventory: 33
🏠 Median Rent: $2,100
📈 Market Action Index (MAI): 81 (Strong Seller's Market)
Gaithersburg's condo and townhome market remains very competitive, though the MAI has decreased slightly from last month's 82 to 81. Inventory has grown to 33 units. The median list price and median price of new listings are identical at $415,000. Homes are selling exceptionally quickly, with a median of just 7 days on market and an average of 15.
The market has been cooling, with prices plateauing recently. However, it remains firmly in seller's market territory. If the MAI starts climbing again, expect prices to follow suit. Alternatively, consistent MAI drops, especially into the buyer's zone, could put downward pressure on prices.
🏡 Germantown, MD - Single-Family Homes
📊 Median List Price: $724,950
🆕 Median Price of New Listings: $765,000
🏷️ Price Per Square Foot: $242
⏳ Average Days on Market: 23
📅 Median Days on Market: 14
🔻 Price Decreased: 38%
🔺 Price Increased: 0%
♻️ Relisted: 0%
📦 Inventory: 16
🏠 Median Rent: $2,550
📈 Market Action Index (MAI): 81 (Strong Seller's Market)
Germantown's single-family home market remains firmly in seller's territory, with the MAI steady at last month's level of 81. Inventory is low at just 16 homes. The median list price is $724,950, with new listings coming on at a higher median of $765,000. Homes are selling quickly, with a median of 14 days on market and an average of 23. Price reductions are common at 38%, with no listings seeing increases.
The market has cooled recently, with prices plateauing. However, it remains a strong seller's market. If the MAI starts climbing again, expect prices to resume rising. Alternatively, persistent MAI drops, especially into buyer's territory, could pressure prices downward.
🏢 Germantown, MD - Condos/Townhomes
📊 Median List Price: $347,000
🆕 Median Price of New Listings: $332,000
🏷️ Price Per Square Foot: $268
⏳ Average Days on Market: 21
📅 Median Days on Market: 11
🔻 Price Decreased: 14%
🔺 Price Increased: 7%
♻️ Relisted: 7%
📦 Inventory: 28
🏠 Median Rent: $2,018
📈 Market Action Index (MAI): 88 (Strong Seller's Market)
Germantown's condo and townhome market remains strongly in seller's territory, though the MAI has decreased slightly from last month's 89 to 88. Inventory has risen to 28 units. The median list price is $347,000, higher than the median price of $332,000 for new listings. Homes are selling quickly, with a median of 11 days on market and an average of 21. Price decreases are outpacing increases 14% to 7%.
The market has reached a relative stasis point in terms of sales to inventory, but low supply is keeping it firmly in seller's market territory. If it heats up further, expect prices to resume climbing. Watch the MAI for signs of this shift.
🏡 Kensington, MD - Single-Family Homes
📊 Median List Price: $749,000
🆕 Median Price of New Listings: $700,000
🏷️ Price Per Square Foot: $407
⏳ Average Days on Market: 28
📅 Median Days on Market: 7
🔻 Price Decreased: 24%
🔺 Price Increased: 0%
♻️ Relisted: 0%
📦 Inventory: 17
🏠 Median Rent: $3,700
📈 Market Action Index (MAI): 68 (Strong Seller's Market)
Kensington's single-family home market is firmly in seller's territory, with the MAI increasing from last month's 66 to 68. Inventory has grown slightly to 17 homes. The median list price is $749,000, higher than the median price of $700,000 for new listings. Homes are selling very quickly, with a median of just 7 days on market and an average of 28.
Despite recent price weakness, low inventory and fast sales indicate a strong seller's market. Sales have been outpacing new listings for several weeks. As the market is already in seller's territory, expect prices to stabilize soon. If the sales trend persists, prices could potentially rise from there.
🏡 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 (Strong Seller's Market)
Potomac's luxury single-family home market remains in strong seller's territory, with the MAI increasing from last month's 48 to 51. Inventory has risen to 52 homes. The median list price is a hefty $2,937,500, with new listings arriving at a median of $2,195,000. Homes are taking longer to sell, with a median of 56 days on market and an average of 116. Price reductions are occurring on 29% of listings, with just 6% seeing increases.
Despite recent price declines, low inventory is indicative of a strong seller's market. With sales outpacing new supply for several weeks, expect prices to level off soon. If the sales trend continues, prices could potentially climb from there.
🏡 Rockville, MD - Single-Family Homes
📊 Median List Price: $692,000
🆕 Median Price of New Listings: $730,000
🏷️ Price Per Square Foot: $357
⏳ Average Days on Market: 33
📅 Median Days on Market: 14
🔻 Price Decreased: 21%
🔺 Price Increased: 2%
♻️ Relisted: 7%
📦 Inventory: 42
🏠 Median Rent: $3,225
📈 Market Action Index (MAI): 78 (Strong Seller's Market)
Rockville's single-family home market remains in strong seller's territory, with the MAI steady at last month's level of 78. Inventory has increased to 42 homes. The median list price is $692,000, lower than the median price of $730,000 for new listings. Homes are selling quickly, with a median of 14 days on market and an average of 33. Price decreases are outpacing increases 21% to 2%.
The market has cooled recently, with prices plateauing. However, it remains firmly in seller's market territory. If the MAI starts climbing again, expect prices to follow suit. Alternatively, consistent MAI drops, especially into buyer's territory, could put downward pressure on prices.
🏢 Rockville, MD - Condos/Townhomes
📊 Median List Price: $457,900
🆕 Median Price of New Listings: $424,900
🏷️ Price Per Square Foot: $367
⏳ Average Days on Market: 30
📅 Median Days on Market: 21
🔻 Price Decreased: 15%
🔺 Price Increased: 8%
♻️ Relisted: 3%
📦 Inventory: 72
🏠 Median Rent: $2,640
📈 Market Action Index (MAI): 56 (Strong Seller's Market)
Rockville's condo and townhome market remains in strong seller's territory, though the MAI has decreased from last month's 58 to 56. Inventory has grown to 72 units. The median list price is $457,900, higher than the median price of $424,900 for new listings. Homes are selling in a median of 21 days, with an average of 30. Price reductions are outpacing increases 15% to 8%.
The market has been cooling in recent weeks as inventory grows and demand lessens. While still in seller's market territory, watch for persistent downward trends, especially if the MAI falls into buyer's market range, as this could pressure prices downward. There is some evidence of prices already moving lower.
🏡 Silver Spring, MD - Single-Family Homes
📊 Median List Price: $722,499
🆕 Median Price of New Listings: $650,000
🏷️ Price Per Square Foot: $325
⏳ Average Days on Market: 48
📅 Median Days on Market: 14
🔻 Price Decreased: 35%
🔺 Price Increased: 3%
♻️ Relisted: 4%
📦 Inventory: 100
🏠 Median Rent: $3,200
📈 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 70 to 67. Inventory has climbed to 100 homes. The median list price is $722,499, higher than the median price of $650,000 for new listings. Homes are selling quickly, with a median of 14 days on market, though the average is higher at 48. Price decreases are common, with 35% of listings seeing reductions and only 3% experiencing increases.
The market has cooled recently, with prices plateauing. However, it remains firmly in seller's market territory. If the MAI resumes climbing, expect prices to follow suit. Alternatively, consistent MAI drops, especially into buyer's territory, could put downward pressure on prices.
🏢 Silver Spring, MD - Condos/Townhomes
📊 Median List Price: $324,999
🆕 Median Price of New Listings: $365,000
🏷️ Price Per Square Foot: $289
⏳ Average Days on Market: 29
📅 Median Days on Market: 14
🔻 Price Decreased: 21%
🔺 Price Increased: 0%
♻️ Relisted: 7%
📦 Inventory: 86
🏠 Median Rent: $1,979
📈 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 steady at last month's level of 69. Inventory has increased to 86 units. The median list price is $324,999, lower than the median price of $365,000 for new listings. Homes are selling quickly, with a median of 14 days on market and an average of 29. Price decreases are outpacing increases 21% to 0%.
The market has cooled recently, with prices plateauing. However, it remains firmly in seller's market territory. If the MAI resumes climbing, expect prices to follow suit. Alternatively, consistent MAI drops, especially into buyer's territory, could put downward pressure on prices.
📈 Key Trends and Takeaways
Seller's Market Dominance: The majority of markets in Montgomery County remain solidly in seller's market territory, as indicated by high Market Action Index (MAI) values. This suggests that demand is outpacing supply, giving sellers an advantage in most areas.
Inventory Levels Vary: While many markets are grappling with low inventory, some areas have seen a slight uptick in available homes. However, overall supply remains limited, contributing to the competitive nature of the market.
Fast-Paced Sales: Homes are selling quickly across the board, with median days on market often below 30. This trend is particularly pronounced in the condo and townhome segment, where properties are being snapped up at a rapid pace.
Price Reductions Prevalent: Despite the seller's market conditions, price reductions are more common than price increases in many areas. This could signal that sellers are adjusting their expectations to align with market realities, or that the market is reaching a point of price stabilization.
Luxury Market Dynamics: Potomac's high-end single-family home market stands out with its lofty median list price, but it's also experiencing longer days on market and a higher proportion of price reductions compared to other markets. This suggests that even in a seller's market, luxury properties may face unique challenges.
Potential for Market Shifts: While most markets remain in seller's favor, some areas—particularly in the condo and townhome segment in some areas—have experienced MAI declines in recent weeks. Though still in seller's market territory, these trends bear watching, as sustained downward movement could indicate a shift towards more balanced market conditions.
Strong Rental Demand: High median rents across the county, especially in popular locales like Bethesda and Chevy Chase, reflect the robust demand for housing in the area. This demand is likely spilling over into the for-sale market, further fueling competition.
Overall, Montgomery County's housing market continues to favor sellers, with high demand, quick sales, and generally low inventory. However, the prevalence of price reductions and the potential for market shifts in some sectors suggest that the market is not without its challenges. As such, both buyers and sellers should stay attuned to local market conditions and be prepared to adapt their strategies accordingly.
Market Monday