Home Demand Map

Demand for homes across the Washington Metro area varied widely in March. Buyer interest was High in Arlington County and Moderate in Alexandria City but Limited in Frederick County and Slow or Steady in the rest of the metro area. Demand was Steady in Southern Maryland and Slow in the Maryland-West Virginia Panhandle market area and Limited in the North Central Virginia region. At the ZIP code level, the Index was in the Slow or Limited range in two-thirds of communities and in the High or Moderate category in one-fifth of ZIP codes, in both instances virtually unchanged from February.

Home Demand Index

The Bright MLS | T3 Home Demand Index for the Washington Metro area rose 7.8 percent to 83 in March but remained in the Slow category. Compared with one year earlier, the Index was 30.8 percent lower. The Index for entry-level single-family homes fell in March but rose for all other types of homes. Demand increased the most for luxury single-family homes and luxury condos. In each instance the Index increased by 26 percent over the month. Buyer interest remained strongest for luxury condos with demand in the High category. The Index was in the Slow or Steady category for all other segments of the metro area market. The months supply decreased among all types of homes stemming mostly from an increase in sales and little change in the number of listings. The months supply ranged from 1.3 months for mid-market single-family homes to 3.2 months for luxury condos.

Home Demand Index – Historical Year-over-Year Comparison

Despite a solid increase in the Index in January, demand has risen at a much slower pace through March compared with last year. The gap of more than 30 percent reflects the difference between last year’s Moderate demand and this year’s Slow pace of buyer interest. Higher mortgage rates combined with speculation about rising unemployment as the Fed seeks to lower the rate of inflation likely contributed to the weaker pace of demand this year.

Demand and Inventory by Home Type

The Index for entry-level single-family homes fell in March but rose for all other types of homes. Demand increased the most for luxury single-family homes and luxury condos. In each instance the Index increased by 26 percent over the month. Buyer interest remained strongest for luxury condos with demand in the High category. The Index was in the Slow or Steady category for all other segments of the metro area market. The months supply decreased among all types of homes stemming mostly from an increase in sales and little change in the number of listings. The months supply ranged from 1.3 months for mid-market single-family homes to 3.2 months for luxury condos.