Market Monday: October 28, 2024
The real estate market is showcasing distinct segmentation trends this fall. Interest rates and low inventory are key factors shaping the landscape, influencing both buyer behavior and seller strategies. Whether you are considering buying or selling, it’s essential to stay informed about these trends. Read on for the latest insights and how they might impact your next steps.
📊 Market Pulse Summary: October 23, 2024
Our latest Market Pulse report reveals nuanced shifts in buyer behavior, emphasizing market segmentation. While the average number of offers per property decreased from 2.4 to 2.0, a higher percentage of properties—67% up from 58%—received multiple offers. Above-list offers remained steady at 58%, but below-list offers increased to 25%, indicating that buyers are testing seller flexibility in certain segments. This blend of aggressive and conservative offers underscores the varied dynamics across different neighborhoods and price points.
Market Segmentation: Competition is intensifying in specific areas, with high-demand neighborhoods experiencing more bidding wars and buyers often waiving inspections—reflected in the rise of no-inspection offers to 33%. Conversely, full inspections increased to 42%, showing that in other segments, buyers prioritize thorough due diligence despite competitive pressures. The sharp drop in pre-inspections to 8% further highlights these divergent strategies. These trends illustrate a segmented market where buyer approaches vary significantly based on location and property price point.
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: $2,400,000
Median Price of New Listings: $2,159,500
Price Per Square Foot: $473
Average Days on Market: 76
Median Days on Market: 49
Price Decreased: 27% ⬇️
Price Increased: 1% ⬆️
Relisted: 12%
Inventory: 101
Median Rent: $4,498
Market Action Index (MAI): 47 (📈 Strong Seller’s Market)
Market Analysis:
The Bethesda single-family home market remains robust, with a strong seller’s market indicated by an MAI of 47. Inventory levels are moderate at 101 homes, and the high median list price reflects the area’s luxury market. Homes are spending an average of 76 days on the market, suggesting that while demand is strong, higher-priced homes may take longer to sell. Sellers should price competitively due to 27% of listings experiencing price decreases. Buyers should be prepared for negotiation opportunities on homes with longer days on market or recent price reductions.
🏢 Bethesda, MD - Condos/Townhomes
Median List Price: $475,000
Median Price of New Listings: $516,500
Price Per Square Foot: $332
Average Days on Market: 58
Median Days on Market: 35
Price Decreased: 26% ⬇️
Price Increased: 4% ⬆️
Relisted: 7%
Inventory: 27
Median Rent: $3,000
Market Action Index (MAI): 52 (📈 Strong Seller’s Market)
Market Analysis:
The condo and townhome market in Bethesda is also a strong seller’s market, with an MAI of 52. Inventory is low at 27 units, leading to increased competition among buyers. Properties are moving at a moderate pace, with a median of 35 days on market. Sellers should remain mindful of pricing strategies as 26% of listings have seen price decreases. Buyers should act quickly and look for opportunities among listings with recent price reductions.
🏡 Chevy Chase, MD - Single-Family Homes
Median List Price: $2,737,050
Median Price of New Listings: $2,164,950
Price Per Square Foot: $576
Average Days on Market: 74
Median Days on Market: 46
Price Decreased: 36% ⬇️
Price Increased: 0%
Relisted: 19%
Inventory: 36
Median Rent: $4,500
Market Action Index (MAI): 41 (📊 Slight Seller’s Advantage)
Market Analysis:
Chevy Chase’s single-family home market shows a slight seller’s advantage with an MAI of 41. The high median list price underscores the area’s upscale market. With 36% of listings experiencing price decreases and 19% being relisted, sellers may need to adjust pricing expectations. Homes are taking longer to sell, averaging 74 days on the market. Buyers may find negotiation opportunities, especially on properties with longer days on market or recent price reductions.
🏢 Chevy Chase, MD - Condos/Townhomes
Median List Price: $707,500
Median Price of New Listings: $524,000
Price Per Square Foot: $491
Average Days on Market: 70
Median Days on Market: 32
Price Decreased: 32% ⬇️
Price Increased: 0%
Relisted: 6%
Inventory: 50
Median Rent: $2,905
Market Action Index (MAI): 34 (📊 Slight Seller’s Advantage)
Market Analysis:
The condo and townhome market in Chevy Chase is cooling, with the MAI decreasing to 34. Inventory has increased, offering buyers more options. With 32% of listings experiencing price decreases, sellers should reassess their pricing strategies. The average days on market is relatively high at 70 days, indicating a slower sales pace. Buyers may have increased negotiation power in this market segment.
🏡 Gaithersburg, MD - Single-Family Homes
Median List Price: $897,000
Median Price of New Listings: $664,499
Price Per Square Foot: $275
Average Days on Market: 76
Median Days on Market: 42
Price Decreased: 37% ⬇️
Price Increased: 1% ⬆️
Relisted: 6%
Inventory: 70
Median Rent: $2,950
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. Inventory has increased, but demand continues to outpace supply. A significant 37% 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: $447,450
Median Price of New Listings: $482,000
Price Per Square Foot: $280
Average Days on Market: 30
Median Days on Market: 21
Price Decreased: 29% ⬇️
Price Increased: 2% ⬆️
Relisted: 5%
Inventory: 62
Median Rent: $2,028
Market Action Index (MAI): 69 (🔥 Strong Seller’s Market)
Market Analysis:
The condo and townhome market in Gaithersburg is highly competitive, with an MAI of 69 indicating a very strong seller’s market. Properties are selling quickly, with a median of 21 days on market. While 29% 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: $749,900
Median Price of New Listings: $552,500
Price Per Square Foot: $246
Average Days on Market: 45
Median Days on Market: 42
Price Decreased: 55% ⬇️
Price Increased: 3% ⬆️
Relisted: 9%
Inventory: 33
Median Rent: $2,650
Market Action Index (MAI): 52 (📈 Strong Seller’s Market)
Market Analysis:
Germantown’s single-family home market is a strong seller’s market with an MAI of 52. However, with 55% of listings experiencing price decreases, sellers should be cautious with pricing. The relatively low inventory of 33 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: $375,000
Price Per Square Foot: $266
Average Days on Market: 36
Median Days on Market: 28
Price Decreased: 33% ⬇️
Price Increased: 1% ⬆️
Relisted: 0%
Inventory: 67
Median Rent: $1,968
Market Action Index (MAI): 65 (🔥 Strong Seller’s Market)
Market Analysis:
The condo and townhome market in Germantown remains vigorous, with an MAI of 65. Properties are selling relatively quickly, with a median of 28 days on market. Despite a third 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: $1,100,000
Median Price of New Listings: $959,999
Price Per Square Foot: $412
Average Days on Market: 58
Median Days on Market: 21
Price Decreased: 31% ⬇️
Price Increased: 0%
Relisted: 12%
Inventory: 26
Median Rent: $3,125
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 31% 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: $2,499,000
Median Price of New Listings: $2,295,000
Price Per Square Foot: $343
Average Days on Market: 103
Median Days on Market: 56
Price Decreased: 26% ⬇️
Price Increased: 4% ⬆️
Relisted: 11%
Inventory: 57
Median Rent: $5,250
Market Action Index (MAI): 45 (📈 Strong Seller’s Market)
Market Analysis:
Potomac’s luxury market remains a strong seller’s market, but with longer average days on market at 103 days. High-end properties typically take longer to sell. With 26% 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: $749,000
Median Price of New Listings: $1,272,000
Price Per Square Foot: $346
Average Days on Market: 50
Median Days on Market: 35
Price Decreased: 39% ⬇️
Price Increased: 3% ⬆️
Relisted: 8%
Inventory: 61
Median Rent: $3,462
Market Action Index (MAI): 63 (🔥 Strong Seller’s Market)
Market Analysis:
Rockville’s single-family home market is highly competitive, with an MAI of 63. A significant 39% 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: $500,000
Median Price of New Listings: $714,450
Price Per Square Foot: $334
Average Days on Market: 58
Median Days on Market: 35
Price Decreased: 28% ⬇️
Price Increased: 4% ⬆️
Relisted: 10%
Inventory: 119
Median Rent: $2,500
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 119 units give buyers more options. With 28% of listings decreasing prices, sellers need to be competitive. Properties are spending an average of 58 days on the market, indicating a more balanced market.
🏡 Silver Spring, MD - Single-Family Homes
Median List Price: $685,000
Median Price of New Listings: $599,900
Price Per Square Foot: $323
Average Days on Market: 51
Median Days on Market: 28
Price Decreased: 37% ⬇️
Price Increased: 2% ⬆️
Relisted: 7%
Inventory: 163
Median Rent: $3,150
Market Action Index (MAI): 55 (📈 Strong Seller’s Market)
Market Analysis:
Silver Spring’s single-family home market remains active with an MAI of 55. Inventory has increased to 163 homes, offering buyers more selection. With 37% 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: $327,500
Median Price of New Listings: $350,000
Price Per Square Foot: $276
Average Days on Market: 49
Median Days on Market: 28
Price Decreased: 33% ⬇️
Price Increased: 1% ⬆️
Relisted: 7%
Inventory: 139
Median Rent: $1,999
Market Action Index (MAI): 51 (📈 Strong Seller’s Market)
Market Analysis:
The condo and townhome market in Silver Spring is a strong seller’s market with an MAI of 51. Inventory is relatively high at 139 units. With a third of listings decreasing prices, buyers may find favorable deals. Properties are spending an average of 49 days on the market, suggesting a healthy pace of sales.
Key Takeaways:
Market Segmentation Intensifies: The real estate market continues to be highly segmented, with competition increasing in specific neighborhoods and price points. High-demand areas are experiencing more multiple-offer situations, while other segments see buyers negotiating more on price and contingencies. This emphasizes the importance of localized market knowledge.
Shift in Buyer Competition: Although the average number of offers per listing has slightly decreased from 2.4 to 2.0, a higher percentage of properties—67% up from 58%—are receiving multiple offers. This suggests that buyer competition is becoming more concentrated in certain market segments.
Varied Pricing Strategies: Above-list offers remained steady at 58%, but below-list offers increased to 25%. This mix indicates that some buyers are testing seller flexibility on pricing, while others remain aggressive. Understanding these dynamics is crucial for setting realistic expectations.
Diverging Inspection Strategies Highlight Segmentation: Both full inspections and no-inspection offers have risen significantly, to 42% and 33% respectively, while pre-inspections have dropped sharply to 8%. This divergence indicates that buyers are adopting different strategies based on specific market segments—some prioritize thorough due diligence, while others waive inspections to strengthen their offers. These contrasting approaches further illustrate the market’s segmentation.
Interest Rate Outlook: With the Federal Reserve meeting approaching in early November, potential changes in interest rates could influence buyer activity. A decrease in rates may spur further buyer engagement, potentially intensifying competition in the market.
As we move further into fall, staying informed about these segmented market trends is essential for making strategic real estate decisions. Sellers should utilize hyperlocal market data to understand their neighborhood’s dynamics, enabling them to price homes competitively and attract strong offers while minimizing time on the market. Buyers should be aware of varying competition levels across different areas to tailor their offer and inspection strategies effectively.
Understanding these localized nuances can significantly impact your success in today’s evolving market. If you’re considering buying or selling and want a personalized assessment of how these trends affect your local area, feel free to reach out at 301-564-3058 or Corey@FeldmanGroupRe.com. Let’s collaborate to develop a tailored strategy that aligns with your real estate goals in this dynamic environment!