Market Monday: October 21, 2024
Welcome to this week’s Market Monday report!
As we progress through October, the real estate market continues to display dynamic shifts. Interest rates and limited inventory remain key factors shaping the landscape, influencing both buyer behavior and seller strategies. Whether you're considering buying or selling, staying informed about these evolving trends is essential. Read on for the latest insights and how they might impact your next steps.
📊 Market Pulse Summary: October 18, 2024
Our latest Market Pulse report shows a noticeable increase in buyer competition. The average number of offers per listing has risen from 1.3 to 2.4, and more offers are coming in above the list price, with 58% compared to 37% last week. Buyers are becoming more aggressive, as pre-inspections have surged to 37%, reflecting a shift toward quicker decision-making, while still doing due diligence.
Market Segmentation: This heightened competition is not uniform across all areas. Certain neighborhoods and price points are outperforming others, indicating a segmented market. High-demand areas with limited inventory are experiencing more multiple-offer situations and offers above list price. Buyers are moving swiftly in these segments, driving up competition.
While the data suggests a heating market, this could be tied to low inventory levels, although that's speculative at this point. With the Federal Reserve meeting in early November, we may see a potential shift if rates decrease, possibly spurring further buyer activity.
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: $2,372,500
Median Price of New Listings: $1,599,900
Price Per Square Foot: $481
Average Days on Market: 80
Median Days on Market: 49
Price Decreased: 29% ⬇️
Price Increased: 2% ⬆️
Relisted: 13%
Inventory: 98
Median Rent: $4,500
Market Action Index (MAI): 48 (Strong Seller’s Market)
Market Analysis:
Bethesda's single-family home market remains a strong seller's market with an MAI of 48, slightly down from last month's 49. Inventory has held steady at 98 homes. The median list price is high at $2,372,500, reflecting the area's luxury market. Average days on market is 80, with a median of 49 days, indicating that homes are taking longer to sell. With 29% of listings experiencing price decreases, sellers should be cautious with pricing strategies to align with market expectations. Buyers may find opportunities for negotiation, especially on properties that have been on the market longer or have had price reductions.
🏢 Bethesda, MD - Condos/Townhomes
Median List Price: $549,495
Median Price of New Listings: $329,000
Price Per Square Foot: $416
Average Days on Market: 51
Median Days on Market: 28
Price Decreased: 23% ⬇️
Price Increased: 0%
Relisted: 8%
Inventory: 26
Median Rent: $3,000
Market Action Index (MAI): 52 (Strong Seller’s Market)
Market Analysis:
The condo and townhome market in Bethesda remains a strong seller's market with an MAI of 52, down from last month's 55. Inventory has increased to 26 units. The average days on market is 51, with a median of 28 days, suggesting a moderate sales pace. With 23% of listings experiencing price decreases, sellers should price competitively to attract buyers. Buyers may find opportunities for negotiation, particularly on properties with longer days on market or recent price reductions.
🏡 Chevy Chase, MD - Single-Family Homes
Median List Price: $2,400,000
Median Price of New Listings: $2,895,000
Price Per Square Foot: $609
Average Days on Market: 77
Median Days on Market: 56
Price Decreased: 31% ⬇️
Price Increased: 0%
Relisted: 11%
Inventory: 35
Median Rent: $4,500
Market Action Index (MAI): 41 (Slight Seller's Advantage)
Market Analysis:
Chevy Chase's single-family home market holds a slight seller's advantage with an MAI of 41, unchanged from last month. Inventory remains steady at 35 homes. The median list price is $2,400,000, indicative of a luxury market. Average days on market is 77, with a median of 56 days, showing that homes are taking longer to sell. With 31% of listings experiencing price decreases, sellers should be mindful of pricing to attract buyers. Buyers may find increased negotiation power, especially on properties with extended days on market.
🏢 Chevy Chase, MD - Condos/Townhomes
Median List Price: $749,500
Median Price of New Listings: $825,000
Price Per Square Foot: $535
Average Days on Market: 81
Median Days on Market: 98
Price Decreased: 32% ⬇️
Price Increased: 0%
Relisted: 6%
Inventory: 34
Median Rent: $2,900
Market Action Index (MAI): 35 (Slight Seller's Advantage)
Market Analysis:
The condo and townhome market in Chevy Chase has a slight seller's advantage with an MAI of 35, down from last month's 37. Inventory has increased to 34 units. The average days on market is high at 81 days, with a median of 98 days, indicating a slower market pace. With 32% of listings experiencing price decreases, sellers should adjust pricing strategies to attract buyers. Buyers have significant opportunities for negotiation, especially on properties with longer days on market or recent price reductions.
🏡 Gaithersburg, MD - Single-Family Homes
Median List Price: $899,000
Median Price of New Listings: $839,900
Price Per Square Foot: $274
Average Days on Market: 70
Median Days on Market: 35
Price Decreased: 36% ⬇️
Price Increased: 4% ⬆️
Relisted: 4%
Inventory: 75
Median Rent: $2,925
Market Action Index (MAI): 53 (Strong Seller’s Market)
Market Analysis:
Gaithersburg's single-family home market remains a strong seller's market with an MAI of 53, down from last month's 57. Inventory has increased to 75 homes. The median list price is $899,000. Average days on market is 70, with a median of 35 days, suggesting homes are selling at a moderate pace. With 36% of listings experiencing price decreases, sellers should price homes competitively. Buyers should be prepared to act quickly but may find negotiation opportunities on homes with price reductions.
🏢 Gaithersburg, MD - Condos/Townhomes
Median List Price: $449,950
Median Price of New Listings: $549,999
Price Per Square Foot: $280
Average Days on Market: 30
Median Days on Market: 21
Price Decreased: 27% ⬇️
Price Increased: 5% ⬆️
Relisted: 5%
Inventory: 44
Median Rent: $2,002
Market Action Index (MAI): 71 (Strong Seller’s Market)
Market Analysis:
The condo and townhome market in Gaithersburg is very strong for sellers, with an MAI of 71, slightly down from last month's 73. Inventory has decreased to 44 units, intensifying competition. The average days on market is 30, with a median of 21 days, indicating quick sales. With 27% of listings experiencing price decreases, sellers should still price strategically. Buyers need to act swiftly and be prepared for multiple-offer situations but may find some opportunities among listings with price reductions.
🏡 Germantown, MD - Single-Family Homes
Median List Price: $795,000
Median Price of New Listings: $899,000
Price Per Square Foot: $254
Average Days on Market: 39
Median Days on Market: 35
Price Decreased: 45% ⬇️
Price Increased: 3% ⬆️
Relisted: 6%
Inventory: 33
Median Rent: $2,650
Market Action Index (MAI): 57 (Strong Seller’s Market)
Market Analysis:
Germantown's single-family home market remains strong with an MAI of 57, down from last month's 64. Inventory has increased to 33 homes. The median list price is $795,000. Average days on market is 39, with a median of 35 days, indicating a balanced sales pace. With 45% of listings experiencing price decreases, a significant number of sellers are adjusting prices. Sellers should be cautious with pricing to attract buyers. Buyers may find good opportunities among homes with recent price reductions.
🏢 Germantown, MD - Condos/Townhomes
Median List Price: $402,450
Median Price of New Listings: $369,950
Price Per Square Foot: $268
Average Days on Market: 33
Median Days on Market: 14
Price Decreased: 27% ⬇️
Price Increased: 0%
Relisted: 2%
Inventory: 64
Median Rent: $1,986
Market Action Index (MAI): 67 (Strong Seller’s Market)
Market Analysis:
The condo and townhome market in Germantown remains a strong seller's market with an MAI of 67, down from last month's 72. Inventory has increased to 64 units. The average days on market is 33, with a median of just 14 days, indicating rapid sales. With 27% of listings experiencing price decreases, sellers should price competitively. Buyers should be prepared to move quickly in this fast-paced market but can look for opportunities among properties with price reductions.
🏡 Kensington, MD - Single-Family Homes
Median List Price: $1,247,450
Median Price of New Listings: $784,000
Price Per Square Foot: $412
Average Days on Market: 57
Median Days on Market: 18
Price Decreased: 25% ⬇️
Price Increased: 0%
Relisted: 13%
Inventory: 24
Median Rent: $3,220
Market Action Index (MAI): 56 (Strong Seller’s Market)
Market Analysis:
Kensington's single-family home market continues to heat up with an MAI of 56, up from last month's 53. Inventory has decreased to 24 homes, increasing competition among buyers. The median list price is $1,247,450. Average days on market is 57, with a median of 18 days, indicating that well-priced homes are selling quickly. With 25% of listings experiencing price decreases, sellers should ensure pricing aligns with market conditions. Buyers need to be prepared to act swiftly but may find opportunities among homes with recent price reductions.
🏡 Potomac, MD - Single-Family Homes
Median List Price: $1,988,000
Median Price of New Listings: $1,360,000
Price Per Square Foot: $344
Average Days on Market: 98
Median Days on Market: 49
Price Decreased: 27% ⬇️
Price Increased: 3% ⬆️
Relisted: 10%
Inventory: 59
Median Rent: $5,313
Market Action Index (MAI): 46 (Strong Seller’s Market)
Market Analysis:
Potomac's single-family home market remains a strong seller's market with an MAI of 46, slightly up from last month's 45. Inventory has decreased to 59 homes. The median list price is $1,988,000, reflecting a high-end market. Average days on market is 98, with a median of 49 days, indicating homes are taking longer to sell, especially in higher price ranges. With 27% of listings experiencing price decreases, sellers should be cautious with pricing. Buyers may find negotiation opportunities, particularly on properties that have been on the market longer or have had price reductions.
🏡 Rockville, MD - Single-Family Homes
Median List Price: $712,400
Median Price of New Listings: $575,000
Price Per Square Foot: $345
Average Days on Market: 46
Median Days on Market: 28
Price Decreased: 38% ⬇️
Price Increased: 4% ⬆️
Relisted: 11%
Inventory: 72
Median Rent: $3,438
Market Action Index (MAI): 62 (Strong Seller’s Market)
Market Analysis:
Rockville's single-family home market remains robust with an MAI of 62, down from last month's 65. Inventory has held steady at 72 homes. The median list price is $712,400. Average days on market is 46, with a median of 28 days, indicating homes are selling relatively quickly. With 38% of listings experiencing price decreases, sellers should price competitively. Buyers should be prepared to act swiftly but may find negotiation opportunities on homes with price reductions or longer days on market.
🏢 Rockville, MD - Condos/Townhomes
Median List Price: $610,000
Median Price of New Listings: $777,200
Price Per Square Foot: $338
Average Days on Market: 72
Median Days on Market: 42
Price Decreased: 25% ⬇️
Price Increased: 6% ⬆️
Relisted: 11%
Inventory: 87
Median Rent: $2,503
Market Action Index (MAI): 40 (Slight Seller's Advantage)
Market Analysis:
The condo and townhome market in Rockville has cooled, with the MAI decreasing from 44 last month to 40. Inventory has increased to 87 units. The average days on market is 72, with a median of 42 days, suggesting a slower sales pace. With 25% of listings experiencing price decreases, sellers should adjust pricing strategies accordingly. Buyers may find increased opportunities and negotiation power, especially on properties that have been on the market longer or have had price reductions.
🏡 Silver Spring, MD - Single-Family Homes
Median List Price: $689,000
Median Price of New Listings: $634,900
Price Per Square Foot: $309
Average Days on Market: 52
Median Days on Market: 28
Price Decreased: 38% ⬇️
Price Increased: 3% ⬆️
Relisted: 8%
Inventory: 158
Median Rent: $3,000
Market Action Index (MAI): 57 (Strong Seller’s Market)
Market Analysis:
Silver Spring's single-family home market remains strong with an MAI of 57, down from last month's 60. Inventory has increased to 158 homes, providing more options for buyers. The median list price is $689,000. Average days on market is 52, with a median of 28 days, indicating a mix of quick sales and longer listings. With 38% of listings experiencing price decreases, sellers should be mindful of market pricing. Buyers may find opportunities among homes with price reductions or longer days on market.
🏢 Silver Spring, MD - Condos/Townhomes
Median List Price: $355,000
Median Price of New Listings: $299,900
Price Per Square Foot: $266
Average Days on Market: 54
Median Days on Market: 28
Price Decreased: 33% ⬇️
Price Increased: 0%
Relisted: 9%
Inventory: 82
Median Rent: $2,025
Market Action Index (MAI): 55 (Strong Seller’s Market)
Market Analysis:
The condo and townhome market in Silver Spring remains a strong seller's market with an MAI of 55, down from last month's 57. Inventory has increased to 82 units. The average days on market is 54, with a median of 28 days, suggesting a moderate sales pace. With 33% of listings experiencing price decreases, sellers should price competitively to attract buyers. Buyers may find negotiation opportunities, particularly on properties with longer days on market or recent price reductions.
Key Takeaways:
Surge in Buyer Competition: The average number of offers per listing has increased significantly from 1.3 to 2.4. Additionally, 58% of offers are now coming in above the list price, up from 37% last week. This uptick indicates that buyers are becoming more aggressive, especially in high-demand neighborhoods with limited inventory.
Shift in Inspection Strategies: Pre-inspections have surged to 37%, up from 0% the previous week. This shift suggests that buyers are eager to make their offers more competitive by reducing contingencies and moving quickly, reflecting a heightened sense of urgency in the market.
Market Segmentation Continues: While higher-end areas like Bethesda and Potomac still experience longer days on market and higher price reductions, more moderately priced markets such as Germantown and Gaithersburg remain strong seller's markets with quicker sales and intense competition. This segmentation highlights the importance of localized market knowledge.
Interest Rate Outlook: While interest rates remain a factor influencing buyer behavior, the upcoming Federal Reserve meeting in early November could lead to potential shifts. A decrease in rates may spur further buyer activity, adding to the competition in the market.
As we move further into fall, the real estate market is highly segmented, influenced by localized factors such as inventory levels and buyer demand. Sellers should take advantage of hyperlocal market data to understand the specific dynamics of their neighborhood. By analyzing recent comparable sales, pricing trends, and buyer activity in their immediate area, sellers can price their homes appropriately to attract strong offers and reduce time on the market.
Buyers should also be mindful of these market nuances. Understanding which neighborhoods are experiencing higher competition can help in strategizing offers and negotiations.
Staying informed about these localized trends is crucial for making the best real estate decisions. If you're considering buying or selling and want a personalized assessment of how these trends impact your local market, feel free to reach out at 301-564-3058 or Corey@FeldmanGroupRe.com. Let's strategize the best approach for your real estate goals in this evolving market!