Home Demand Map

Demand was Steady in Arlington County and Slow in Falls Church City and Alexandria City. Buyer interest was Limited in the rest of the Washington Metro area counties. The Index was lower in each county compared with August. Demand was Slow in the Maryland-West Virginia Panhandle area and Limited in Southern Maryland and North Central Virginia. Buyer interest was in the High or Moderate category in just 5 percent of ZIP codes across the Greater Washington area and in the Slow or Limited range in nearly 90 percent of communities.

Home Demand Index

Demand for homes in the Washington Metro area fell in September according to the Bright MLS | T3 Home Demand Index. The Index, at 48, was 37.7 percent lower over the month and reflected a Limited pace of buyer activity. Compared with one year earlier, the Index was 54.7 percent lower. Buyer interest in all types of homes fell in September. The Index for entry-level single-family homes and entry-level condos was roughly 40 percent lower while buyer interest in other segments fell somewhat less. Demand was strongest for luxury condos, which attracted a Steady level of buyer interest, while demand for all other types of homes was in the Limited range. The inventory of homes available for sale remained low with less than a two months supply in each segment except luxury single-family homes and luxury condos. The months supply was generally higher in September and ranged from 1.6 months for mid-market single-family homes to 3.6 months for luxury condos.

Home Demand Index | Historical Year-over-Year Comparison

September marked the fifth consecutive decrease in the Index since the April peak in buyer activity. The decrease in September was much greater than the previous months’ declines and contrasts with the modest uptick in activity one year earlier. Lean inventory and rising mortgage rates have combined to drive down affordability resulting in the sharp decrease in the Index in September.

Demand and Inventory by Home Type

Buyer interest in all types of homes fell in September. The Index for entry-level single-family homes and entry-level condos was roughly 40 percent lower while buyer interest in other segments fell somewhat less. Demand was strongest for luxury condos, which attracted a Steady level of buyer interest, while demand for all other types of homes was in the Limited range. The inventory of homes available for sale remained low with less than a two months supply in each segment except luxury single-family homes and luxury condos. The months supply was generally higher in September and ranged from 1.6 months for mid-market single-family homes to 3.6 months for luxury condos.