Hi Everyone!
I’m Corey Feldman from the Feldman Group at RLAH, I hope you are having a meaningful and enjoyable Memorial Day weekend! As we pay tribute to the courageous soldiers who sacrificed their lives for our freedom, let’s fully embrace and celebrate the liberties they secured for us.
With their bravery, we can savor the sunshine, breathe in the fresh air of spring, and enjoy gatherings with friends and family in peace. So, let’s fire up the grill, pop open some chilled drinks, and let the kids revel in the freedom that was hard-earned. It’s time to make joyful memories in the peace they fought to preserve.
Now let’s get into the data!
🏘️ Market Pulse: Competition Remains Intense
Here are the latest metrics from my Brokerage: new listings received an average of 2.4 offers, with 77% involving multiple bidders. It’s a bit of a drop from last week (thanks, holiday weekend!), but the competition is still fierce. Most offers are above the list price, with 73% over, 12% at list, and 15% below.
Buyers are also waiving contingencies left and right. This week, 54% of transactions skipped inspections, 23% went for pre-inspections, and 8% included pass/fail inspections. Only 15% of buyers wanted full inspections.
These numbers show that it’s still a seller’s market, with buyers driving up prices and skipping contingencies to get the home they want.
Now, let’s check out what’s happening in each neighborhood!
🌐 Neighborhood Spotlight: Nuanced Trends
🏡 Bethesda, MD - Single-Family Homes
Median List Price: $2,225,000
Median Price of New Listings: $1,925,000
Price Per Square Foot: $463
Average Days on Market: 48
Median Days on Market: 28
Price Decreased: 29%
Price Increased: 1%
Relisted: 10%
Inventory: 79
Median Rent: $5,765
Market Action Index (MAI): 50 (Strong Seller's Market)
Bethesda's single-family market is standing its ground in seller's territory with an MAI of 50, just slightly down from 52 last week. Even with a small dip in median list price and an uptick in inventory to 79 homes, well-priced properties are still flying off the shelves, as shown by the 28-day median DOM.
🏢 Bethesda, MD - Condos/Townhomes
Median List Price: $369,000
Median Price of New Listings: $430,000
Price Per Square Foot: $352
Average Days on Market: 29
Median Days on Market: 21
Price Decreased: 31%
Price Increased: 3%
Relisted: 9%
Inventory: 35
Median Rent: $2,950
Market Action Index (MAI): 55 (Strong Seller's Market)
Bethesda's condo/townhome segment is experiencing quite the shift, with the median list price taking a nosedive to $369,000 from $1,400,000 last week. But fear not, the MAI remains in strong seller's territory at 55, up from 53 last month. The 21-day median DOM suggests well-priced homes are still being snatched up quickly, although the high percentage of price reductions at 31% hints at some softening at the top end.
🏡 Chevy Chase, MD - Single-Family Homes
Median List Price: $2,597,000
Median Price of New Listings: $1,787,366
Price Per Square Foot: $556
Average Days on Market: 55
Median Days on Market: 21
Price Decreased: 23%
Price Increased: 5%
Relisted: 9%
Inventory: 22
Median Rent: $6,950
Market Action Index (MAI): 55 (Strong Seller's Market)
Chevy Chase single-family homes are holding steady, with the MAI at 55, unchanged from last week. The median list price has taken a slight dip to $2,597,000, but the 21-day median DOM underscores that demand is still going strong. Nearly a quarter of listings saw price reductions, suggesting some pushback at the high end.
🏢 Chevy Chase, MD - Condos/Townhomes
Median List Price: $780,000
Median Price of New Listings: $320,000
Price Per Square Foot: $508
Average Days on Market: 34
Median Days on Market: 21
Price Decreased: 29%
Price Increased: 0%
Relisted: 5%
Inventory: 38
Median Rent: $2,950
Market Action Index (MAI): 41 (Slight Seller's Advantage)
The Chevy Chase condo/townhome market is hanging out in slight seller's advantage territory with an MAI of 41, down from 43 last month. While prices are still relatively high, the hefty percentage of price reductions at 29% suggests the market may be hitting a plateau.
🏡 Gaithersburg, MD - Single-Family Homes
Median List Price: $985,000
Median Price of New Listings: $853,950
Price Per Square Foot: $288
Average Days on Market: 58
Median Days on Market: 21
Price Decreased: 35%
Price Increased: 2%
Relisted: 4%
Inventory: 52
Median Rent: $3,200
Market Action Index (MAI): 68 (Strong Seller's Market)
Gaithersburg's single-family market is holding steady in seller's territory with an MAI of 68, down from 72 last month. The median DOM increased to 21 from 14 last week and the high percentage of price reductions at 35% suggest the market may be cooling off just a tad.
🏢 Gaithersburg, MD - Condos/Townhomes
Median List Price: $442,500
Median Price of New Listings: $498,000
Price Per Square Foot: $259
Average Days on Market: 9
Median Days on Market: 7
Price Decreased: 11%
Price Increased: 0%
Relisted: 0%
Inventory: 28
Median Rent: $2,110
Market Action Index (MAI): 85 (Strong Seller's Market)
Gaithersburg's condo/townhome market is still a seller's paradise, with the MAI at 85, unchanged from last month. The lightning-fast 7-day median DOM confirms that strong demand is still going strong, even as inventory creeps up to 28 units.
🏡 Germantown, MD - Single-Family Homes
Median List Price: $699,999
Median Price of New Listings: $699,999
Price Per Square Foot: $253
Average Days on Market: 41
Median Days on Market: 14
Price Decreased: 41%
Price Increased: 6%
Relisted: 6%
Inventory: 17
Median Rent: $2,498
Market Action Index (MAI): 81 (Strong Seller's Market)
Germantown's single-family market is still firmly in seller's hands, with the MAI at 81, just a smidge down from 84 last month. The high percentage of price decreases at 41% suggests some notable resistance at the top end, but the speedy 14-day median DOM indicates that well-priced homes are still being gobbled up quickly.
🏢 Germantown, MD - Condos/Townhomes
Median List Price: $385,000
Median Price of New Listings: $435,000
Price Per Square Foot: $262
Average Days on Market: 13
Median Days on Market: 7
Price Decreased: 15%
Price Increased: 3%
Relisted: 6%
Inventory: 33
Median Rent: $2,018
Market Action Index (MAI): 86 (Strong Seller's Market)
Germantown's condo/townhome market is still sizzling, with the MAI at 86, down just a touch from 90 last month as inventory jumps to 33 units. The zippy 7-day median DOM suggests strong underlying demand. Price reductions have moderated to 15% and there are even a few price increases, hinting at potential renewed upward pressure.
🏡 Kensington, MD - Single-Family Homes
Median List Price: $1,212,500
Median Price of New Listings: $1,075,000
Price Per Square Foot: $377
Average Days on Market: 46
Median Days on Market: 25
Price Decreased: 38%
Price Increased: 0%
Relisted: 0%
Inventory: 8
Median Rent: $3,850
Market Action Index (MAI): 69 (Strong Seller's Market)
Kensington's single-family market is holding steady, with the MAI at 69, up from 59 last month, even as inventory tightens to just 8 homes. The 25-day median DOM points to quick sales. Over a third of listings saw price cuts, but the rising MAI suggests demand is absorbing the available supply.
🏡 Potomac, MD - Single-Family Homes
Median List Price: $2,690,000
Median Price of New Listings: $1,697,500
Price Per Square Foot: $352
Average Days on Market: 108
Median Days on Market: 49
Price Decreased: 24%
Price Increased: 4%
Relisted: 11%
Inventory: 55
Median Rent: $6,000
Market Action Index (MAI): 48 (Strong Seller's Market)
Potomac's single-family market inched up to an MAI of 48 from 47 last month, even as inventory expands to 55 homes. The median list price dropped to $2,690,000 from $2,998,000 last week, suggesting ongoing price sensitivity at the high end. Despite the dip, price per square foot remained stable at $352, implying a portion of the market is still priced at a premium.
The median DOM increased to 49 from 42, reflecting a more tempered pace than lower price points. Nearly a quarter of listings saw price reductions, confirming ongoing buyer pushback, especially at the luxury tier. However, 4% did see price increases, hinting at pockets of strength. While the Potomac market is experiencing some price adjustments, the steady MAI and potential for prices to stabilize suggest that the market remains relatively resilient.
🏡 Rockville, MD - Single-Family Homes
Median List Price: $750,000
Median Price of New Listings: $750,000
Price Per Square Foot: $364
Average Days on Market: 31
Median Days on Market: 14
Price Decreased: 31%
Price Increased: 3%
Relisted: 10%
Inventory: 39
Median Rent: $3,250
Market Action Index (MAI): 78 (Strong Seller's Market)
Rockville's single-family market remains firmly in seller's favor, with the MAI at 78, down from 82 last month, as inventory swells to 39 homes. The median list price dropped to $750,000 from $899,000 last week. Nearly a third of listings saw price cuts, although a few saw increases. The rapid 14-day median DOM confirms strong demand persists, especially in the middle tiers.
🏢 Rockville, MD - Condos/Townhomes
Median List Price: $537,450
Median Price of New Listings: $474,500
Price Per Square Foot: $368
Average Days on Market: 26
Median Days on Market: 21
Price Decreased: 21%
Price Increased: 10%
Relisted: 1%
Inventory: 70
Median Rent: $2,500
Market Action Index (MAI): 57 (Strong Seller's Market)
Rockville's condo/townhome market remains in solid seller's territory, with the MAI steady at 57 as inventory balloons to 70 units. Price reductions have moderated to 21%, and 10% of listings even saw price increases, suggesting the market is finding its equilibrium. The 21-day median DOM points to still-healthy demand.
🏡 Silver Spring, MD - Single-Family Homes
Median List Price: $749,000
Median Price of New Listings: $749,000
Price Per Square Foot: $322
Average Days on Market: 48
Median Days on Market: 14
Price Decreased: 34%
Price Increased: 3%
Relisted: 3%
Inventory: 94
Median Rent: $3,000
Market Action Index (MAI): 69 (Strong Seller's Market)
Silver Spring's single-family market is holding steady in seller's territory, with the MAI at 69, down slightly from 70 last month as inventory contracts to 94 homes. Price reductions have accelerated to 34%, confirming ongoing buyer pushback, especially at the higher end. The 14-day median DOM is unchanged, suggesting the market is maintaining its pace.
🏢 Silver Spring, MD - Condos/Townhomes
Median List Price: $334,000
Median Price of New Listings: $379,900
Price Per Square Foot: $275
Average Days on Market: 23
Median Days on Market: 21
Price Decreased: 26%
Price Increased: 1%
Relisted: 8%
Inventory: 77
Median Rent: $1,999
Market Action Index (MAI): 70 (Strong Seller's Market)
Silver Spring's condo/townhome market remains in solid seller's favor, with the MAI up to 70 from 68 last month as inventory holds at 77 units. Over a quarter of listings saw price cuts, although the 21-day median DOM suggests properly priced properties are still finding eager buyers.
📈 Key Trends and Takeaways
As we analyze this week’s real estate data, several key trends emerge that are crucial for both buyers and sellers:
1. Persistent Seller’s Market: Across most neighborhoods, the Market Action Index (MAI) consistently indicates a strong seller’s market. This is characterized by quick sales, often with homes spending fewer days on the market and frequently selling above the list price. Buyers should be prepared to act swiftly and possibly overbid to secure their desired properties.
2. Price Sensitivity: Despite the overall strength of the market, there’s notable price sensitivity, particularly at the higher end. Several areas, such as Potomac and Silver Spring, have seen a significant portion of listings with price decreases. This suggests that while demand remains high, buyers are cautious about overpaying, reflecting a more discerning market environment.
3. Contingencies Becoming Rare: A significant trend this season is buyers waiving contingencies to make their offers more appealing. Over half the transactions in some areas are skipping inspections, which could mean faster closings but also higher risks for buyers. Sellers benefit from fewer deal delays, but buyers need to weigh the risks of foregoing such precautions.
4. Rental Market Strength: The rental market remains robust, with median rents holding steady or increasing in most areas. This trend provides an excellent opportunity for investors looking to enter or expand in the rental market, suggesting sustained demand and potentially lucrative returns.
5. Neighborhood Variances: Each neighborhood exhibits unique traits and shifts. For instance, Bethesda’s condo market shows a dramatic drop in median list prices, whereas Chevy Chase maintains high price points with modest adjustments. Understanding these nuances is key to crafting strategies that are specifically tailored to each market’s conditions.
6. Opportunities for Buyers: Despite the competitiveness, the increase in inventory and the slight cooling in some sectors suggest that opportunities are still available for buyers, especially those who are well-informed and prepared to negotiate.
This market presents dynamic opportunities and challenges, necessitating a well-informed, strategic approach to real estate transactions. Whether you’re buying, selling, or investing, staying updated on these trends will enable you to make informed decisions and maximize your outcomes.
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