Market Monday - Memorial Day Edition

Real Estate, Real Stories with Corey Feldman Podcast

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Market Monday - Memorial Day Edition

May 26, 2025

Corey Feldman

May 26, 2025

Good morning, and Happy Memorial Day! I hope everyone is enjoying this special day of remembrance and gratitude for those who served our country. As we honor their sacrifice and celebrate with family and friends, this week's data reveals a market showing signs of stabilization amid the seasonal patterns we predicted following last week's competitive surge.

Market Dynamics Continue Evolution Following Memorial Day Weekend

Last week's brokerage data from RLAH @properties shows significant buyer competition emerging as we headed into Memorial Day weekend. The most significant development? Above-list sales more than doubled from 19% to 39% as documented in our Weekend Market Pulse, while average offers per property jumped from 1.4 to 1.9, confirming the pent-up buyer demand we've been tracking.

Beyond the bidding war surge, homes in premium markets like Chevy Chase are selling faster (21 days vs 42 days), and fewer sellers are cutting prices across multiple communities.

However, the underlying trends toward increased buyer selectivity persist. Market segmentation continues to intensify, with luxury properties facing extended marketing times while appropriately priced entry-level homes maintained strong performance across most neighborhoods heading into this Memorial Day weekend.

Measured Changes Across Montgomery County Communities

The Montgomery County real estate market exhibits measured changes this week, with several communities showing stabilization in the lead-up to Memorial Day. While challenges persist in the luxury segments, the overall trend suggests markets were finding better balance as buyers and sellers adjusted expectations during the week leading up to this Memorial Day weekend.

The performance gap between market segments remains pronounced, though slightly improved from recent weeks. Ultra-luxury properties continue requiring extended marketing periods, while well-priced entry-level homes maintain strong sales rates, creating distinctly different seller experiences within the same communities.

Montgomery County Market Breakdown by Community and Property Type

🏡 Bethesda, MD – Single-Family Homes

Median List Price: $2,095,000 (⬇️ from $2,149,000)
Median Price of New Listings: $1,810,000 (⬆️ from $1,280,000)
Price Per Square Foot: $450 (⬇️ from $452)
Average Days on Market: 69 (⬇️ from 80)
Median Days on Market: 35 (⬇️ from 49)
Price Decreased: 47% (⬇️ from 49%)
Price Increased: 3% (⬆️ from 2%)
Relisted: 16% (↔️ from 16%)
Inventory: 137 (⬆️ from 133)
Median Rent: $5,500 (⬆️ from $5,100)
MAI: 41 (⬆️ from 40) (📊 Slight Seller's Advantage)

Market Analysis: Bethesda shows encouraging signs with homes selling faster, taking 35 days instead of 49 days to sell, and average time dropping from 80 to 69 days. The significant increase in new listing prices ($1.81M vs $1.28M) suggests renewed seller confidence, while fewer sellers are cutting prices (47% vs 49%). While MAI holds essentially flat at 41, homes are moving faster, indicating increased buyer interest.

🏢 Bethesda, MD – Condos/Townhomes

Median List Price: $428,000 (⬇️ from $434,949)
Median Price of New Listings: $439,000 (⬆️ from $349,900)
Price Per Square Foot: $346 (⬇️ from $411)
Average Days on Market: 51 (⬇️ from 61)
Median Days on Market: 28 (⬇️ from 32)
Price Decreased: 35% (⬇️ from 45%)
Price Increased: 2% (⬆️ from 0%)
Relisted: 6% (⬇️ from 7%)
Inventory: 49 (⬆️ from 42)
Median Rent: $3,030 (⬆️ from $3,020)
MAI: 43 (⬇️ from 46) (📊 Slight Seller's Advantage)

Market Analysis: The condo market shows mixed signals with MAI cooling from 46 to 43, yet improved sales pace suggests buyer engagement. New listings entering at higher prices ($439K vs $350K) indicates seller confidence, while price reduction activity declines significantly to 35%. Marketing time improvements across all segments demonstrate continued demand despite moderating market conditions.

🏡 Chevy Chase, MD – Single-Family Homes

Median List Price: $1,999,000 (⬇️ from $2,200,000)
Median Price of New Listings: $1,335,000 (⬇️ from $1,932,500)
Price Per Square Foot: $542 (⬇️ from $546)
Average Days on Market: 72 (⬇️ from 101)
Median Days on Market: 21 (⬇️ from 42)
Price Decreased: 39% (⬇️ from 42%)
Price Increased: 0% (↔️ from 0%)
Relisted: 20% (⬇️ from 24%)
Inventory: 56 (⬆️ from 45)
Median Rent: $5,498 (⬆️ from $5,248)
MAI: 37 (↔️ from 37) (📊 Slight Seller's Advantage)

Market Analysis: Chevy Chase demonstrates significant improvement with homes selling much faster, with median time dropping from 42 to 21 days and average time declining from 101 to 72 days. While MAI remains stable at 37, the improved speed suggests increased buyer activity. Price reduction activity moderates to 39%, indicating market adjustment may be nearing completion in this premium segment.

🏢 Chevy Chase, MD – Condos/Townhomes

Median List Price: $482,500 (↔️ from $482,500)
Median Price of New Listings: $445,000 (⬇️ from $735,000)
Price Per Square Foot: $409 (⬇️ from $420)
Average Days on Market: 72 (⬇️ from 73)
Median Days on Market: 42 (↔️ from 42)
Price Decreased: 29% (⬇️ from 31%)
Price Increased: 0% (↔️ from 0%)
Relisted: 11% (⬆️ from 10%)
Inventory: 76 (⬆️ from 70)
Median Rent: $2,650 (⬆️ from $2,643)
MAI: 33 (↔️ from 33) (📊 Slight Seller's Advantage)

Market Analysis: Maintains stability with MAI holding at 33 and median pricing remaining flat. The decline in price reduction activity to 29% suggests market equilibrium, while consistent performance metrics indicate steady buyer engagement across price segments.

🏡 Gaithersburg, MD – Single-Family Homes

Median List Price: $879,000 (⬇️ from $924,950)
Median Price of New Listings: $765,000 (⬇️ from $850,000)
Price Per Square Foot: $260 (⬇️ from $262)
Average Days on Market: 52 (⬇️ from 56)
Median Days on Market: 21 (⬇️ from 28)
Price Decreased: 39% (⬇️ from 40%)
Price Increased: 3% (↔️ from 3%)
Relisted: 10% (⬇️ from 11%)
Inventory: 111 (⬆️ from 93)
Median Rent: $3,000 (⬆️ from $2,950)
MAI: 45 (↔️ from 45) (📈 Strong Seller's Market)

Market Analysis: Gaithersburg maintains solid fundamentals with MAI stable at 45 and homes selling faster. Median time improving from 28 to 21 days demonstrates strong buyer engagement, while price reduction activity moderates slightly. The market continues balanced performance across segments with steady sales rates.

🏢 Gaithersburg, MD – Condos/Townhomes

Median List Price: $429,950 (⬇️ from $450,000)
Median Price of New Listings: $372,500 (⬇️ from $478,900)
Price Per Square Foot: $274 (⬇️ from $279)
Average Days on Market: 39 (⬇️ from 42)
Median Days on Market: 14 (⬇️ from 21)
Price Decreased: 32% (⬇️ from 36%)
Price Increased: 1% (⬇️ from 3%)
Relisted: 8% (↔️ from 8%)
Inventory: 84 (⬆️ from 75)
Median Rent: $2,215 (↔️ from $2,250)
MAI: 54 (↔️ from 54) (📈 Strong Seller's Market)

Market Analysis: Strong performance continues with MAI holding at 54 and notable improvements in how quickly homes sell. Median time declining from 21 to 14 days indicates robust buyer demand, while price reduction activity moderates to 32%. Consistent performance across price segments demonstrates market stability.

🏡 Germantown, MD – Single-Family Homes

Median List Price: $847,450 (⬇️ from $949,900)
Median Price of New Listings: $625,000 (⬇️ from $845,000)
Price Per Square Foot: $262 (⬆️ from $251)
Average Days on Market: 53 (⬇️ from 55)
Median Days on Market: 28 (↔️ from 28)
Price Decreased: 46% (⬆️ from 43%)
Price Increased: 0% (↔️ from 0%)
Relisted: 8% (⬇️ from 13%)
Inventory: 24 (⬆️ from 23)
Median Rent: $2,595 (⬇️ from $2,599)
MAI: 62 (⬆️ from 61) (📈 Strong Seller's Market)

Market Analysis: Germantown strengthens with MAI improving from 61 to 62 despite increased price reduction activity. The market maintains excellent fundamentals with strong buyer demand across segments. Inventory management remains tight, supporting continued seller-favorable conditions.

🏢 Germantown, MD – Condos/Townhomes

Median List Price: $326,700 (⬇️ from $355,000)
Median Price of New Listings: $322,499 (⬇️ from $411,500)
Price Per Square Foot: $263 (⬇️ from $267)
Average Days on Market: 39 (⬆️ from 34)
Median Days on Market: 14 (↔️ from 14)
Price Decreased: 38% (⬆️ from 30%)
Price Increased: 4% (⬆️ from 3%)
Relisted: 9% (⬆️ from 8%)
Inventory: 69 (⬆️ from 61)
Median Rent: $1,963 (⬆️ from $1,950)
MAI: 68 (⬇️ from 72) (📈 Strong Seller's Market)

Market Analysis: Despite MAI cooling from 72 to 68, this remains the county's strongest condo market. Sales pace holds steady with median time at 14 days, though increased inventory and price reduction activity suggest some moderation from peak conditions.

🏡 Kensington, MD – Single-Family Homes

Median List Price: $1,087,500 (⬇️ from $1,200,000)
Median Price of New Listings: $739,000 (⬇️ from $1,237,000)
Price Per Square Foot: $405 (⬆️ from $371)
Average Days on Market: 46 (⬇️ from 53)
Median Days on Market: 21 (↔️ from 21)
Price Decreased: 35% (⬇️ from 52%)
Price Increased: 3% (⬆️ from 0%)
Relisted: 15% (↔️ from 15%)
Inventory: 34 (⬆️ from 27)
Median Rent: $4,200 (⬆️ from $4,100)
MAI: 53 (⬆️ from 52) (📈 Strong Seller's Market)

Market Analysis: Kensington shows meaningful improvement with a notable reduction in price-cutting activity from 52% to 35%, the most significant decline in the county. Marketing time improvements and MAI edging up to 53 suggest market stabilization, though the changes remain modest. The substantial decrease in sellers reducing prices indicates this historically strong community may be finding better price equilibrium.

🏡 Poolesville, MD – Single-Family Homes

Median List Price: $1,113,500 (⬆️ from $1,079,000)
Median Price of New Listings: $512,000 (⬇️ from $775,000)
Price Per Square Foot: $289 (↔️ from $289)
Average Days on Market: 106 (⬇️ from 113)
Median Days on Market: 25 (⬆️ from 21)
Price Decreased: 30% (⬆️ from 0%)
Price Increased: 10% (⬇️ from 11%)
Relisted: 0% (↔️ from 0%)
Inventory: 10 (⬆️ from 9)
Median Rent: $2,400 (↔️ from $2,400)
MAI: 44 (⬆️ from 43) (📊 Slight Seller's Advantage)

Market Analysis: This micro-market shows modest improvement with MAI rising from 43 to 44, though high variation persists due to small inventory base. The emergence of price reduction activity (30%) indicates market adjustment, while ultra-luxury properties continue requiring extended marketing periods.

🏡 Potomac, MD – Single-Family Homes

Median List Price: $1,937,000 (↔️ from $1,937,000)
Median Price of New Listings: $1,724,500 (⬇️ from $1,760,000)
Price Per Square Foot: $362 (↔️ from $362)
Average Days on Market: 65 (↔️ from 65)
Median Days on Market: 25 (⬆️ from 21)
Price Decreased: 29% (⬇️ from 31%)
Price Increased: 0% (↔️ from 0%)
Relisted: 5% (⬆️ from 4%)
Inventory: 78 (⬆️ from 72)
Median Rent: $5,350 (⬆️ from $5,263)
MAI: 45 (↔️ from 45) (📈 Strong Seller's Market)

Market Analysis: Potomac maintains stability with MAI holding at 45 and pricing metrics flat. Slight moderation in price reduction activity suggests continued market adjustment, while performance across segments remains relatively consistent for this premium market.

🏡 Rockville, MD – Single-Family Homes

Median List Price: $899,000 (⬆️ from $849,995)
Median Price of New Listings: $830,000 (⬆️ from $655,000)
Price Per Square Foot: $350 (↔️ from $350)
Average Days on Market: 38 (⬇️ from 39)
Median Days on Market: 21 (⬆️ from 14)
Price Decreased: 41% (⬇️ from 45%)
Price Increased: 2% (⬆️ from 1%)
Relisted: 9% (⬇️ from 10%)
Inventory: 90 (⬆️ from 80)
Median Rent: $3,400 (⬆️ from $3,300)
MAI: 56 (⬇️ from 58) (📈 Strong Seller's Market)

Market Analysis: Rockville shows pricing resilience with median list price increasing and new listings entering higher. Despite MAI cooling from 58 to 56, reduced price-cutting activity and stable marketing times suggest market fundamentals remain solid.

🏢 Rockville, MD – Condos/Townhomes

Median List Price: $444,450 (⬇️ from $465,000)
Median Price of New Listings: $567,000 (⬆️ from $484,950)
Price Per Square Foot: $345 (⬇️ from $350)
Average Days on Market: 53 (⬇️ from 58)
Median Days on Market: 21 (⬇️ from 28)
Price Decreased: 32% (↔️ from 32%)
Price Increased: 1% (⬇️ from 3%)
Relisted: 9% (↔️ from 9%)
Inventory: 134 (⬆️ from 127)
Median Rent: $2,500 (↔️ from $2,500)
MAI: 42 (⬇️ from 43) (📊 Slight Seller's Advantage)

Market Analysis: Shows improvement with homes selling faster and higher new listing prices ($567K vs $485K) indicating seller confidence. While MAI moderates slightly to 42, marketing time improvements suggest steady buyer engagement.

🏡 Silver Spring, MD – Single-Family Homes

Median List Price: $689,000 (⬇️ from $695,000)
Median Price of New Listings: $639,999 (⬇️ from $722,000)
Price Per Square Foot: $326 (⬇️ from $327)
Average Days on Market: 45 (⬇️ from 48)
Median Days on Market: 14 (↔️ from 14)
Price Decreased: 36% (⬇️ from 40%)
Price Increased: 2% (↔️ from 2%)
Relisted: 7% (⬆️ from 3%)
Inventory: 145 (⬆️ from 119)
Median Rent: $3,200 (↔️ from $3,200)
MAI: 55 (⬇️ from 57) (📈 Strong Seller's Market)

Market Analysis: Silver Spring maintains strong performance with median time holding at 14 days despite inventory increases. MAI cooling from 57 to 55 and reduced price-cutting activity (36% vs 40%) suggest market equilibrium in this value-conscious segment.

🏢 Silver Spring, MD – Condos/Townhomes

Median List Price: $289,975 (⬆️ from $280,000)
Median Price of New Listings: $364,750 (⬆️ from $354,900)
Price Per Square Foot: $252 (⬇️ from $256)
Average Days on Market: 63 (⬆️ from 62)
Median Days on Market: 42 (⬆️ from 35)
Price Decreased: 41% (⬇️ from 42%)
Price Increased: 2% (⬆️ from 1%)
Relisted: 8% (↔️ from 8%)
Inventory: 170 (⬆️ from 163)
Median Rent: $1,975 (↔️ from $1,975)
MAI: 43 (⬆️ from 42) (📊 Slight Seller's Advantage)

Market Analysis: Shows modest improvement with MAI rising from 42 to 43 and higher new listing prices indicating returning seller confidence. Despite some slower sales, reduced price-cutting activity suggests market stabilization.

Key Takeaways

Homes Are Selling Faster in Premium Markets: The most significant changes appear in how quickly homes sell rather than MAI movements, with Chevy Chase single-family homes now selling in 21 days instead of 42 days, and Bethesda dropping from 49 to 35 days, indicating buyers are responding to market adjustments.

Homes Selling Faster Shows Buyer Re-engagement: Multiple communities show homes selling significantly faster, with Chevy Chase experiencing the most dramatic change as homes now sell in 21 days instead of 42 days, while Bethesda improved from 49 to 35 days, indicating buyers are responding to adjusted pricing and seasonal opportunities.

Price Reduction Activity Moderates Significantly: Kensington leads the improvement with price-cutting activity dropping dramatically from 52% to 35%, while several other communities show modest decreases, suggesting markets are achieving better price equilibrium after recent adjustments.

Market Segmentation Moderates Slightly: While luxury properties continue facing challenges, the performance gap shows some improvement with better sales rates across price tiers, though ultra-premium properties still require extended marketing periods.

Inventory Management Improves: Despite inventory increases across most communities, improved marketing times suggest markets are efficiently processing available supply, with many areas maintaining seller-favorable conditions despite seasonal transitions.

Looking Ahead: Post-Holiday Competition Expected

As predicted in our Weekend Market Pulse, this week should see renewed buyer competition following the Memorial Day holiday pattern. Historical data shows that while Memorial Day weekend itself typically sees quieter activity, the week following the holiday traditionally brings a significant pickup in buyer engagement, often exceeding even pre-holiday levels.

With substantial pent-up demand evident in recent weeks, and the seasonal ebb and flow suggesting buyers found opportunities during the holiday weekend, sellers should prepare for intensified competition in the coming days. This post-Memorial Day surge could mean even more competitive conditions than we experienced in the lead-up to the holiday.