DC Metro Area Market Overview – December 2023

Home Demand Map

In the Washington Metro area, demand for homes was strongest in Arlington County, with Steady buyer interest, and in Alexandria City with Slow demand. Buyer interest was Limited in the other metro area counties. The weakest level of demand was in Frederick, Loudoun and Montgomery counties. There was a Slow pace of buyer interest in the Maryland-West Virginia Panhandle region and in Southern Maryland and Limited demand in North Central Virginia. Across the Greater Washington area demand was in the High or Moderate ranges in 10 percent of ZIP codes and Slow or Limited in 85 percent of communities, unchanged from October.

Home Demand Index

The Bright MLS | T3 Home Demand Index for the Washington Metro area decreased 3.4 percent to 56, a level signaling continued Limited buyer demand. The Index was 26.3 percent lower than one year earlier.

While demand for entry-level single-family homes rose slightly in November, buyer interest in all other types of homes across the Washington Metro area decreased. The Index for luxury condos and luxury single-family homes fell the most, down by 23 percent and 14 percent, respectively. Despite the decrease in November, buyer interest was strongest for luxury condos, which attracted Slow demand, followed by entry-level condos with Limited buyer interest. Demand was weakest for mid-market single-family homes. The months supply was flat or somewhat higher for all types of homes except luxury condos. The available inventory ranged from 1.8 months supply for mid-market single-family homes to 4.1 months supply for luxury condos.

Home Demand Index / Historical Year-over-Year Comparison

Demand for homes in the Washington Metro area fell slightly in November following a partial rebound in October from the steep September decline. Overall, demand has trended down since peaking in April when buyer interest was in the Steady category. The decrease in the Index has been driven by the usual seasonal slowdown in buyer activity in the second half of the year along with challenging affordability conditions for buyers and limited inventory of homes for sale at most price points.

Demand and Inventory by Home Type

While demand for entry-level single-family homes rose slightly in November, buyer interest in all other types of homes across the Washington Metro area decreased. The Index for luxury condos and luxury single-family homes fell the most, down by 23 percent and 14 percent, respectively. Despite the decrease in November, buyer interest was strongest for luxury condos, which attracted Slow demand, followed by entry-level condos with Limited buyer interest. Demand was weakest for mid-market single-family homes. The months supply was flat or somewhat higher for all types of homes except luxury condos. The available inventory ranged from 1.8 months supply for mid-market single-family homes to 4.1 months supply for luxury condos.