| Demand for homes was strongest in Arlington County and Alexandria City in December although the Index was in the Slow range. Buyer interest was Limited in the other counties in the metro area. The Index decreased over the month in each Washington Metro area county. Demand was Slow in the Southern Maryland and Maryland-West Virginia Panhandle market areas and Limited in the North Central Virginia region. Across the Greater Washington market area, demand was in the Slow or Limited range in 84 percent of ZIP codes, compared with 67 percent in November. |
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| Home Demand Index The Bright MLS | T3 Home Demand Index for the Washington Metro area fell 25.3 percent in December to a level reflecting Limited demand for homes. The Index was 18.8 percent lower than one year earlier. The Index for all types of homes declined in December. Demand for higher-priced single-family homes fell the most, decreasing 37 percent over the month, followed by a 30 percent decline for higher-priced condos. The Index was highest for higher-priced single-family homes and higher-priced condos, although only in the Slow range of demand. Buyer interest was Limited in all other segments. In December, the months supply of inventory fell among all segments except higher-priced condos. The months supply ranged from two months for mid-priced single-family homes to 5.3 month for higher-priced condos. |
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| Home Demand Index | Historical Year-over-Year Comparison |
| Demand for homes in the Washington Metro area was stable through most of the summer and early fall months before dropping steadily since October. Moreover, demand was lower than the year-earlier pace throughout the past 12 months. Challenging affordability conditions, amplified by higher mortgage rates, accounted for some of the decrease in buyer interest along with the usual seasonal decline in market activity at the end of the year. |
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| Demand and Inventory by Home Type |
| The Index for all types of homes declined in December. Demand for higher-priced single-family homes fell the most, decreasing 37 percent over the month, followed by a 30 percent decline for higher-priced condos. The Index was highest for higher-priced single-family homes and higher-priced condos, although only in the Slow range of demand. Buyer interest was Limited in all other segments. In December, the months supply of inventory fell among all segments except higher-priced condos. The months supply ranged from two months for mid-priced single-family homes to 5.3 month for higher-priced condos. |
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