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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: Corey@FeldmanGroupRe.com
