Market conditions in September 2006 for real estate in Montgomery County has slowed from September 2005.  Dollar volume of homes in Montgomery County, MD sold in September is down 28.54 from September 2005.  This decline in volume of Montgomery County homes sold is due to several factors, not unique to real estate in Montgomery County, but reflected throughout the Maryland and Northern Virginia real estate market.

Home prices reached a dramatic peak in approx. August of 2005 and, combined with a continuing rise in interest rates, fewer home buyers qualified for homes that met their needs.  Further, local home buyers who were familiar with the market, were not willing to pay the price for homes available.

REAL ESTATE IN POTOMAC MARYLAND

Example:  A 40 year old home in Potomac, Maryland with 4 bedrooms, 2 full, 1 half baths and a 2 car garage and a partially finished basement was selling for $770,000,  or $375,000 a square foot.  Local buyers for homes in Potomac, Maryland were and are just simply not willing to pay $375 per square foot for a 40 year old home.

Beginning in early summer of 2006, prices began to come down, SLOWLY on some homes.  The increase in price from September 2005 to September 2006 was only 1.52% compared with the average increase of 10-20% experienced in Montgomery County real estate in recent years.  This is a dramatic change and is reflected in the average day on the market for homes listed for sale in Potomac, 57 days compared with the 15-25 days on the market experienced by home owners in Potomac in past years.

Buyers are able to negotiate price, terms and conditions for the first time in 5 years. With properties for sale in Potomac staying on the market for 2-3 months or longer, sellers are willing to negotiate.  Homefinders.com has experienced a willingness on the part of sellers to accept lower prices, settlement dates convenient for buyers and more flexibility with home inspections.  These are important advantages for home buyers and a welcomed relief for the strong seller?s market experienced here in the past 5 years.