Bethesda Real Estate Market Appears To Be On The Mend

The Bethesda real estate market appears to be getting a bit healthier, albeit slowly.  The graph below shows us the MAI, or Median Action Index, which is a composite measurement that tracks the overall health and balance of a location, for the Bethesda area.  When we are dealing with the MAI, a value of 30 on the graph represents a stable neutral market, with neither buyers nor sellers having a huge advantage over the other.  Any values below 30 would indicate a Buyers Market, with the lower the value, the further into a Buyers Market we would be.  Clearly, we are well into Buyers territory here.Bethesda Real Estate Median Action Index

Three years ago, towards the beginning of 2009, the MAI was at a lowly 13, pretty horrendous for Bethesda real estate sellers, but quite advantageous for buyers in the market as there was likely a glut of homes available to choose from, with homeowners more willing than normal to come off their asking price.  But since that time, we have seen the index track largely up, with only a few moments of wild volatility.  As of our latest measurement, the local MAI now stands at almost 21, well over 50% higher than 2009.

 

Inventory levels for Bethesda real estate market

One factor that may be helping the MAI rise may be how many homes are on the market at any given time.  Over the last few months, we have noticed that there are fewer and fewer homes for sale than there were last summer.  Looking at the graph above, you can see just how dramatic the change has been.  Last July, there were about 320 homes for sale in Bethesda, but that number has fallen to 175 or so as of this past week.  With a few more buyers coming on to the market and a continued economic recovery, we may continue to see dropping inventory levels, as well as an overall boost to the health of the local real estate market.

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