Buyer interest was High in Arlington County, Alexandria City and Falls 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. Across the Greater Washington area, demand in 28 percent of ZIP codes was in the High or Moderate range, while buyer interest in just over half of communities was in the Slow or Limited category.
Home Demand Index
Demand for homes in the Washington Metro area fell 7.4 percent according to the Bright MLS | T3 Home Demand Index. The Index, at 88, reflected a Slow pace of buyer interest, down from a Steady level of demand in April. Compared with one year earlier, the Index was 25.4 percent lower. Demand for different types of homes was mixed in May. The Index rose marginally for luxury single-family homes and entry-level condos but was lower among all other segments of the market. Demand was strongest for luxury single-family homes and luxury condos, both of which attracted a High level of demand. Buyer interest was weakest for entry-level and mid-market single-family homes, each with Slow demand. The months supply fell for each type of Washington Metro area home, reflecting a rise in sales and only a small increase in listings on the market. The months supply ranged from one month for mid-market single-family homes to 2.9 months for luxury condos.
Home Demand Index | Historical Year-over-Year Comparison
The May decrease in demand followed four months of consecutive increases. Demand was well below the pace set last spring, however, as homebuyers faced higher mortgage rates and limited inventory along with ongoing speculation about the likelihood of an economic slowdown as the Fed attempts to tamp down elevated inflation.
Demand and Inventory by Home Type
Demand for different types of homes was mixed in May. The Index rose marginally for luxury single-family homes and entry-level condos but was lower among all other segments of the market. Demand was strongest for luxury single-family homes and luxury condos, both of which attracted a High level of demand. Buyer interest was weakest for entry-level and mid-market single-family homes, each with Slow demand. The months supply fell for each type of Washington Metro area home, reflecting a rise in sales and only a small increase in listings on the market. The months supply ranged from one month for mid-market single-family homes to 2.9 months for luxury condos.
