Buyer interest in Arlington County and Alexandria City remained in the High range in August. Demand was Slow in Frederick County and Washington, DC and Steady in Montgomery and Prince Georges counties. The Index was in the High range in the Southern Maryland and Maryland-West Virginia Panhandle market areas and Steady in the North Central Virginia region. Across the Greater Washington area, demand in 40 percent of ZIP codes was in the High or Moderate category in August, compared with 46 percent the previous month. At the other end of the range, buyer interest in 31 percent of communities was Limited in August versus 25 percent in July.
Home Demand Index
Demand for homes in the Washington Metro area rose slightly in September according to the Bright MLS | T3 Home Demand Index. The Index, at 105, increased four percent over the month but remained in the Steady demand category and was 19.2 percent lower than one year earlier.
Buyer interest in Washington Metro area homes was strongest for higher-priced single-family homes and higher-priced condos, both in the High demand category. The Index was in the Moderate range for lower-priced condos and townhouses and Steady for mid-priced single-family homes. The Index for higher-priced single-family homes, condos and townhouses rose over the months. The months supply rose for all segments of the market and ranged from 4.9 months for higher-priced condos to 1.9 months for mid-priced single-family homes.
Home Demand Index – Historical Year-over-Year Comparison
Following a two-month decrease, demand for homes in the Washington Metro area rose slightly in September. Demand has trailed year-earlier levels for several months, most recently reflecting the impact of significantly higher mortgage rates combined with consumers’ uneasiness about the economy, which has sharply curtailed activity in other market areas as well.