Welcome to the Weekend Market Pulse

You may be seeing national news headlines about real estate that are less than positive, but it's important to understand that while real estate is influenced by national and geopolitical events, it is still inherently local at its core. What happens in California, Florida, or Texas markets often has little bearing on what we're experiencing here in the DC Metro area.

Last week, I predicted we'd see "another bump" in market activity after the cooling trend we observed in mid-to-late March. The data is in, and that prediction was spot on. We've seen a dramatic reversal in nearly every market metric, with competition surging back. The dip we saw appears to have been a brief pause, likely a combination of early spring inventory absorption, concerns about potential federal workforce reductions, tariffs, and inflation. But now? We're seeing renewed competitive intensity among active buyers, even though the overall buyer pool appears smaller than last year.

Competition Surges Back

* Multiple offers jumped to 69% of transactions, up from just 37% last week

* Average offers per property rose to 2.2, rebounding from 1.5 last week

* This confirms what many agents were seeing on the ground – buyers who paused briefly have jumped back in

Pricing

* 94% of homes sold above list price, a dramatic increase from 53% last week

* At-list sales dropped to just 6% (from 21%)

* Below-list sales completely disappeared (from 26% to 0%)

The combination of limited inventory and renewed buyer enthusiasm has bolstered the seller's advantage.

Buyers Making Major Inspection Concessions

* Full inspections plummeted to 12.9%, down from 47% last week

* Waived inspections more than doubled to 43.6% (from 21%)

* Pre-inspections increased to 24.8% (from 16%)

* Pass/fail options rose slightly to 18.8% (from 16%)

The pendulum has swung dramatically back toward seller-favorable terms. After a brief period where buyers could include full inspection contingencies, we're seeing a return to risk-taking as buyers compete for increasing but still limited inventory.

Market Forces: Rebound Drivers & Cautionary Signals

Interest rates have dropped and stabilized in recent weeks, with most lenders quoting in the mid 6% range. Several factors appear to be driving the competitive rebound:

* Seasonal pressure As we move deeper into spring, buyers who need to move before fall are feeling increasing urgency.

* Pent-up demand release The slight market pause we saw in previous weeks appears to have created demand that's now being activated.

* Federal workforce uncertainty I've had three federal employees and two federal contractors reach out to me in the past month to game out various scenarios based on their fear of losing their jobs under potential workforce reductions.

This last point is particularly notable. The administration's discussions about federal workforce changes appear to be creating both urgency for some (buy now before my situation changes) and hesitation for others (maybe I should wait until my employment is more secure).

However, alongside this rebound, I'm also seeing signals that warrant caution. While the competitive metrics were strong, they were slightly less robust than I would have anticipated based on my personal business experience and typical seasonal trends. Looking deeper, I examined showing data for March 2025 (see chart below), which is one of the earliest indicators of buyer demand.

The data reveals showing activity is down significantly compared to last year across all price ranges – from 15% to nearly 37% depending on the price point. This suggests that while our active buyers are extremely competitive, the overall buyer pool may be thinner than in previous spring markets.

Given this data point, I'm slightly less bullish on sustained price growth, as we're seeing signs of increasing inventory which could eventually put downward pressure on pricing. That said, this appears somewhat balanced by the fact that the buyer pool, while smaller, is more intense – and for now, absorption rates are keeping pace with the increasing inventory.

Quick Take for Buyers

Based on the showing data, this spring may hold more opportunities for buyers than I initially expected. The overall buyer pool appears smaller than last year, which could mean less competition for some properties. However, be aware that those buyers who are active are extraordinarily competitive – as evidenced by 94% of homes selling above list and inspection contingencies being waived at high rates.

To succeed in this market, preparation and decisiveness remain critical. Get pre-approved now, know your limits, and be ready to move quickly when the right property appears. Use my ZenList link for free, real-time access to listings before they hit major portals to give yourself the best possible advantage.

Quick Take for Sellers

The market remains strong for sellers, with a high percentage of homes selling above list price and buyers continuing to make concessions on contingencies. However, the significant drop in showing activity compared to last year (15-37% depending on price point) suggests a more nuanced reality. While active buyers are competitive, the total buyer pool appears smaller.

With fewer buyers overall, proper pricing strategy becomes even more critical. I find it helpful to test out pricing before a property hits the open market. While we're putting on finishing touches, I often like to test pricing with an internal brokerage exclusive – giving us valuable feedback from active agents before committing to a public list price.

This approach helps ensure we hit that pricing "sweet spot" that creates the competitive environment driving the best possible results in the current conditions. Request a free CMA to optimize your pricing strategy and discuss whether this approach might work for your property.

What's Next?

Given the dramatic swings we've seen over the past month, we'll be watching closely to see if this renewed competition sustains through April. Historical patterns suggest continued strength through spring, but with such volatile shifts, next week's Market Pulse will be particularly telling.

For neighborhood-specific stats or personalized analysis, call 301-564-3058 or email [email protected].

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit thefeldmangroup.substack.com

Competition Heats Up Again After Brief Lull

First, my apologies for the delay in getting this week's Market Monday to you. My flight home yesterday was canceled, which pushed everything back a bit.

If you caught the Weekend Market Pulse, you saw how our market temporarily cooled after the mid-March spike in activity. The data showed a clear pullback with offers per listing dropping to 1.5 (down from 2.6), only 37% of homes receiving multiple offers (down from 71%), and full inspections returning to 47% (up from just 6% during the peak).

However, I'm already seeing strong signs that buyer activity is rebounding sharply. I briefly talked to the agent who held my open house on Saturday, and as expected, it was a full house. We ended up receiving multiple above-asking offers and canceled the second open house in favor of ratifying a non-contingent cash offer well over asking. If my business is any indication, I expect to see the market swing further in sellers' favor in the coming weeks; though I would also predict a slight dip in showings the week of April 12th when MCPS lets out for Spring Break. Buyer’s take note, if the Spring continues to follow traditional seasonal patters, this might be your best opportunity until the summer slow down. Sellers, I’d caution a little patience that week.

Interestingly, two of the offers we received came with buyer-imposed deadlines, a strategy some buyers are using to retain control in an competitive environment. (Side note: I'll write a post soon on when using a deadline on a buyer's offer makes strategic sense.)

I spoke to a lender and rates are slightly up today over last week, but fairly consistent with the last couple of weeks. Despite this, the competitive landscape remains strong overall despite broader economic concerns around inflation and tariffs.

As you know, we recently added Poolesville to our market coverage. Please note that with an inventory of only 3 homes, we have a very small sample size for this area this week!

Let's explore what the current market conditions mean for your specific neighborhood below.

🏡 Bethesda, MD – Single-Family Homes

Median List Price: $2,374,000Median Price of New Listings: $1,797,500Price Per Square Foot: $472Average Days on Market: 79Median Days on Market: 28Price Decreased: 32% ⬇️Price Increased: 2% ⬆️Relisted: 10%Inventory: 98Median Rent: $4,975Market Action Index (MAI): 40 (📊 Slight Seller's Advantage)

Market Analysis: The market has been cooling off consistently as inventory rises to 98 properties and demand slackens. All four price quartiles show downward pressure, indicating this trend isn't isolated to just one segment. The cooling is evident in both price metrics and Days on Market figures (79 average/28 median). According to the Market Monitor, this represents a significant increase from earlier in the year. Despite this cooling, the MAI of 40 still indicates a seller's advantage, though less pronounced than previous months.

🏢 Bethesda, MD – Condos/Townhomes

Median List Price: $455,000Median Price of New Listings: $369,000Price Per Square Foot: $385Average Days on Market: 66Median Days on Market: 25Price Decreased: 29% ⬇️Price Increased: 0%Relisted: 18%Inventory: 38Median Rent: $2,999Market Action Index (MAI): 50 (📈 Strong Seller's Market)

Market Analysis: Despite consistent market cooling, the MAI remains at a robust 50, signaling continued seller strength. The Market Monitor suggests price weakness is visible across most segments, with all but the lowest-priced units showing negative pressure. This price plateau comes with rising inventory (now at 38 units), but demand remains significant enough to maintain seller leverage. While 29% of listings have seen price decreases, the strong MAI suggests this is more about correction than market weakness.

🏡 Chevy Chase, MD – Single-Family Homes

Median List Price: $2,747,500Median Price of New Listings: $4,450,000Price Per Square Foot: $556Average Days on Market: 123Median Days on Market: 49Price Decreased: 50% ⬇️Price Increased: 4% ⬆️Relisted: 25%Inventory: 28Median Rent: $5,750Market Action Index (MAI): 33 (📊 Slight Seller's Advantage)

Market Analysis: Half of all listings have seen price reductions - a significant indicator of market adjustment. The average property has been listed for 123 days, with half of homes on the market for at least 49 days. This extended market time, coupled with the high percentage of price decreases, suggests sellers are recalibrating expectations. The MAI of 33 still indicates a seller's advantage, but it's among the lowest in our coverage area. Pricing trends lack strong directional indication, with mixed signals across different price quartiles.

🏢 Chevy Chase, MD – Condos/Townhomes

Median List Price: $489,000Median Price of New Listings: $740,000Price Per Square Foot: $425Average Days on Market: 73Median Days on Market: 35Price Decreased: 37% ⬇️Price Increased: 0%Relisted: 6%Inventory: 51Median Rent: $2,663Market Action Index (MAI): 31 (📊 Slight Seller's Advantage)

Market Analysis: With an MAI of 31, this market is closest to the neutral threshold (30) of any area we track. The Market Monitor reveals active inventory has increased to 51 units, putting downward pressure on prices. Interestingly, while list prices have decreased, price per square foot has remained relatively flat, suggesting larger units may be driving the apparent price decline. With 37% of listings seeing price decreases and the MAI trending downward, buyers may find increasing leverage in negotiations if this trajectory continues.

🏡 Gaithersburg, MD – Single-Family Homes

Median List Price: $894,950Median Price of New Listings: $799,000Price Per Square Foot: $299Average Days on Market: 80Median Days on Market: 21Price Decreased: 35% ⬇️Price Increased: 6% ⬆️Relisted: 6%Inventory: 52Median Rent: $3,250Market Action Index (MAI): 47 (Strong Seller's Market)

Market Analysis: Despite 35% of listings seeing price reductions, the MAI remains strong at 47, indicating continued seller leverage. The Market Monitor shows pricing has been mixed across segments: the high-end (top quartile) is trending down while other segments remain relatively stable. The stark contrast between average days on market (80) and median days on market (21) indicates a split market - most properties move quickly, while a subset lingers significantly longer. Notably, the lower-priced segments show considerably shorter market times, with properties in the bottom quartile averaging just 14 days.

🏢 Gaithersburg, MD – Condos/Townhomes

Median List Price: $394,990Median Price of New Listings: $420,000Price Per Square Foot: $268Average Days on Market: 45Median Days on Market: 21Price Decreased: 28% ⬇️Price Increased: 0%Relisted: 7%Inventory: 54Median Rent: $2,187Market Action Index (MAI): 59 (Strong Seller's Market)

Market Analysis: With one of the highest MAI values in our tracking (59), this market remains decisively seller-oriented despite cooling indicators. The Market Monitor shows the lower half of the market (by price) is trending downward while higher-priced units maintain stability. Entry-level units (bottom quartile) are moving particularly quickly, with new listings in this range often under contract within a week. The recent price softening appears to be a correction rather than a fundamental shift, as the strong MAI suggests sustained demand even with increasing inventory levels.

🏡 Kensington, MD – Single-Family Homes

Median List Price: $932,499Median Price of New Listings: $929,999Price Per Square Foot: $361Average Days on Market: 56Median Days on Market: 18Price Decreased: 28% ⬇️Price Increased: 0%Relisted: 6%Inventory: 18Median Rent: $3,500Market Action Index (MAI): 51 (Strong Seller's Market)

Market Analysis: Despite price weakness across multiple segments, the MAI remains robust at 51, reflecting strong demand relative to available inventory. The Market Monitor reveals a significant disparity in market performance between price tiers: top-tier homes ($2M+) average 73 days on market, while lower-tier properties move in 21 days or less. The steady inventory level (holding at 18 homes) helps maintain seller leverage despite price adjustments. Watch for the middle price tiers, which are showing the most pronounced downward pressure, potentially signaling broader market shifts ahead.

🏡 Poolesville, MD – Single-Family Homes

Median List Price: $1,148,000Median Price of New Listings: N/APrice Per Square Foot: $413Average Days on Market: 259Median Days on Market: 238Price Decreased: 0% ⬇️Price Increased: 0%Relisted: 0%Inventory: 3Median Rent: $3,500Market Action Index (MAI): 43 (📊 Slight Seller's Advantage)

Market Analysis: With only 3 properties currently on the market, metrics for Poolesville require careful interpretation. The Market Monitor shows dramatically different conditions than other areas, with extremely long average days on market (259) and median days (238) suggesting these properties may be unique or priced above market expectations. Interestingly, the MAI has increased significantly from 36 last month to 43 this month, despite no new listings, indicating increased buyer interest or absorption of inventory. The lack of price adjustments (0% decreased, 0% increased) reflects the limited sample size rather than market stability.

🏡 Potomac, MD – Single-Family Homes

Median List Price: $2,752,500Median Price of New Listings: $2,150,000Price Per Square Foot: $372Average Days on Market: 108Median Days on Market: 39Price Decreased: 23% ⬇️Price Increased: 8% ⬆️Relisted: 3%Inventory: 40Median Rent: $4,600Market Action Index (MAI): 44 (Slight Seller's Advantage)

Market Analysis: The Market Monitor reveals a multi-tiered market with significantly different dynamics across price points. While the overall MAI has strengthened to 44 (up from 42 last month), the highest-priced properties show much weaker demand than the lower tiers. Properties in the lowest quartile ($1.5M range) average just 10 days on market, while top-tier homes ($8M+ range) linger for months. The 8% of properties seeing price increases (the highest in our tracking area) suggests strategic pricing activity, likely in the hotter segments of the market. A consistent inventory level of 40 homes has contributed to price stability.

🏡 Rockville, MD – Single-Family Homes

Median List Price: $980,000Median Price of New Listings: $873,297Price Per Square Foot: $370Average Days on Market: 35Median Days on Market: 7Price Decreased: 29% ⬇️Price Increased: 0%Relisted: 11%Inventory: 55Median Rent: $3,400Market Action Index (MAI): 59 (Strong Seller's Market)

Market Analysis: With the shortest median days on market in our tracking (just 7 days), Rockville remains one of the area's hottest markets despite cooling indicators. The Market Monitor shows prices continuing to climb even as inventory increases to 55 properties, suggesting strong fundamental demand. All four price quartiles show price strength, though the MAI has decreased from 68 to 59 month-over-month, indicating some moderation ahead. The significant gap between average (35) and median (7) days on market highlights that while most properties move extremely quickly, a subset faces extended marketing periods, creating potential negotiation opportunities for informed buyers.

🏢 Rockville, MD – Condos/Townhomes

Median List Price: $409,900Median Price of New Listings: $440,950Price Per Square Foot: $347Average Days on Market: 63Median Days on Market: 28Price Decreased: 30% ⬇️Price Increased: 7% ⬆️Relisted: 7%Inventory: 105Median Rent: $2,477Market Action Index (MAI): 40 (Slight Seller's Advantage)

Market Analysis: With inventory climbing to 105 units, this segment shows signs of stabilization after prolonged growth. The Market Monitor indicates middle-market units (in the $340K-$622K range) are significantly outperforming both the luxury ($988K+) and entry-level ($220K) segments. Despite the high inventory level, the MAI remains at 40, indicating continued seller advantage, though less pronounced than previous months. The 7% of properties seeing price increases suggests strategic repositioning in the most competitive price bands, while the 30% with decreases reflects overpriced listings adjusting to market realities.

🏡 Silver Spring, MD – Single-Family Homes

Median List Price: $696,500Median Price of New Listings: $722,000Price Per Square Foot: $333Average Days on Market: 54Median Days on Market: 21Price Decreased: 40% ⬇️Price Increased: 2% ⬆️Relisted: 6%Inventory: 90Median Rent: $3,075Market Action Index (MAI): 58 (Strong Seller's Market)

Market Analysis: Despite 40% of listings seeing price reductions, the MAI remains exceptionally strong at 58, suggesting these adjustments reflect initial overpricing rather than market weakness. The Market Monitor shows inventory holding at 90 homes, helping maintain the seller's market conditions. The top price quartile shows some softening, while lower price tiers maintain stability or slight increases. Days on market figures vary dramatically by price point, with lower-priced homes (bottom quartile) averaging just 7 days on market, while upper-tier properties take notably longer. New listing prices ($722,000) remain slightly higher than the median list price ($696,500), indicating seller confidence in the market's direction.

🏢 Silver Spring, MD – Condos/Townhomes

Median List Price: $260,000Median Price of New Listings: $375,000Price Per Square Foot: $246Average Days on Market: 74Median Days on Market: 42Price Decreased: 35% ⬇️Price Increased: 0%Relisted: 7%Inventory: 131Median Rent: $1,948Market Action Index (MAI): 43 (Slight Seller's Advantage)

Market Analysis: With 131 units available, this represents the highest inventory level in our tracking. Despite this substantial supply, the MAI has strengthened slightly to 43 (up from 42), indicating demand is keeping pace with growing inventory. The Market Monitor shows a significant disparity between average (74) and median (42) days on market, suggesting a subset of properties lingering well beyond typical expectations. The dramatic difference between median list price ($260,000) and median new listing price ($375,000) highlights a potential shift toward higher-quality or larger units entering the market, rather than overall price appreciation.

Key Takeaways

Market Overview

* Persistent Seller's Market: MAI values between 31-59 across neighborhoods indicate continued seller's advantage, though with varying degrees of strength.

* Rebounding Competition: After a brief mid-March cooling where offers per listing dropped to 1.5, we're already seeing strong signs of renewed buyer activity and competitive bidding.

* Strategic Pricing Critical: Between 28-50% of listings across neighborhoods have seen price decreases, emphasizing the importance of market-appropriate initial pricing.

* Return of Inspections: Full inspections rose sharply to 47% during the temporary cooldown, up from just 6% during the peak competition period.

By Property Type

Single-Family Homes:

* Command premium prices but typically spend longer on market (average 35-259 days)

* Rockville shows exceptional strength (MAI 59) with the quickest turnover (7 median DOM)

* Bethesda inventories continue climbing (98 homes), showing cooling despite maintained seller's advantage (MAI 40)

* Poolesville data remains limited (only 3 homes).

Condos/Townhomes:

* Continue to move more quickly (average 45-74 days) at more accessible price points

* Gaithersburg maintains strongest position (MAI 59) with median price of $394,990

* Chevy Chase condos approach market equilibrium (MAI 31) with 37% of listings seeing price decreases

* Silver Spring offers highest inventory (131 units) with competitive median price of $260,000

By Location

Luxury Markets:

* Chevy Chase ($2,747,500 median) shows significant adjustment with 50% of listings seeing price decreases

* Potomac ($2,752,500) maintains seller's advantage (MAI 44) with notable price tier disparities

* High-end properties continue spending significantly longer periods on market (108 days in Potomac, 123 in Chevy Chase)

Mid-Range Markets:

* Silver Spring single-family homes show impressive strength (MAI 58) despite 40% of listings seeing price decreases

* Rockville continues to demonstrate exceptional seller advantage (MAI 59) with just 7 median days on market

* Kensington maintains strong seller's position (MAI 51) with attractive price points (median $932,499)

Value Options:

* Silver Spring condos present strongest value opportunity with median price of $260,000

* Rockville condos offer solid investment potential with growing inventory (105 units) and healthy MAI (40)

* Gaithersburg condos continue to provide competitive entry points with robust seller advantage (MAI 59)

What This Means For You

Sellers: The market continues to favor you across most areas, but strategic pricing is more critical than ever. With up to 50% of listings showing price decreases, your initial pricing strategy significantly impacts your outcome. Even in this competitive spring market, overpricing can extend your time on market and potentially reduce your final sale price.

Buyers: While I believe the data is slightly lagging on this be prepared for increased competition this week but also look for opportunities during the upcoming MCPS Spring Break (week of April 12th), when showings typically decrease. Focus on properties with longer days on market or recent price reductions as potential negotiation opportunities.

Investors: Pay attention to the disconnect between MAI values and price adjustment patterns. Areas with strong MAI values but high percentages of price decreases (like Silver Spring single-family homes at 40%) may present value opportunities as sellers adjust expectations.

Ready to Take Action?

For Buyers: In this competitive spring market, early access to listings can make all the difference. Zenlist gives you immediate notifications for COMING SOON properties and all ACTIVE listings in real-time, often before they hit major portals. Request your free access today: https://zenlist.com/a/corey.feldman

For Sellers: Wondering how to maximize your return in this evolving market? Get a personalized, data-driven home value assessment tailored to your property's unique features and neighborhood trends: https://bit.ly/dcmetrocma

Understanding these local market dynamics is essential whether you're navigating this competitive landscape as a buyer or maximizing your return as a seller. Let's discuss how these trends impact your specific real estate goals.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit thefeldmangroup.substack.com

Welcome to the Weekend Market Pulse – Short on time? Watch the TL;DR video below.

As March wraps up, we’re seeing the market settle down after a clear mid-month spike. The second week of March brought a rush of competition with more offers per listing, sharp pricing, and a surge in waived inspections. But that intensity has eased. Buyers are gaining some ground on contingencies, and sellers are seeing slightly fewer aggressive outcomes. The market is still healthy, but it’s pacing itself now. My take is that what we’re seeing now is just the market settling back into a more typical rhythm after that March surge. If I’m right, we should see another bump in next week’s Market Pulse.

Offer Activity Backed Off

• The average number of offers dropped to 1.5, down from 2.6 at the peak.

• Only 37% of homes received multiple offers, compared to 71% last week and 78% earlier in the month.

After a mid-month spike in bidding intensity, this week’s numbers show a clear pullback. Multiple offer frequency and average offers both dropped. Last week wasn’t a decline so much as a concentrated burst; fewer homes got action, but when they did, it was fierce.

Pricing Still Strong, But Trending Downward

• 53% of homes sold above list, down from 65% last week.

• At-list sales held at 21%, while below-list sales rose to 26%, up from just 6% during the peak week.

Sellers are still in control, but the urgency buyers showed earlier this month is softening. Overpricing is more likely to result in negotiation or slower activity.

Inspections Are Back

• Full inspections rose sharply to 47%, up from just 6% during the peak.

• Waived inspections dropped to 21%, and pass/fail fell to 16%.

• Pre-inspections held steady at 16%.

This is one of the clearest signs of a shifting dynamic. Demand pulled back this week, likely a short-term dip as buyer activity catches up to rising inventory. That cooling gave buyers room to include full inspections again. It’s still a seller’s market, but we’re seeing signs of buyers getting a bit more leverage around terms. That said…

Anecdotal Signs of Buyer Energy Returning

While the data shows a cooling trend, I’m seeing signs of an increase in real-time buyer activity. I have two new listings: an apartment in Bethesda that is currently in coming soon and going active next week, and a townhouse in North Potomac that went live today. Both were in coming soon status for the past couple of weeks. Over the last few days, there has been a noticeable spike in agent calls and buyer inquiries.

We have two open houses scheduled this weekend for the North Potomac property, and based on the call volume so far, I expect them to be well attended. This is anecdotal, but it suggests buyers are still engaged and watching closely for the right homes to come on the market and we are potentially seeing a pickup in activity.

So What’s Driving the Shift?

Rates haven’t changed much. Most lenders are still quoting in the mid-6 percent range, consistent with earlier this month. With no major economic news or rate movement this week, the pullback appears to be market-driven. It is likely a mix of rising inventory, seasonal flow, and buyers taking a breath after a fast start to March. Next week’s market pulse will be telling.

Quick Take for Buyers

You may have more room to negotiate this week, especially around inspections. Multiple offers are still happening, but they are less common and less aggressive. Stay prepared!

It is still a sellers market so if you wait until you fall in love at an open house, it’s probably too late. Get pre-approved now. As a former lender, I can connect you with a trusted local lender who will go the extra mile for you. And skip the challenges with Zillow. Use my ZenList link for free, real-time access to up-to-the-minute listings: https://zenlist.com/a/corey.feldman

Quick Take for Sellers

The market still favors you, but it’s not as intense as it was. Pricing matters! The strongest results are still going to well-prepped, correctly priced listings that meet the market where it is. Request a free CMA here: https://bit.ly/dcmetrocma

Want More Insight?

For neighborhood-specific stats or a data-backed pricing plan, call 301-564-3058 or email [email protected].

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit thefeldmangroup.substack.com

Montgomery County Executive Marc Elrich has proposed a 3.4% property tax increase as part of his $7.7 billion fiscal year 2026 operating budget. At its core, this proposed increase represents a critical investment in the county's educational system while raising important questions about tax policy, fiscal responsibility, and who will bear the burden of these costs.

Author's Disclosure

Before we dive deeper into this issue, I believe in transparency about my own perspective. I have a background in education and worked briefly as a Montgomery County Public Schools teacher. Education holds an extremely high value in my life, and as a parent of four children, two of whom currently attend MCPS, I have both a professional and deeply personal stake in our public education system. While I've attempted to present all viewpoints factually in this article, readers should be aware that my experiences naturally shape my understanding of educational funding issues.

What's Being Proposed

On March 14, 2025, Elrich released his recommended budget, which includes a 3.5 cent increase in the education supplemental property tax. This adjustment would:

* Generate approximately $56.3 million specifically for Montgomery County Public Schools (MCPS)

* Bring the total property tax rate to $1.0605 per $100 of assessed value (from the current $1.0255)

* Support a record $250 million increase in local funding for the school system

* Help fully fund MCPS's $3.65 billion budget request for the upcoming fiscal year

The Educational Investment: Why Schools Matter

The Case for Quality Education

Elrich and education advocates have presented several arguments for the tax increase centered on educational quality:

"The most valuable asset this county has is its schools. You cannot afford to lose that," Elrich emphasized, framing the investment as essential to maintaining Montgomery County's reputation for educational excellence.

The Montgomery County Education Association (MCEA) praised the budget for recognizing "the real needs that students and families have in our school district, while remaining cognizant of the fiscal challenges that we continue to face," according to MCEA President David Stein.

The proposed funding would support negotiated compensation agreements for teachers, increase the number of special education teachers and paraeducators, and enhance school security.

Schools as Economic Drivers

From a real estate perspective, the relationship between school funding and property values is direct and powerful:

Montgomery County's reputation for excellent public schools is consistently one of the top reasons homebuyers choose to purchase in the county. Families routinely pay significant premiums for homes within the boundaries of highly-rated school districts.

While property tax increases create immediate costs for homeowners, the maintenance of high-quality schools creates long-term property value appreciation that typically exceeds those costs. Conversely, schools that decline in quality due to underfunding can lead to diminished property values across entire neighborhoods.

For many families, buying a home in a strong school district represents not just educational opportunities for their children but a strategic wealth-building decision. The price premium for homes in top school districts typically persists through market fluctuations and economic cycles.

Montgomery County's ability to attract high-income professionals, tech companies, and other businesses depends significantly on maintaining its educational excellence. As neighboring jurisdictions compete for these residents and businesses, school quality becomes an increasingly important differentiator.

Understanding the Impact on Homeowners

Enhanced Tax Relief: Protecting Lower-Valued Homes

A key component of Elrich's proposal is an expansion of tax relief measures designed to offset the impact of the increase for many homeowners:

* Increased Property Tax Credit: The proposal would increase the standard Property Tax Credit (also called the Income Tax Offset Credit) by 25% from $692 to $865 for qualifying owner-occupied homes.

* Full Protection for Lower-Valued Homes: This enhanced credit would fully offset the tax increase for homes assessed at $495,000 or less, meaning many homeowners would effectively see no increase in their tax bills.

* Progressive Approach: Elrich described this as "a progressive approach to taxation, shielding homeowners with lower assessed home properties while ensuring we have the revenue needed to keep our schools strong."

Impact Across Different Homeowner Groups

The proposed tax increase would affect Montgomery County's diverse homeowners in varying ways:

For homes valued above $495,000: The tax impact scales proportionally with home value:

* For a home assessed at the median value of $580,000: approximately $200 per year or $17 per month

* For a home assessed at $750,000: approximately $260 per year or $22 per month

* For a home assessed at $1 million: approximately $350 per year or $29 per month

* For a home assessed at $1.5 million: approximately $525 per year or $44 per month

* For a home assessed at $2 million: approximately $700 per year or $58 per month

* For a home assessed at $2.5 million: approximately $875 per year or $73 per month

Given that Montgomery County has numerous luxury neighborhoods and high-value properties, with approximately 40% of homes valued above $750,000, a substantial portion of homeowners would experience tax increases toward the higher end of this scale. For neighborhoods like Potomac, Bethesda, and Chevy Chase, where multi-million dollar homes are common, residents would contribute significantly more toward education funding under this proposal.

For lower and middle-income homeowners: Montgomery County offers several targeted tax relief programs that would shield many vulnerable residents from the full impact of the increase:

* The Homeowners' Property Tax Credit program is available to households with incomes under $60,000, effectively limiting property taxes to a percentage of household income. Importantly, this program calculates the relief using a maximum assessment of $300,000, even if the actual home is worth more.

* A 20% property tax credit is available for homeowners age 65+ who either have owned their home for at least 40 consecutive years or are retired from the armed forces. This credit lasts for 7 consecutive years.

* Montgomery County offers an additional supplemental credit that, when combined with the senior credit, averaged $1,214 in tax relief last year and benefited over 4,000 residents.

* All owner-occupied homes receive a $692 Income Tax Offset Credit (proposed to increase to $860) if they have a Homestead Property Tax Credit application on file.

These targeted programs mean that the tax increase would have the greatest impact on middle and higher-income households that don't qualify for these income-based relief programs.

Historical Context: A Pattern of Increases

This proposed tax increase doesn't exist in isolation - it comes less than two years after Montgomery County's last significant property tax hike:

* In May 2023, the Montgomery County Council approved a 4.7% property tax increase for fiscal year 2024, raising the rate to approximately $1.02 per $100 of assessed value.

* County Executive Elrich had initially proposed a 10% property tax increase in 2023, but the Council ultimately approved the smaller 4.7% increase. This parallels the current situation where Elrich is again proposing a tax increase primarily to fund education.

* For fiscal year 2025 (the current budget year), the tax rate remained static at $1.0255 per $100, though property tax revenues still increased due to rising property values, with the average homeowner seeing a $26 monthly increase from higher assessments.

* If approved, this would be the second property tax rate increase in three fiscal years.

Broader Economic and Real Estate Considerations

Market Context and Housing Affordability

The proposed tax increase comes at a sensitive time for the local real estate market:

* Rising Property Values: Maryland's statewide property values have already increased by approximately 20% since the last assessment cycle, with Montgomery County seeing substantial growth in home values.

* Affordability Concerns: The combination of higher property values, increased assessments, and now potentially higher tax rates adds another layer of cost to homeownership in a county that already faces affordability challenges.

* Competitive Positioning: While Montgomery County's tax rate would remain lower than some neighboring counties even after the increase, the gap would narrow slightly, potentially affecting the county's ability to attract new residents and businesses.

External Pressures and Fiscal Responsibility

The executive pointed to both federal tax cuts under President Trump and Maryland's $3 billion state budget shortfall as creating financial pressures that require local action. "Decreases in taxes are being accompanied by shifts in responsibility," Elrich noted.

Elrich argues that even with the increase, Montgomery County's property tax rate would remain lower than neighboring jurisdictions like Howard and Frederick counties.

Opposition and Concerns

While the case for educational investment through a tax increase has its merits, there is significant opposition to the proposal, most notably from County Council member Andrew Friedson. On March 14, 2025, Friedson released a statement outlining his opposition:

"Over the last seven years, Montgomery County families have been regularly hit with higher tax bills and have seen their property tax assessments increase by approximately 29 to 40 percent," Friedson stated. "The County is already generating more revenue from County taxpayers -- it's our responsibility to fund schools, public safety, transportation, parks, and libraries, without adding additional housing costs on residents."

Context on Assessment Increases: County data confirms that property assessments have indeed risen substantially over the past seven years. However, it's important to note that assessment increases reflect rising market values rather than county policy decisions. These increases occur regardless of tax rate changes and benefit homeowners through increased equity while simultaneously generating more tax revenue for the county even without rate increases.

On Current Revenue Generation: Friedson correctly notes that the county is already receiving more tax revenue due to rising assessments. The 2025 fiscal year budget acknowledged this reality, keeping tax rates flat while noting that "property tax revenues are estimated to increase in the FY25 approved operating budget due to rising property values."

Friedson also highlights economic pressures on residents: "Right now, too many residents are struggling to keep up with rising costs. Our region and state face unprecedented fiscal instability, even before Elon Musk and the Trump administration's newest assault on federal workers who make up such a large share of our local economy."

Federal Workforce Context: Montgomery County does have a high concentration of federal workers who could be affected by federal budget changes. Given that the median home value in Montgomery County is $580,000, and popular areas for federal employees like Bethesda, Silver Spring, and Rockville typically have home values well above $495,000, most federal workers would likely be subject to the tax increase rather than protected from it. This adds credibility to Friedson's concern about the potential compounding effect of both federal workforce uncertainty and local tax increases on the same households.

Alternative Approach: Friedson proposes a different vision: "I believe our future is brighter if we keep affordability for our families at the forefront of our decisions: by reducing housing costs, doubling down on economic growth to fund our community's priorities, and by being more effective and efficient with the tax dollars we already have."

While economic growth is certainly desirable, education advocates note that it typically occurs over the long term, while school funding needs are immediate. The question becomes whether current revenues are sufficient to address specific educational needs without the proposed increase.

The Path Forward

The County Council will now review the proposed budget over the next two months. Public hearings are scheduled for April 7 and 8, with opportunities for residents to testify both in-person and virtually.

Council President Kate Stewart has encouraged county residents to share their thoughts with council members during this period. The Council must adopt the new County budget in May, and it will go into effect on July 1.

The Bigger Picture

This debate reflects broader questions facing many communities:

* How do we balance essential investments in education against taxpayer capacity?

* What is the appropriate division of fiscal responsibility between federal, state, and local governments?

* How can we maintain educational excellence while ensuring housing remains affordable for diverse income levels?

* What is the appropriate balance between targeted tax relief programs and overall tax rates?

For Montgomery County residents concerned about either school funding or tax policy, now is the critical time to engage with your elected officials as they deliberate on this consequential budget.

My Perspective

Ultimately, I support this increase as I see it as an investment in education that pays off long-term. In my experience, the value residents receive through increased home values often offsets the educational investment financially, while strengthening our community for children. I've stated my biases early in this article but have tried to present a fair accounting of all perspectives. Whether you agree with my position or not, I encourage you to reach out to your representative to have your voice heard; that's the beauty of democracy.

What do you think about the proposed tax increase? Is it necessary to maintain quality schools, or should the county find other ways to meet educational needs? Share your thoughts in the comments.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit thefeldmangroup.substack.com

Hot Spring Market Persists as Fed Navigates Economic Pressures

If you caught the Weekend Market Pulse on Friday, you've already seen how our spring market is performing with strong competition across most price points. This week's Federal Reserve meeting brought a notable shift in outlook, with officials signaling fewer potential rate cuts this year than previously anticipated. Recent tariff announcements and persistent inflation are creating economic headwinds that have altered the Fed's trajectory, potentially keeping mortgage rates higher for longer than buyers had hoped.

The competitive landscape continues with 71% of properties receiving multiple offers and an average of 2.6 offers per property. This is further reflected in both pricing and inspection practices. With 65% of homes selling above list price, buyers are not only paying premiums but also making significant concessions on inspections. Pass/fail inspections now dominate at 41% of transactions while full inspections represent only 6% of deals - clear evidence of buyers adapting to competitive conditions.

This week we've added Poolesville to our market coverage following reader requests. If you're interested in seeing market intelligence for an area not currently included in our reports, please let us know.

Let's explore what the current market conditions mean for your specific neighborhood below.

🏡 Bethesda, MD - Single-Family Homes

Median List Price: $2,397,000

Median Price of New Listings: $1,567,000

Price Per Square Foot: $475

Average Days on Market: 81

Median Days on Market: 28

Price Decreased: 24% ⬇️

Price Increased: 5% ⬆️

Relisted: 14%

Inventory: 86

Median Rent: $4,800

Market Action Index (MAI): 40 (📊 Slight Seller’s Advantage)

Market Analysis:

The market has been cooling over time and prices have recently flattened. Despite the consistent decrease in Market Action Index (MAI), we’re in a Seller’s Market (where significant demand leaves little inventory available). If the MAI begins to climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for downward pressure on prices.

🏢 Bethesda, MD - Condos/Townhomes

Median List Price: $434,950

Median Price of New Listings: $381,000

Price Per Square Foot: $383

Average Days on Market: 51

Median Days on Market: 14

Price Decreased: 15% ⬇️

Price Increased: 0%

Relisted: 13%

Inventory: 40

Median Rent: $3,015

Market Action Index (MAI): 49 (📈 Strong Seller’s Market)

Market Analysis:

The market has been cooling over time and prices plateaued for a while. Despite the consistent decrease in MAI, we’re in the Seller’s zone. Watch for changes in MAI. If the MAI resumes its climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for downward pressure on prices.

🏡 Chevy Chase, MD - Single-Family Homes

Median List Price: $2,700,000

Median Price of New Listings: $1,395,000

Price Per Square Foot: $553

Average Days on Market: 108

Median Days on Market: 42

Price Decreased: 28% ⬇️

Price Increased: 7% ⬆️

Relisted: 17%

Inventory: 29

Median Rent: $5,200

Market Action Index (MAI): 33 (📊 Slight Seller’s Advantage)

Market Analysis:

The market has been cooling over time and prices have recently flattened. Despite the consistent decrease in MAI, we’re in a Seller’s Market (where significant demand leaves little inventory available). If the MAI begins to climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for downward pressure on prices.

🏢 Chevy Chase, MD - Condos/Townhomes

Median List Price: $518,500

Median Price of New Listings: $450,000

Price Per Square Foot: $476

Average Days on Market: 78

Median Days on Market: 46

Price Decreased: 35% ⬇️

Price Increased: 0%

Relisted: 7%

Inventory: 46

Median Rent: $2,715

Market Action Index (MAI): 36 (📊 Slight Seller’s Advantage)

Market Analysis:

The market has been cooling off a bit in recent weeks, as more homes are available and demand is less. We’re already seeing prices move lower as a result, though the market is still in the Seller’s zone. Expect this trend to continue especially if the index falls to the Buyer’s zone. Watch for a persistent up-turn in Market Action to signal prices rising again.

🏡 Gaithersburg, MD - Single-Family Homes

Median List Price: $877,000

Median Price of New Listings: $822,500

Price Per Square Foot: $289

Average Days on Market: 80

Median Days on Market: 21

Price Decreased: 28% ⬇️

Price Increased: 7% ⬆️

Relisted: 7%

Inventory: 46

Median Rent: $3,175

Market Action Index (MAI): 50 (📈 Strong Seller’s Market)

Market Analysis:

In the last few weeks the market has achieved a relative stasis point in terms of sales to inventory. However, inventory is sufficiently low to keep us in the Seller’s Market zone so watch changes in the MAI. If the market heats up, prices are likely to resume an upward climb.

🏢 Gaithersburg, MD - Condos/Townhomes

Median List Price: $349,900

Median Price of New Listings: $402,000

Price Per Square Foot: $263

Average Days on Market: 46

Median Days on Market: 14

Price Decreased: 27% ⬇️

Price Increased: 4% ⬆️

Relisted: 8%

Inventory: 49

Median Rent: $2,110

Market Action Index (MAI): 64 (Strong Seller’s Market)

Market Analysis:

The market has been cooling off a bit in recent weeks, as more homes are available and demand is less. We’re already seeing prices move lower as a result, though the market is still in the Seller’s zone. Expect this trend to continue especially if the index falls to the Buyer’s zone. Watch for a persistent up-turn in Market Action to signal prices rising again.

🏡 Germantown, MD - Single-Family Homes

Median List Price: $774,949

Median Price of New Listings: $824,450

Price Per Square Foot: $257

Average Days on Market: 41

Median Days on Market: 18

Price Decreased: 18% ⬇️

Price Increased: 14% ⬆️

Relisted: 0%

Inventory: 22

Median Rent: $2,550

Market Action Index (MAI): 50 (Strong Seller’s Market)

Market Analysis:

The market has been cooling over time and prices have recently flattened. Despite the consistent decrease in MAI, we’re in a Seller’s Market (where significant demand leaves little inventory available). If the MAI begins to climb, prices will likely follow suit.

🏢 Germantown, MD - Condos/Townhomes

Median List Price: $310,000

Median Price of New Listings: $310,000

Price Per Square Foot: $275

Average Days on Market: 37

Median Days on Market: 21

Price Decreased: 34% ⬇️

Price Increased: 0%

Relisted: 6%

Inventory: 35

Median Rent: $1,964

Market Action Index (MAI): 65 (Strong Seller’s Market)

Market Analysis:

In the last few weeks the market has achieved a relative stasis point in terms of sales to inventory. However, inventory is sufficiently low to keep us in the Seller’s Market zone so watch changes in the MAI. If the market heats up, prices are likely to resume an upward climb.

🏡 Kensington, MD - Single-Family Homes

Median List Price: $929,900

Median Price of New Listings: $2,498,000

Price Per Square Foot: $372

Average Days on Market: 83

Median Days on Market: 70

Price Decreased: 45% ⬇️

Price Increased: 0%

Relisted: 9%

Inventory: 11

Median Rent: $3,500

Market Action Index (MAI): 56 (Strong Seller’s Market)

Market Analysis:

Home sales have been exceeding new inventory for several weeks. However, prices have not yet stopped falling. Since the market is already in the Seller’s zone, expect prices to level off very soon. Should the sales trend continue, prices could climb from there.

🏡 Potomac, MD - Single-Family Homes

Median List Price: $2,472,250

Median Price of New Listings: $1,895,000

Price Per Square Foot: $373

Average Days on Market: 105

Median Days on Market: 42

Price Decreased: 24% ⬇️

Price Increased: 8% ⬆️

Relisted: 5%

Inventory: 38

Median Rent: $4,500

Market Action Index (MAI): 44 (Slight Seller’s Advantage)

Market Analysis:

While the Market Action Index shows some strengthening in the last few weeks, prices have settled in a bit of a plateau. We are currently in a Seller’s Market so prices will likely resume their climb should this trend persist.

🏡 Poolesville, MD - Single-Family Homes

Median List Price: $1,548,175

Median Price of New Listings: $0

Price Per Square Foot: $400

Average Days on Market: 200

Median Days on Market: 231

Price Decreased: 0% ⬇️

Price Increased: 25% ⬆️

Relisted: 25%

Inventory: 4

Median Rent: $3,500

Market Action Index (MAI): 40 (📊 Slight Seller’s Advantage)

Market Analysis:

Market conditions have been consistently cooling in the past several weeks. Because we’re still in the Seller’s zone, prices have not yet begun to drop. It may take a few more weeks of slack demand for prices to reflect and begin to fall. Expect prices to fall if the index persistently falls to the Buyer’s zone.

🏡 Rockville, MD - Single-Family Homes

Median List Price: $850,000

Median Price of New Listings: $750,000

Price Per Square Foot: $361

Average Days on Market: 51

Median Days on Market: 14

Price Decreased: 28% ⬇️

Price Increased: 0%

Relisted: 15%

Inventory: 40

Median Rent: $3,400

Market Action Index (MAI): 62 (Strong Seller’s Market)

Market Analysis:

In the last few weeks the market has achieved a relative stasis point in terms of sales to inventory. However, inventory is sufficiently low to keep us in the Seller’s Market zone so watch changes in the MAI. If the market heats up, prices are likely to resume an upward climb.

🏢 Rockville, MD - Condos/Townhomes

Median List Price: $442,000

Median Price of New Listings: $635,000

Price Per Square Foot: $352

Average Days on Market: 68

Median Days on Market: 35

Price Decreased: 29% ⬇️

Price Increased: 10% ⬆️

Relisted: 9%

Inventory: 98

Median Rent: $2,467

Market Action Index (MAI): 40 (Slight Seller’s Advantage)

Market Analysis:

In the last few weeks the market has achieved a relative stasis point in terms of sales to inventory. However, inventory is sufficiently low to keep us in the Seller’s Market zone so watch changes in the MAI. If the market heats up, prices are likely to resume an upward climb.

🏡 Silver Spring, MD - Single-Family Homes

Median List Price: $660,000

Median Price of New Listings: $624,900

Price Per Square Foot: $320

Average Days on Market: 68

Median Days on Market: 28

Price Decreased: 34% ⬇️

Price Increased: 5% ⬆️

Relisted: 10%

Inventory: 61

Median Rent: $3,200

Market Action Index (MAI): 60 (📈 Strong Seller’s Market)

Market Analysis:

In the last few weeks the market has achieved a relative stasis point in terms of sales to inventory. However, inventory is sufficiently low to keep us in the Seller’s Market zone so watch changes in the MAI. If the market heats up, prices are likely to resume an upward climb.

🏢 Silver Spring, MD - Condos/Townhomes

Median List Price: $297,450

Median Price of New Listings: $319,000

Price Per Square Foot: $257

Average Days on Market: 69

Median Days on Market: 28

Price Decreased: 28% ⬇️

Price Increased: 0%

Relisted: 7%

Inventory: 148

Median Rent: $1,968

Market Action Index (MAI): 41 (Slight Seller’s Advantage)

Market Analysis:

The market has been cooling over time and prices have recently flattened. Despite the consistent decrease in Market Action Index (MAI), we’re in a Seller’s Market (where significant demand leaves little inventory available). If the MAI begins to climb, prices will likely follow suit. If the MAI drops consistently or falls into the Buyer’s zone, watch for downward pressure on prices.

Key Takeaways

Market Overview

* Persistent Seller's Market: MAI values between 33-65 across neighborhoods indicate continued seller's advantage, though with varying degrees of strength.

* Intense Competition: 71% of properties receiving multiple offers (average 2.6 offers per property) with 65% selling above list price.

* Inspection Concessions: Full inspections now represent only 6% of transactions while pass/fail inspections dominate at 41%, reflecting buyer adaptation to competitive conditions.

* Price Adjustment Patterns: 15-45% of listings across neighborhoods have seen price decreases, emphasizing the critical importance of strategic initial pricing

By Property Type

Single-Family Homes:

* Command premium prices but typically spend longer on market (average 41-200 days)

* Bethesda remains competitive (MAI 40) despite high inventory (86 homes)

* Rockville shows exceptional strength (MAI 62) with quick turnover (14 median DOM)

* New addition Poolesville shows limited inventory (4 homes) with significant market time (231 median DOM)

Condos/Townhomes:

* Move more quickly (average 37-78 days) at more accessible price points

* Germantown maintains strongest position (MAI 65) with median price of $310,000

* Gaithersburg demonstrates robust seller's advantage (MAI 64) despite 27% of listings seeing price decreases

* Silver Spring offers highest inventory (148 units) with competitive median price of $297,450

By Location

Luxury Markets:

* Chevy Chase ($2,700,000 median) and Potomac ($2,472,250) maintain seller's advantage despite longer market times

* Bethesda single-family homes show slight cooling while maintaining solid position (MAI 40)

* High-end properties spending significantly longer periods on market (105 days in Potomac, 108 in Chevy Chase)

Mid-Range Markets:

* Silver Spring single-family homes show impressive strength (MAI 60) with median list price of $660,000

* Rockville continues to demonstrate exceptional seller advantage (MAI 62) with rapid turnover

Value Options:

* Silver Spring and Germantown condos present strongest value opportunities with median prices under $310,000

* Gaithersburg condos offer compelling investment potential with strong MAI (64) and median price of $349,900

What This Means For You

Sellers: The market continues to favor you across most areas, but strategic pricing is more critical than ever. With 15-45% of listings showing price decreases, your initial pricing strategy significantly impacts your outcome. Even in today's competitive environment, overpricing can extend your time on market and potentially reduce your final sale price.

Buyers: Competition remains fierce with 71% of properties receiving multiple offers. Be prepared to make competitive offers and consider inspection concessions, as only 6% of transactions now include full inspections. Focus on properties with longer days on market or recent price reductions as potential negotiation opportunities.

Investors: Pay attention to the disconnect between MAI values and price adjustment patterns. Areas with strong MAI values but high percentages of price decreases (like Kensington at 45%) may present value opportunities as sellers adjust expectations.

Looking Ahead

The spring market continues to show strength despite economic headwinds from the Federal Reserve's shift toward fewer potential rate cuts and persistent inflation concerns. The dominance of pass/fail inspections, prevalence of above-list sales, and consistent multiple-offer scenarios confirm we remain firmly in seller's territory. However, the significant percentage of price reductions across neighborhoods suggests a market finding its equilibrium, with properly priced properties outperforming those with aspirational pricing.

Ready to Take Action?

For Buyers: In this competitive spring market, early access to listings can make all the difference. Zenlist gives you immediate notifications for COMING SOON properties and all ACTIVE listings in real-time, often before they hit major portals. Request your free access today: https://zenlist.com/a/corey.feldman

For Sellers: Wondering how to maximize your return in this evolving market? Get a personalized, data-driven home value assessment tailored to your property's unique features and neighborhood trends: https://bit.ly/dcmetrocma

Understanding these local market dynamics is essential whether you're navigating this competitive landscape as a buyer or maximizing your return as a seller. Let's discuss how these trends impact your specific real estate goals.

Call 301-564-3058 or email [email protected] to schedule your personalized market consultation today.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit thefeldmangroup.substack.com

The Federal Reserve kept interest rates unchanged, maintaining the benchmark interest rate in the 4.25% to 4.5% range as officials continue to assess both inflation trends and the potential economic impact of President Trump's policy agenda. Fed Chair Jerome Powell acknowledged the "high level of uncertainty" in the economy, citing tariffs, immigration policies, and federal workforce changes as factors they're closely monitoring.

While the Fed still projects two rate cuts for 2025, their latest economic forecasts reveal growing caution. Eight officials are now predicting one or no cuts this year, up from just four in December. This hesitation makes sense given today's complex economic picture. We're seeing solid employment figures (which reduces pressure for rate cuts) alongside slowing consumer spending and rising inflation expectations.

What This Means for Real Estate

Our local market is heating up, and it's happening even with the Fed staying cautious. Last week I noted that mortgage rates had dropped into the mid 6% range. I checked in with three lenders just this morning to get the latest: rates are basically holding steady from last week. One lender saw a slight uptick, another saw a small decrease, but they're all in the same general range.

Our latest weekly data reveals significant shifts across key metrics:

What stands out most in this data is the market's intensifying competition:

* While fewer properties received multiple offers this week, those properties attracted significantly more competing bids (+30%)

* Sellers are gaining pricing power, with more homes selling above list price (+7%) and at list price (+12%), while far fewer sell below list (-54%)

* Buyers are making inspection concessions to win properties, with full inspections plummeting (-85%) and pass/fail options surging (+356%)

The Fed's comments about consumer sentiment are particularly interesting. Powell noted that despite negative economic sentiment in surveys, Americans are still making major purchases. This is exactly what we're seeing in real estate, where buyer activity is intensifying despite broader economic concerns.

As we continue through spring, I expect the Fed's decisions to play a crucial role in market dynamics. Their caution about potential "stagflation" (sluggish growth with accelerating inflation) bears watching, but for now, the residential market appears to be favoring sellers with increasingly competitive conditions.

Quick Take for Buyers: The competition is clearly intensifying. With full inspections down 85% and multiple offers increasing to 2.6 per property, preparation is key. If you're serious about buying, be ready with financing in place and consider whether you can be flexible on inspection contingencies while still protecting your interests.

For Buyers Ready to Take Action: Want to stay ahead of the competition in this evolving market? Zenlist gives you immediate access to COMING SOON properties and all ACTIVE listings in real-time, often before they hit the major portals. Request your free access here: https://zenlist.com/a/corey.feldman

Quick Take For Sellers: The market continues to strengthen in your favor with 65% of homes selling above list and just 6% below list. To maximize your advantage, proper pricing remains critical, even in this competitive environment, the right pricing strategy is essential to attract multiple offers and achieve the best possible outcome.

For Sellers Ready to Take Action: Curious how to hit that pricing "sweet spot" in today's market? Get a free, data-driven home value assessment customized to your property's unique features: https://bit.ly/dcmetrocma

The spring market is finding its rhythm, and understanding these local trends is crucial whether you're looking to buy in this competitive landscape or maximize your return when selling.

Call 301-564-3058 or email [email protected] to discuss how these market shifts might impact your specific real estate plans.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit thefeldmangroup.substack.com

Welcome to the Weekend Market Pulse - Short on time? Watch the TL/DR video!

As we move deeper into March, we're seeing some interesting shifts in the market, likely influenced by the recent easing of interest rates.

The second week of March brings notable changes from last week's data. Multiple offer activity has increased to 78% of contracts (up from 57% last week), though the average number of offers per property dipped slightly to 2.0 (from 2.3).

The pricing landscape is showing more balance than last week:

* 61% of homes sold above list (down from 86% last week)

* 26% at list price (up from 14%)

* 13% below list (up from 0%)

Inspection approaches show the diversity in our market:

* 26% waiving inspections (down from 36% last week)

* 9% using pass/fail (down from 21%)

* 26% choosing pre-inspections (up from 14%)

* 39% opting for full inspections (up from 29%)

What's happening? The market is finding more equilibrium as we move deeper into March. While competition remains strong (78% multiple offers), we're seeing a return to more traditional inspection practices, with full inspections now the most common approach. The pricing metrics are also normalizing, with below-list sales returning after being absent last week.

I spoke with a couple of my trusted lenders this week and we've seen some movement with interest rates dropping into the mid 6's. This additional buyer power is likely causing the softening from last week, giving buyers a bit more confidence and leverage in negotiations.

Quick Take for Buyers: The trend toward more inspection protection is good news. With 39% of transactions including full inspections, buyers appear to be gaining some leverage despite the competitive environment. If you've been waiting on the sidelines, this rate improvement might be your opportunity.

For Sellers: The market remains in your favor with 61% of homes selling above list. However, the return of below-list sales (13%) suggests proper pricing is critical as the market continues to normalize.

I was doing a CMA for a home in Potomac yesterday and noticed one property that was shooting for the moon - about $125K over what I would have recommended for pricing. They ended up with days on market about 10 longer than the neighborhood average and sold for $50K under what I would have expected for that home. This illustrates how even in hot areas, overpricing can lead to leaving money on the table.

The changes we anticipated are materializing - we're seeing more balanced conditions emerge as spring inventory increases. I'll continue tracking these trends closely as we move through the traditionally active spring market.

Want More Detail? For neighborhood-specific insights or personalized analysis:

* Call: 301-564-3058

* Email: [email protected]

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit thefeldmangroup.substack.com

Quick reminder - Daylight Savings Time begins this Sunday! Don't forget to spring forward and set your clocks ahead one hour. Enjoy that extra evening daylight!

The first week of March shows a significant shift in our market dynamics compared to February. The data reveals an increasingly competitive environment with some dramatic changes.

Multiple offer activity remains steady at 57% of contracts (down from 64% last week), with properties still averaging 2.3 offers each. But the real story is in the pricing outcomes:

* 86% of homes sold above list (up dramatically from 57% last week)

* 14% at list price (unchanged from last week)

* 0% below list (down from 29% last week)

The inspection approaches show buyers maintaining due diligence while adapting to the competitive market:

* 36% waiving inspections (down from 43% last week)

* 21% using pass/fail (up from 7% last week)

* 14% choosing pre-inspections (down from 21%)

* 29% opting for full inspections (unchanged)

What's happening? Early March is showing a remarkable surge in above-list sales, with not a single property going below list price this week. What's interesting is that despite this intensely competitive environment, the majority of buyers (64%) are still conducting some form of inspection. Buyers are finding a blended approach - maintaining due diligence while remaining competitive through various inspection strategies rather than simply waiving.

Quick Take for Buyers: The market has intensified significantly, with virtually all properties selling at or above list. Consider which inspection approach might work best for your situation, as there are multiple strategies being successfully employed.

For Sellers: This is an exceptionally strong moment. With 86% of properties selling above list and none below, you're entering a very favorable spring market. Be prepared for buyers who still want inspections, as most are incorporating some form of due diligence.

It will be fascinating to watch if this strong pricing trend continues through March. I expect we'll see more normal spring volume returning in the coming weeks, which may bring some balance back to the market. I'll be tracking these dynamics closely as inventory levels shift.

Want More Detail? For neighborhood-specific insights or personalized analysis:

* Call: 301-564-3058

* Email: [email protected]

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit thefeldmangroup.substack.com

Even in a market where sellers have the advantage, not all home updates are created equal. Some repairs and renovations can boost your home’s value and help it sell faster, but others might not pay off—and could even cut into your bottom line.

So, how do you know which updates are worth it? Let’s break it down.

Working with a real estate professional gives you a significant advantage when preparing to sell. An experienced agent can help you identify which updates will actually increase your home's value and which ones might look impressive but won't improve your return.

Here's what the numbers tell us about return on investment in 2025:

✅ Garage door replacement tops the list with an incredible 194% return!

✅ Steel door replacement follows closely at 188% ROI.

✅ Adding manufactured stone veneer delivers 153% ROI.

But what about the projects that DON'T pay off?

❌ Major kitchen remodels and high-end renovations might make your home more appealing, but they rarely recoup their full cost.

❌ Luxury bathroom upgrades look beautiful but typically return only 74% of what you spend.

❌ Extensive landscaping might wow buyers initially, but won't significantly impact your home's resale value.

While these projects might help your home sell faster, they can also cut into your profits. The key is balancing appeal with profitability.

With spring just around the corner, how do you decide what's actually worth doing before listing your home?

That's where leaning on an agent makes all the difference. I can help you:

📍 Identify exactly what buyers in your area want to see

⭐ Pinpoint quick wins that will have the biggest impact

💰 Determine which repairs truly justify their costs—and which ones to skip

The right home updates can mean a faster, more profitable sale. With more homes for sale and buyers becoming increasingly selective, making strategic improvements before listing isn't just helpful—it's essential.

If you're thinking about selling, let's talk. A little strategy now can mean thousands more in your pocket at closing.

Want a free consultation? Scan the QR code, visit https://bit.ly/cma4reno, or call or text our client relations team at (301) 246-0102 to schedule a consultation today!

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit thefeldmangroup.substack.com

Welcome to the Weekend Market Pulse - Short on time? Watch the TL/DR video!

As February ends, this week's numbers highlight an interesting shift in buyer behavior while still showing neighborhood variability.

While multiple offer activity remains strong (64% of contracts), the inspection data tells a particularly revealing story about buyer strategy. We're seeing a significant move toward more due diligence, but in ways that still accommodate sellers:

* 43% waiving inspections (up slightly from 38%)

* 21% choosing pre-inspections (up significantly)

* Only 7% using pass/fail (down dramatically from 31%)

* 29% opting for full inspections (relatively stable)

What's happening? Buyers are increasingly doing their homework upfront rather than simply waiving inspections or using pass/fail approaches. The rise in pre-inspections suggests buyers want information but are still willing to present clean offers to remain competitive. This more sophisticated approach balances due diligence with seller preferences.

The pricing data reinforces the neighborhood variability we're seeing:

* 57% of properties sold above list

* 14% at list price

* 29% below list (up substantially from 15%)

Quick Take for Buyers: Consider pre-inspections as a strategy to gain information while still presenting attractive offers in competitive neighborhoods.

For Sellers: While you still hold advantage in many neighborhoods, precise pricing is crucial. The jump in below-list sales (29%) shows that buyers are increasingly sensitive to overpricing, even in a competitive market. Ensure your list price aligns with recent comparable sales to maximize your results.

Want More Detail? For neighborhood-specific insights or personalized analysis:

* Call: 301-564-3058

* Email: [email protected]

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit thefeldmangroup.substack.com