Market Monday: November 4, 2024
This week shows a notable softening in buyer demand, likely influenced by tomorrow’s election. This week my business seemed reflective of the market—slowed and segmented. I had a property in Bethesda go under contract, but overall, showings were significantly down. I expect things to pick up once the election is over, but given it might take a few days before we have final results, I’m hesitant to say whether the anticipated boost in activity will be this weekend or the following week.
Looking at this weekend’s market pulse, the average number of offers per property decreased from 2.0 to 1.6, with 50% of new contracts receiving multiple offers, down from 67% last week. Above-list offers increased to 63%, while at-list offers rose to 37%. There were no below-list offers this week, compared to 25% last week.
Market Segmentation: Competition and pricing remain strong in high-demand areas, but buyers are showing increased caution. Full inspections rose to 49%, and pre-inspections jumped to 25%, indicating buyers are prioritizing due diligence. The decline in no-inspection offers to 13% reflects this cautious approach.
For more details, check out the full Weekend Market Pulse report here.
Let’s dive into this week’s data to see how these developments are impacting our local neighborhoods.
🏡 Bethesda, MD - Single-Family Homes
• Median List Price: $2,600,000
• Median Price of New Listings: $1,474,760
• Price Per Square Foot: $470
• Average Days on Market: 80
• Median Days on Market: 56
• Price Decreased: 25% ⬇️
• Price Increased: 1% ⬆️
• Relisted: 10%
• Inventory: 93
• Median Rent: $4,500
• Market Action Index (MAI): 46 (📈 Strong Seller’s Market)
Market Analysis:
The Bethesda single-family home market is showing signs of cooling, with the MAI decreasing to 46 from last month’s 47. Inventory levels have held steady at 93 homes. The median list price has increased to $2,600,000, indicating continued strength in the luxury segment. Homes are spending an average of 80 days on the market, suggesting a moderate pace of sales. With 25% of listings experiencing price decreases and 10% being relisted, sellers should be strategic in pricing. Buyers may find opportunities among homes with longer days on market or recent price reductions.
🏢 Bethesda, MD - Condos/Townhomes
• Median List Price: $496,500
• Median Price of New Listings: $498,000
• Price Per Square Foot: $372
• Average Days on Market: 61
• Median Days on Market: 42
• Price Decreased: 32% ⬇️
• Price Increased: 4% ⬆️
• Relisted: 7%
• Inventory: 28
• Median Rent: $2,980
• Market Action Index (MAI): 51 (📈 Strong Seller’s Market)
Market Analysis:
The condo and townhome market in Bethesda remains a strong seller’s market with an MAI of 51, down slightly from last month’s 53. Inventory has increased to 28 units, offering more options for buyers. Properties are spending an average of 61 days on the market, with a median of 42 days. Sellers should be mindful of pricing, as 32% of listings have seen price decreases. Buyers should act promptly and consider properties with recent price reductions for potential value.
🏡 Chevy Chase, MD - Single-Family Homes
• Median List Price: $2,997,500
• Median Price of New Listings: $3,795,000
• Price Per Square Foot: $625
• Average Days on Market: 75
• Median Days on Market: 49
• Price Decreased: 36% ⬇️
• Price Increased: 0%
• Relisted: 17%
• Inventory: 36
• Median Rent: $4,500
• Market Action Index (MAI): 41 (📊 Slight Seller’s Advantage)
Market Analysis:
The single-family home market in Chevy Chase has reached a pricing plateau, with the median list price holding steady at $2,997,500. The MAI is at 41, indicating a slight seller’s advantage. Inventory has decreased to 36 homes, and properties are spending an average of 75 days on the market. Sellers should be mindful of pricing, as 36% of listings have seen price decreases and 17% have been relisted. Buyers may find opportunities among homes with longer days on market or recent price reductions.
🏢 Chevy Chase, MD - Condos/Townhomes
• Median List Price: $674,000
• Median Price of New Listings: $482,000
• Price Per Square Foot: $491
• Average Days on Market: 75
• Median Days on Market: 39
• Price Decreased: 40% ⬇️
• Price Increased: 2% ⬆️
• Relisted: 6%
• Inventory: 50
• Median Rent: $2,900
• Market Action Index (MAI): 34 (📊 Slight Seller’s Advantage)
Market Analysis:
The condo and townhome market in Chevy Chase is experiencing a cooling trend, with the MAI decreasing to 34. Inventory has increased to 50 units, providing more options for buyers. The median list price is $674,000, and properties are spending an average of 75 days on the market. With 40% of listings experiencing price decreases, sellers should reassess their pricing strategies. Buyers may have increased negotiation power in this market segment.
🏡 Gaithersburg, MD - Single-Family Homes
• Median List Price: $892,450
• Median Price of New Listings: $839,900
• Price Per Square Foot: $272
• Average Days on Market: 83
• Median Days on Market: 49
• Price Decreased: 36% ⬇️
• Price Increased: 2% ⬆️
• Relisted: 6%
• Inventory: 66
• Median Rent: $2,950
• Market Action Index (MAI): 51 (📈 Strong Seller’s Market)
Market Analysis:
Gaithersburg’s single-family home market remains a strong seller’s market with an MAI of 51. Inventory has increased to 66 homes, but demand continues to outpace supply. A significant 36% of listings have decreased prices, signaling potential negotiation opportunities for buyers. Sellers should price competitively to attract offers in a timely manner.
🏢 Gaithersburg, MD - Condos/Townhomes
• Median List Price: $445,000
• Median Price of New Listings: $399,980
• Price Per Square Foot: $278
• Average Days on Market: 35
• Median Days on Market: 28
• Price Decreased: 37% ⬇️
• Price Increased: 2% ⬆️
• Relisted: 5%
• Inventory: 59
• Median Rent: $2,045
• Market Action Index (MAI): 68 (🔥 Strong Seller’s Market)
Market Analysis:
The condo and townhome market in Gaithersburg remains highly competitive, with an MAI of 68 indicating a strong seller’s market. Properties are selling quickly, with a median of 28 days on market. While 37% of listings have decreased prices, demand remains high. Buyers should act swiftly, and sellers can expect favorable conditions.
🏡 Germantown, MD - Single-Family Homes
• Median List Price: $839,900
• Median Price of New Listings: $435,000
• Price Per Square Foot: $268
• Average Days on Market: 49
• Median Days on Market: 49
• Price Decreased: 57% ⬇️
• Price Increased: 4% ⬆️
• Relisted: 13%
• Inventory: 23
• Median Rent: $2,575
• Market Action Index (MAI): 55 (📈 Strong Seller’s Market)
Market Analysis:
Germantown’s single-family home market is a strong seller’s market with an MAI of 55. However, with 57% of listings experiencing price decreases, sellers should be cautious with pricing. The relatively low inventory of 23 homes keeps competition moderate. Buyers may find advantageous deals among homes with price reductions.
🏢 Germantown, MD - Condos/Townhomes
• Median List Price: $365,000
• Median Price of New Listings: $367,450
• Price Per Square Foot: $268
• Average Days on Market: 33
• Median Days on Market: 28
• Price Decreased: 31% ⬇️
• Price Increased: 3% ⬆️
• Relisted: 3%
• Inventory: 68
• Median Rent: $1,984
• Market Action Index (MAI): 63 (🔥 Strong Seller’s Market)
Market Analysis:
The condo and townhome market in Germantown remains vigorous, with an MAI of 63. Properties are selling relatively quickly, with a median of 28 days on market. Despite 31% of listings seeing price decreases, demand is strong. Sellers should price accurately to capitalize on market conditions, while buyers should be prepared to move quickly.
🏡 Kensington, MD - Single-Family Homes
• Median List Price: $959,999
• Median Price of New Listings: $780,000
• Price Per Square Foot: $407
• Average Days on Market: 48
• Median Days on Market: 21
• Price Decreased: 35% ⬇️
• Price Increased: 0%
• Relisted: 12%
• Inventory: 26
• Median Rent: $3,150
• Market Action Index (MAI): 53 (📈 Strong Seller’s Market)
Market Analysis:
Kensington continues to experience a strong seller’s market with an MAI of 53. Low inventory levels contribute to competitive conditions. Sellers should note that 35% of listings have decreased prices, indicating the importance of strategic pricing. Buyers should act promptly when desirable properties become available.
🏡 Potomac, MD - Single-Family Homes
• Median List Price: $2,539,500
• Median Price of New Listings: $1,624,500
• Price Per Square Foot: $365
• Average Days on Market: 99
• Median Days on Market: 56
• Price Decreased: 23% ⬇️
• Price Increased: 5% ⬆️
• Relisted: 13%
• Inventory: 60
• Median Rent: $5,098
• Market Action Index (MAI): 46 (📈 Strong Seller’s Market)
Market Analysis:
Potomac’s luxury market remains a strong seller’s market, but with longer average days on market at 99 days. High-end properties typically take longer to sell. With 23% of listings experiencing price decreases, sellers should be mindful of market trends and price competitively. Buyers may find opportunities among homes with recent price adjustments.
🏡 Rockville, MD - Single-Family Homes
• Median List Price: $850,000
• Median Price of New Listings: $1,375,000
• Price Per Square Foot: $367
• Average Days on Market: 54
• Median Days on Market: 42
• Price Decreased: 42% ⬇️
• Price Increased: 6% ⬆️
• Relisted: 12%
• Inventory: 50
• Median Rent: $3,400
• Market Action Index (MAI): 64 (🔥 Strong Seller’s Market)
Market Analysis:
Rockville’s single-family home market is highly competitive, with an MAI of 64. A significant 42% of listings have decreased prices, suggesting that while demand is strong, buyers are price-sensitive. Sellers should ensure homes are priced appropriately to attract swift offers. Buyers should be prepared to act quickly but can find value in homes with recent price reductions.
🏢 Rockville, MD - Condos/Townhomes
• Median List Price: $465,000
• Median Price of New Listings: $249,900
• Price Per Square Foot: $328
• Average Days on Market: 59
• Median Days on Market: 35
• Price Decreased: 28% ⬇️
• Price Increased: 6% ⬆️
• Relisted: 8%
• Inventory: 109
• Median Rent: $2,501
• Market Action Index (MAI): 40 (📊 Slight Seller’s Advantage)
Market Analysis:
The condo and townhome market in Rockville shows a slight seller’s advantage with an MAI of 40. Higher inventory levels at 109 units give buyers more options. With 28% of listings decreasing prices, sellers need to be competitive. Properties are spending an average of 59 days on the market, indicating a more balanced market.
🏡 Silver Spring, MD - Single-Family Homes
• Median List Price: $678,000
• Median Price of New Listings: $665,000
• Price Per Square Foot: $323
• Average Days on Market: 56
• Median Days on Market: 28
• Price Decreased: 42% ⬇️
• Price Increased: 3% ⬆️
• Relisted: 8%
• Inventory: 161
• Median Rent: $3,200
• Market Action Index (MAI): 54 (📈 Strong Seller’s Market)
Market Analysis:
Silver Spring’s single-family home market remains active with an MAI of 54. Inventory has increased to 161 homes, offering buyers more selection. With 42% of listings experiencing price decreases, sellers should be attentive to pricing strategies. Homes are moving at a steady pace, with a median of 28 days on market.
🏢 Silver Spring, MD - Condos/Townhomes
• Median List Price: $299,900
• Median Price of New Listings: $269,000
• Price Per Square Foot: $269
• Average Days on Market: 52
• Median Days on Market: 35
• Price Decreased: 32% ⬇️
• Price Increased: 1% ⬆️
• Relisted: 6%
• Inventory: 141
• Median Rent: $1,999
• Market Action Index (MAI): 49 (📈 Strong Seller’s Market)
Market Analysis:
The condo and townhome market in Silver Spring is a strong seller’s market with an MAI of 49. Inventory is relatively high at 141 units. With 32% of listings decreasing prices, buyers may find favorable deals. Properties are spending an average of 52 days on the market, suggesting a healthy pace of sales.
📌 Key Takeaways
• Market Softening Ahead of Election: Buyer demand is showing signs of softening, likely influenced by the upcoming election. There’s a noticeable decrease in the number of offers per property and fewer multiple-offer situations, indicating increased buyer caution.
• Shift in Buyer Behavior: Buyers are becoming more price-conscious, with a higher proportion of at-list offers and a focus on competitively priced properties. Aggressive bidding is less prevalent, reflecting a more measured approach in the current market.
• Increased Due Diligence: There’s a significant rise in full inspections and pre-inspections, highlighting that buyers are prioritizing thorough evaluations before committing. The decline in no-inspection offers underscores this trend toward caution.
• Market Segmentation Continues: High-demand areas still experience strong competition, particularly in segments and certain neighborhoods. Conversely, some markets are cooling, with increased inventory and longer days on market, giving buyers more leverage.
• Price Sensitivity Across Markets: Many listings have experienced price decreases, indicating that while demand remains, buyers expect competitive pricing. Sellers need to be mindful of this price sensitivity to attract potential buyers.
• Strategic Approach for Sellers: With signs of cooling in the market, especially in higher-priced segments, sellers should focus on strategic pricing and presentation. Accurate and competitive pricing is crucial to generate interest and achieve timely sales.
• Opportunities for Buyers: The current market conditions present opportunities for buyers to negotiate and find value, especially in areas showing a slight seller’s advantage. Increased inventory and price reductions can be advantageous for those ready to act.
If you have any questions or need personalized advice based on these trends, please don’t hesitate to reach out at 301-564-3058 or Corey@FeldmanGroupRe.com. We’re here to help you navigate the evolving market conditions.
