August ’22 – DC Metro Area Market Overview

Buyer demand for homes in the Washington Metro area fell in July according to the Bright MLS | T3 Home Demand Index. The Index, at 110, was down 8.3 percent over the month and 10.6 percent lower than one year earlier.

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

Buyer demand for homes in the Washington Metro area fell in July according to the Bright MLS | T3 Home Demand Index. The Index, at 110, was down 8.3 percent over the month and 10.6 percent lower than one year earlier.

Demand for all types of homes in the Washington Metro area fell over the month. The Index for higher-priced single-family homes and for higher-priced condos fell 13 percent over the month, more than any other segments of the market. Despite the declines, demand for homes in July was strongest in each of these segments with the Index remaining in the High range. Buyer interest was Limited for lower-priced single-family homes and Moderate for other segments of the market. The months supply of inventory rose for each market segment in July, marking the third consecutive month where the months supply increased for all types of Washington Metro area homes. Inventory levels ranged from a 1.6 months supply for mid-priced single-family homes to 3.3 months for higher-priced condos.

Home Demand Index –

Historical Year-over-Year Comparison

Demand for homes in the Washington Metro area has been in the Moderate range throughout the spring and early summer. Since the April peak, the Index has decreased by nearly 14 percent. So far this year, the Index has been well below the same period one year earlier. One reason is the accumulating effects of continued increases in home prices along with a rise in mortgage rates since the start of the year that has reduced affordability.

Home Demand Map

Buyer interest in Arlington and Fairfax counties along with Alexandria City was in the High range in July. Demand was Slow in Frederick County and Steady in Montgomery and Prince Georges counties. The Index was in the High range in Southern Maryland and the Maryland-West Virginia Panhandle market areas and at a Moderate level in the North Central Virginia region. Across the Greater Washington area, demand on one-third of ZIP codes was in the High range, down slightly from June, while 12 percent of ZIP codes recorded Moderate demand, up from nine percent the previous month.