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Summary
The Potomac detached-home market showed signs of balancing in August, with home prices declining from July, fewer new contracts, and slightly lower inventory.
The median sold price was $1,235,000, down 16.6% from July, but still 0.6% higher than August 2025. While the month-to-month decline is significant, home values remain relatively stable compared with the same time last year.
Homes took an average of 25 days to sell, just slightly longer than the five-year August average of 24 days. This indicates that properly priced and well-presented homes are still attracting buyers within a reasonable timeframe.
Buyer activity slowed during August, with 28 new pending contracts, a decrease of 20% from July. Total pending contracts declined 12.2% to 36, while available inventory decreased 4.2% to 68 active listings.
The Contract Ratio was 0.53 pending sales per active listing, down from 0.58 in July but slightly higher than 0.52 in August 2025. The current ratio is also just 2% below the five-year August average of 0.54.
What Does This Mean for Buyers and Sellers?
Overall, the numbers point to a fairly balanced Potomac real estate market, with neither buyers nor sellers holding a significant advantage. Contract activity has slowed, but inventory has also declined, helping keep supply and demand relatively balanced.
For sellers, strategic pricing and strong presentation are increasingly important to stand out and generate offers. For buyers, slower contract activity may provide more negotiating opportunities and additional time to evaluate properties, particularly on homes that have been on the market longer.
Potomac remains a highly desirable luxury market, but current conditions make it especially important for both buyers and sellers to understand recent comparable sales, competition, and neighborhood-specific pricing when making real estate decisions.
