Home Demand Map

Buyer interest remained High in Arlington County and was at a Moderate pace in Alexandria City and Fall Church City. The Index was in the Limited category in Frederick County and at a somewhat stronger pace of Slow or Steady in the rest of the metro area. Demand was Moderate in Southern Maryland and the Maryland-West Virginia Panhandle market areas and Slow in the North Central Virginia region. Demand for homes was in the High or Moderate range in 28 percent of the ZIP codes in the Greater Washington area and Limited in more than one-third of ZIP codes.

Home Demand Index

The Bright MLS | T3 Home Demand Index for the Washington Metro area rose 3.4 percent in April to 90, a level that is consistent with a Steady pace of buyer demand. Although marking the fourth consecutive monthly increase, the Index was 29.1 percent lower than one year earlier. Buyer interest in entry-level condos was down marginally, while the Index for all other segments rose slightly. The Index was well below the year-earlier level across all segments with luxury single-family homes 40 percent lower, more than any other segment of the metro market. Demand was strongest for luxury condos, which continued to attract a High level of buyer interest, and in the Moderate category for luxury single-family homes. Buyer interest was in the Slow or Steady range for all other segments of the market. The months supply changed little in April compared with March but remained relatively lean among most segments of the market. The months supply ranged from 1.2 months for mid-market single-family homes to 3.5 months for luxury condos.

Home Demand Index – Historical Year-over-Year Comparison

Demand for homes in the Washington Metro area has risen at a subdued pace since the start of the year. Overall, the Index increased 58 percent since the December low, which is markedly lower than the 84 percent increase over the same period one year earlier. Home shoppers continue to be challenged by relatively low inventory for most types of homes along with higher mortgage rates that limit affordability for some would-be buyers.

Demand and Inventory by Home Type

Buyer interest in entry-level condos was down marginally, while the Index for all other segments rose slightly. The Index was well below the year-earlier level across all segments with luxury single-family homes 40 percent lower, more than any other segment of the metro market. Demand was strongest for luxury condos, which continued to attract a High level of buyer interest, and in the Moderate category for luxury single-family homes. Buyer interest was in the Slow or Steady range for all other segments of the market. The months supply changed little in April compared with March but remained relatively lean among most segments of the market. The months supply ranged from 1.2 months for mid-market single-family homes to 3.5 months for luxury condos.