In Bethesda, MD, the condo market is continuing the trend we saw in November of a softening market.
The median sold price for Condo & Coop properties for December was $296,950, representing a decrease of 4.5% compared to last month and a decrease of 0.8% from Dec 2014. Similarly, length of time a property stays on the market has increase. The average days on market for units sold in December was 65 days, 16% above the 5-year December average of 56 days. This is contrary to the slight reduction in the average days on market for the overall Bethesda market which was at 61 days versus the 5 year average of 62 days.
There was a 41.7% month over month decrease in new contract activity with 14 New Pendings; a 19.4% MoM decrease in All Pendings (new contracts + contracts carried over from November) to 25; and a 9.6% decrease in supply from the previous month to 75 active units.
However, the overall supply of inventory – 75 active units – shows a significant market change. The five year average of active listings is 49 in December and there were 52 listings on the market in December 2014. This is consistent with the increase in all types of listings in Bethesda.
This activity resulted in a Contract Ratio of 0.33 pendings per active listing, down from 0.37 in November and a decrease from 0.50 in December 2014. The Contract Ratio is 44% lower than the 5-year December average of 0.59. This lower Contract Ratio signifies a relative decrease in contract activity compared to supply, and indicates the market is moving in the buyer’s favor.
While there has been a 7.1% increase in the median sale price in 2015 ($318,750) the median sold price in December was dramatically below that at $296,950, as noted above. The decrease in median sold price, the increased days on market, and increased inventory all strongly suggest that the market is shifting in favor of a buyer market. Now is not the time to be setting new price records if you are planning to sell your home – but it is a great time to buy before the spring market heats up and interest rates increase.
If you would like a complementary analysis of your home’s market value, please give the Lise Howe Group a call at 240-401-5577 or email us at firstname.lastname@example.org or just click here! Those contact points also work if you want to sit down and talk about the home buying process!