The market trend line, below, provides a high-level monthly overview of the Home Demand Index for each of the metro market areas within the Greater Washington D.C. Metro Area. The Home Demand Index is baselined at 100, with 90-110 indicating a steady market. Index values above 110 indicate moderate and high activity while Index values below 90 indicate slower or limited activity. For more information for a given period of time, click on any point on the map to pull up the monthly report.
Each of the market areas listed above are defined as follows:
- Maryland-West Virginia Panhandle – Allegany, MD; Berkeley, WV; Garrett, MD; Grant, WV; Hampshire, WV; Hardy, WV; Jefferson, WV; Mineral, WV; Morgan, WV; Pendleton, WV; Washington, MD;
- North Central Virginia – Caroline, VA; Clarke, VA; Culpeper, VA; Fauquier, VA; Frederick, VA; Fredericksburg City, VA; King George, VA; Madison, VA; Manassas City, VA; Orange, VA; Page, VA; Prince William, VA; Rappahannock, VA; Shenandoah, VA; Spotsylvania, VA; Stafford, VA; Warren, VA; Winchester City, VA;
- Southern Maryland – Calvert, MD; Charles, MD; Saint Marys, MD;
- Washington D.C. Metro – Alexandria City, VA; Arlington, VA; Fairfax, VA; Falls Church City, VA; Frederick, MD; Loudoun, VA; Montgomery, MD; Prince Georges, MD; Washington, DC;
Home Demand Index
Demand fell for each type of Washington Metro area home in December. Demand for higher-priced single-family and higher-priced condos decreased the most over the month, each dropping by more than one-third. Buyer interest in mid-priced single-family homes fell by 31 percent. The lower-priced and mid-priced single-family segments exhibited the weakest demand with both in the Limited demand category. All other types of homes recorded a Slow level of demand. Inventory levels ranged from just 0.8 months supply for mid-priced single-family homes to a 2.3 months supply for higher-priced condos. The month’s supply was down slightly for all market segments due mostly to a decrease in the number of listings on the market.
Home Demand Index for the Washington Metro area fell by 29 percent in December to a reading of 69. The Limited demand in December reflected a decline from the Steady pace in November. The Index was slightly more than 23 percent lower than the level one year earlier.
Home Demand Index | Historical Year-over-Year Comparison
Demand for homes in the Washington Metro area decreased sharply in November and December, with the Index recording a cumulative decline of 45 percent over the period. The decrease followed several months in the summer and fall when buyer interest remained moderate. The two-month drop in the Index was greater than the decrease over the same period one year earlier. This suggests that in addition to the seasonal drop in buyer interest, other factors, including rising home prices, reduced affordability, and limited inventory, also sidelined some would-be buyers.
Home Demand Map
Buyer interest in Arlington County and Alexandria City homes eased from a High level to a Moderate level in December. The Index was in the Slow range in Prince Georges and Fairfax counties and in the Limited category throughout the rest of the Washington Metro area. Buyer interest was Steady in the Southern Maryland and Maryland-West Virginia Panhandle market areas and Limited in the North Central Virginia region. Across the Greater Washington area, buyer demand in 13 percent of ZIP codes was High or Moderate in December, down from 32 percent in November. The Index in 58 percent of ZIP codes was in the Limited range, an increase from 38 percent in November.
