What is the Home Demand Index?
The Home Demand Index (HDI) is the nation’s only local housing market index that tracks pre-sale activity to measure housing market competitiveness. The HDI uses data on pre-sale activities, including in-person showings of homes and views of homes online, to measure housing market activity across different geographies and types of homes. The data used to construct the HDI are the most accurate and up-to-date information from the real estate agents and prospective buyers and sellers that are active in the market.
While most housing market indices are based on history, the HDI provides forward-looking insights to real estate professionals and consumers to help make better decisions in a rapidly changing real estate market
Greater Metropolitan Market Areas
The Bright MLS |T3 Home Demand Index currently covers the three greater metropolitan market areas served by Bright MLS, namely the Greater Philadelphia Area (in blue), the Greater Washington D.C. Area (in gray), and the Greater Baltimore Area (in orange).
Colors are provided for visual identification of each market area and do not correlate to index activity level. Make a selection on the map to go to the report for a market area or view an overview of each market area here..
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2025
Home Demand Index
The Home Demand Index (HDI) for the Washington D.C. metro area fell to 89 in the latest report, down from 98 the previous month. This ongoing decline reflects a typical seasonal slowdown, as buyer activity tends to ease during the later summer months. Still, demand remains higher than the same period last year, when the index stood at 82. The year-over-year increase points to a more active market overall, with buyer interest holding steady compared to last year.
Demand continues to soften across all home types in Washington D.C. for the second consecutive month, though levels remain higher than a year ago. The luxury single-family home segment experienced the largest decline but still shows the strongest year-over-year growth. Luxury condos also recorded notable decreases, while entry-level single-family homes and townhouses saw the smallest decline among all segments, with a 7% drop compared to the previous month. Overall, demand is moderating in the short term but remains above last year across most segments, highlighting the continued impact of limited inventory on market dynamics.
Monthly Statistics for August 2025
Home Demand
Index
Index
89
(Slow)
Home Demand Index
from prior month
from prior month
98
Home Demand Index
from prior year
from prior year
82
Index change
from prior month
from prior month
-9.2%
Index change from
same time last year
same time last year
8.5%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | August 2025
Home Demand Index
The Home Demand Index (HDI) for the Philadelphia metro area stands at 83 this month, reflecting a slight decrease from 87 in the previous report period. This month-over-month decline suggests a mild softening in buyer activity, potentially linked to late-summer seasonality or affordability constraints. However, the current index is nearly identical to the 82 recorded during the same period last year, signaling a steady market environment with relatively consistent buyer interest year-over-year.
Demand across home types in Philadelphia market moderated this report period, with most segments showing month-over-month declines. Notably, luxury single-family homes dipped from an index of 83 to 71, while entry level condos declined from 107 to 95. Despite the cooling trend, most home types remain at or above their year-ago levels, suggesting underlying market strength even amid near-term softening. These shifts reflect persistent inventory constraints and affordability pressures that continue to influence buyer behavior across price tiers.
Monthly Statistics for August 2025
Home Demand
Index
Index
83
(Slow)
Home Demand Index
from prior month
from prior month
87
Home Demand Index
from prior year
from prior year
82
Index change
from prior month
from prior month
-4.6%
Index change from
same time last year
same time last year
1.2%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Baltimore | August 2025
Home Demand Index
The Home Demand Index (HDI) for the Baltimore metro area currently stands at 89, reflecting a notable decrease from 95 last month and slightly below the 90 recorded during the same period last year. This month’s reading places the region in the Steady demand category, but the month-over-month dip suggests a seasonal cooling or increased buyer hesitancy amid affordability pressures. The minimal year-over-year change indicates that while demand has softened in the short term, market sentiment remains relatively stable compared to last summer.
Demand by home type in Baltimore reveals diverging trends this month. Entry-level single-family homes registered an index of 67, down from 71 last month, suggesting growing affordability challenges despite a slight improvement over last year. Mid-range single-family homes dipped to 91 from 97 but remain stronger than the 89 recorded a year ago, indicating sustained interest from move-up buyers. The luxury single-family segment declined to 114 from 130 but far exceeds last year’s 101, highlighting ongoing strength in the high-end market. Entry-level condos dropped to 114 from 124, though demand remains elevated versus last year’s 107, while luxury condos rose to 161 from 158, continuing to lead the market with persistent high demand. Townhouses decreased to 90 from 93 last month and 94 a year ago, indicating a modest decline in buyer interest for this versatile segment.
Monthly Statistics for August 2025
Home Demand
Index
Index
89
(Slow)
Home Demand Index
from prior month
from prior month
95
Home Demand Index
from prior year
from prior year
90
Index change
from prior month
from prior month
-6.3%
Index change from
same time last year
same time last year
-1.1%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com