Potomac, MD 20854 Real Estate Market Report

ZIP Code: 20854
Report Date: May 2026
Market Temperature: NEUTRAL
Scope: This ZIP code analysis focuses on single-family residential (SFR) properties. Metrics are calculated from recent sales and active listings within the past 90 days.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Property Taxes

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Liquidity & Velocity

Note: A Sale-to-List Ratio near 100% can occur when properties sell at or near their final listing price after price adjustments during the listing period, even when initial listing prices differ significantly from sale prices.

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Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in the 20854 area are averaging 6.3%, consistent with the broader market trends observed throughout early 2026.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. median sold price: $1,275,000 is the primary indicator of recent market value in 20854 and points to realized transaction levels that are meaningfully below the asking backdrop, suggesting sellers may be testing higher price expectations; pricing friction between listings and closed sales may be present given the divergence from the median listing price.

2. median listing price: $1,872,000 versus the median sold price indicates a material spread between asks and completed transactions, which appears to be keeping sales focused around the representative recent sale level rather than at list; expect negotiation pressure on higher-priced listings.

3. median days on market: 198 implies slower sales velocity and longer time-to-contract for typical SFR and condo offerings in Potomac, which, combined with the observed price spread, suggests extended marketing periods are likely affecting seller liquidity.

4. Current 30-year fixed mortgage rates averaging 6.3% reflect elevated financing costs in the area and are an important headwind for affordability; elevated interest rate pressure may continue to constrain price acceleration despite rents and prices trending up.

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Notable Properties

The following 8 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.

Potomac, MD 20854 Real Estate Market Report

ZIP Code: 20854
Report Date: May 2026
Market Temperature: NEUTRAL
Scope: This ZIP code analysis focuses on condominium properties. Metrics are calculated from recent condo sales and active listings within the past 90 days.

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Market Overview

This analysis is based on a sample of properties from this ZIP code (up to 200 sold properties and up to 100 active properties). The median prices below are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Market Metrics

Note: The property counts shown above represent only the properties analyzed in this report sample, not the total inventory for this ZIP code. Median prices are calculated from all available properties in the sample, while trend analysis uses properties from the selected analysis window.

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Rental Market

Note: The relationship between property values and rental rates reflects different market dynamics. Higher-priced properties may have lower rental yields due to factors such as luxury market positioning, owner-occupancy preferences, or long-term appreciation strategies rather than immediate rental income maximization.

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Property Taxes

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Liquidity & Velocity

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Market Trends & Context

Understanding Market Temperature

A Neutral market indicates balanced conditions where neither buyers nor sellers have a strong advantage, typically characterized by flat price trends, extended but stable days on market, and moderate inventory relative to sales.

Current Mortgage Rate Context

Market-level mortgage rate comparison for this area:

Current 30-year fixed mortgage rates in the 20854 area are averaging 6.3%, consistent with the broader market trends observed throughout early 2026.

Note: Interest rate comparisons provide market context. The existing "Interest Rate Pressure" metric above shows the qualitative market impact.

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Key Findings

1. The neighborhood's median sold price is 899,950, which serves as the primary indicator of current market value and recent transaction activity; the price year-over-year trend is up, suggesting modest appreciation in realized sale prices.

2. The median price per square foot is 653 and the median market rent is 2,700; with rent year-over-year trend up, rental rates are strengthening and help support investor and landlord cash-flow expectations relative to sales pricing.

3. Market temperature is neutral (neutral) while the analyzed sample shows relatively constrained active supply, which suggests balanced liquidity with some pricing friction and moderate transaction velocity rather than a clear one-sided market advantage.

4. Interest rate pressure is elevated (elevated) and property rate comparison data note that current 30-year fixed mortgage rates in the area are averaging 6.3%, a headwind that may prolong decision timelines and reduce purchasing power for rate-sensitive buyers.

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Notable Properties

The following 7 properties represent notable market examples and recent transactions that illustrate key market dynamics. These are illustrative examples selected for their significance (top sales, market benchmarks, quick sales) and are not the basis for the statistical calculations shown above.