Demand for homes in the Washington Metro area rose in January following two months of seasonal declines in year-end buyer activity. The Bright MLS | T3 Home Demand Index rose slightly more than 23 percent in January to 85, reflecting a Slow pace of home demand. The Index was in the Limited range in December.
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 for homes in the Washington Metro area rose in January following two months of seasonal declines in year-end buyer activity. The Bright MLS | T3 Home Demand Index rose slightly more than 23 percent in January to 85, reflecting a Slow pace of home demand. The Index was in the Limited range in December.
The Index rose for each type of home in January with the greatest increases in higher-priced single-family homes and higher-priced condos, each rising by more than half compared with December. In addition to rising the most, demand was strongest for higher-priced single-family homes and higher-priced condos. The lower- priced single-family segment exhibited the weakest demand. The months supply rose for all market segments with inventory levels ranging from just 0.9 months supply for mid-priced single-family homes to a three-month supply for higher-priced condos.
Home Demand Index – Historical Year-over-Year Comparison
Buyer interest in Washington area homes rose in January as would-be buyers began their search in the run-up to the spring homebuying market. In January, the Index was more than 23 percent lower than one year earlier signaling a somewhat lower level of demand at the start of this year’s spring market. The Index has been below the level one year earlier since the middle of 2021 due to factors including limited inventory, which held down sales, and decreasing affordability as home prices continued to rise.
Home Demand Map
Buyer interest in Arlington County and Alexandria City homes was High in January. Other counties in the Washington Metro areas recorded buyer demand ranging from Steady in the District of Columbia and Prince Georges County to Limited in Frederick County and Falls Church City. Demand was Moderate in Southern Maryland, Steady in the Maryland-West Virginia Panhandle market area and Limited in the North Central Virginia region. Across the Greater Washington area, demand in one-quarter of ZIP codes was in the High or Moderate range roughly double compared with December. Forty-seven percent of ZIP codes recorded a Limited pace of demand, down from 56 percent in December.
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