Home Demand Map

Buyer interest was High in Arlington County and Alexandria City and Moderate in Falls Church City. The Index was in the Limited category in Frederick County and at a somewhat stronger pace across the counties 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. The Index in 30 percent of ZIP codes in the Greater Washington area was in the High or Moderate category, up marginally from May. Buyer interest in half of ZIP codes was Slow or Limited in June.

Home Demand Index

Demand for homes in the Washington Metro area decreased in June with the Bright MLS | T3 Home Demand Index down by 4.3 percent to 89 reflecting a Slow pace of activity. The Index was 25.8 percent lower than one year earlier.Except for a marginal increase in townhouse demand, buyer interest in all other types of Washington Metro area homes was lower in June. The Index for entry-level single-family homes decreased the most, falling 15 percent to 70, a level of demand in the Slow category. Buyer interest was strongest for luxury condos, which attracted a High level of demand, followed by luxury single-family homes with Moderate buyer interest. Demand was weakest for entry-level single-family homes. The inventory of homes for sale remained very lean with less than two months supply for all types of homes except luxury condos. The months supply ranged from one month for mid-market single-family homes to 2.8 months for luxury condos.

Home Demand Index l Historical Year-over-Year Comparison

Since the seasonal peak in April, the Index has decreased each of the past two months. Demand has been in the Slow category in four of the past six months with only a marginally higher level of Steady activity in April and May. The cumulative impact of higher mortgage rates and a dearth of listings has resulted in a level of buyer activity in the first half of this year well below the pace set one year earlier.

Demand and Inventory by Home Type

Except for a marginal increase in townhouse demand, buyer interest in all other types of Washington Metro area homes was lower in June. The Index for entry-level single-family homes decreased the most, falling 15 percent to 70, a level of demand in the Slow category. Buyer interest was strongest for luxury condos, which attracted a High level of demand, followed by luxury single-family homes with Moderate buyer interest. Demand was weakest for entry-level single-family homes. The inventory of homes for sale remained very lean with less than two months supply for all types of homes except luxury condos. The months supply ranged from one month for mid-market single-family homes to 2.8 months for luxury condos.