Home Demand Map

Demand was High in Alexandria City, Moderate in Arlington County and Steady in Falls Church City. Buyer interest was in the Slow or Limited range in the rest of the Washington 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 one-quarter of ZIP codes was in the High or Moderate categories, down slightly from June. Demand in 58 percent of ZIP codes was either Slow or Limited, an increase from half of communities in June.

Home Demand Index

Demand for Washington Metro area homes fell in July according to the Bright MLS | T3 Home Demand Index. The Index was 11 percent lower over the month and reflected a Slow pace of buyer activity. The Index was 26.4 percent lower than one year earlier when demand was in the Moderate category. Buyer interest in all types of homes fell in July. The Index for luxury single-family homes decreased the most, falling by 15 percent, followed by a 13 percent decline for mid-market single-family homes. Demand remained strongest for luxury condos, which attracted a High level of buyer interest, followed by luxury single-family homes with Steady demand. Demand was weakest for entry-level and mid-market single-family homes, each with buyer interest in the Slow range. The inventory of homes available for sales remained very low in July. The months supply did increase for each type of home, however, due to lower sales and little change in the number of listings on the market. The months supply ranged from 1.3 months for mid-market single-family homes to 3.4 months for luxury condos.

Home Demand Index | Historical Year-over-Year Comparison

Buyer interest in Washington Metro area homes fell for the third consecutive month after reaching a seasonal peak in April. The July decrease was greater than the previous two monthly declines. Higher mortgage rates and continued home price gains have reduced affordability. Moreover, low inventory levels contributed to the decrease by limiting the number of home sales.

Demand and Inventory by Home Type

Buyer interest in all types of homes fell in July. The Index for luxury single-family homes decreased the most, falling by 15 percent, followed by a 13 percent decline for mid-market single-family homes. Demand remained strongest for luxury condos, which attracted a High level of buyer interest, followed by luxury single-family homes with Steady demand. Demand was weakest for entry-level and mid-market single-family homes, each with buyer interest in the Slow range. The inventory of homes available for sales remained very low in July. The months supply did increase for each type of home, however, due to lower sales and little change in the number of listings on the market. The months supply ranged from 1.3 months for mid-market single-family homes to 3.4 months for luxury condos.