August 2024 Report
Washington D.C. Metro
Washington D.C. | August 2024
Home Demand Index
The Home Demand Index (HDI) for this report period stands at 78, showing a slight increase from last month’s 77 but a noticeable decline from the previous year’s 84. This trend indicates a continued softening of market conditions, reflecting the broader challenges facing the market. The slight improvement from last month suggests some stabilization, but the year-over-year decline underscores ongoing economic concerns affecting buyer interest.
Buyer interest in various types of homes in the Washington D.C. metro area increased. The Index for entry level condos rose the most, up by 9%, followed by townhouses with a 5% increase. Demand was strongest for luxury single-family homes and condos, each attracting a steady level of buyer interest. Conversely, demand was weakest for entry-level single-family homes, mid-market single-family homes, and townhouses, with buyer interest categorized as slow. The months of supply were higher for most types of homes, ranging from 1.4 months for mid-market single-family homes to 3.4 months for luxury condos.
Monthly Statistics for August 2024
Home Demand
Index
Index
78
(Slow)
Home Demand Index
from prior month
from prior month
77
Home Demand Index
from prior year
from prior year
84
Index change
from prior month
from prior month
1.3%
Index change from
same time last year
same time last year
-7.1%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2024
Home Demand Index | Historical Year-over-Year Comparison
The Home Demand Index (HDI) for this report period stands at 78, showing a slight increase from last month’s index of 77 but still lower than the 84 recorded one year ago. This year-over-year decline reflects a continued softening in buyer interest, consistent with broader economic challenges. However, the modest month-over-month improvement may indicate some stabilization in the market as it adapts to ongoing conditions.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2024
Home Demand Map
Demand for homes was strongest in Alexandria City and Arlington County, both categorized as Moderate, indicating consistently strong buyer interest. This was followed by Falls Church City, classified as Steady, which reflects stable demand. In contrast, buyer interest was Limited in Fairfax City, Montgomery, and Frederick counties. The remaining areas across the metro area experienced Slow buyer interest. Demand shifted from Steady to Moderate in the Maryland-West Virginia Panhandle, indicating a healthy level of buyer activity. Southern Maryland shows Steady demand, suggesting a stable market. North Central Virginia continues to experience Slow buyer interest.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2024
Demand and Inventory by Home Type
Buyer interest in various types of homes in the Washington D.C. metro area increased. The Index for entry level condos rose the most, up by 9%, followed by townhouses with a 5% increase. Demand was strongest for luxury single-family homes and condos, each attracting a steady level of buyer interest. Conversely, demand was weakest for entry-level single-family homes, mid-market single-family homes, and townhouses, with buyer interest categorized as slow. The months of supply were higher for most types of homes, ranging from 1.4 months for mid-market single-family homes to 3.4 months for luxury condos.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2024
Single Family Home Below $542k
For single-family homes priced below $542K, the index stands at 70, marking a 3% increase from last month’s 68 but still below the previous year’s 75. The index shift from a Limited to a Slow pace of buyer interest reflects the modest improvement in market activity. The months supply of homes available for sale is 1.9 months, marginally up from 1.7 months the previous month. This slight increase in inventory, while still relatively low, indicates that the market is beginning to offer slightly more options for buyers. However, the overall Slow pace suggests that these additional options have not yet been sufficient to significantly boost buyer interest or fully stimulate market activity.
Monthly Statistics for Single Family Home Below $542k
Home Demand
Index
Index
70
(Slow)
Home Demand Index
from prior month
from prior month
68
Home Demand Index
from prior year
from prior year
75
Months of
inventory
inventory
1.9
Average daily inventory last month
820
Inventory sold
last month
last month
425
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2024
Single Family Home $542k - $1300k
In the mid-range market for single-family homes priced between $542k to $1.3M, the index stands at 72, reflecting a 1% decrease from the previous month’s 73 and a 6% decline from the previous year’s 77. This segment indicates a consistent Slow pace of buyer interest, suggesting a slowdown in market activity possibly influenced by economic conditions or seasonal factors affecting buyer confidence. The months of supply increased from 1.1 to 1.4 months compared to the previous period.
Monthly Statistics for Single Family Home $542k - $1300k
Home Demand
Index
Index
72
(Slow)
Home Demand Index
from prior month
from prior month
73
Home Demand Index
from prior year
from prior year
77
Months of
Inventory
Inventory
1.4
Average daily inventory last month
1,737
Inventory sold
last month
last month
1,249
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2024
Single Family Home Above $1300k
Luxury single-family homes priced above $1.3M have an HDI of 90, marking a 7% decrease from the previous month’s 97 and a 17% decline from the previous year’s 108. Buyer interest for this segment remained at a steady pace. The months supply increased to 2.2 months from 1.6 months the previous month. The decline in the HDI suggests reduced buyer enthusiasm in this high-end market segment, potentially due to affordability challenges or shifting market dynamics.
Monthly Statistics for Single Family Home Above $1300k
Home Demand
Index
Index
90
(Steady)
Home Demand Index
from prior month
from prior month
97
Home Demand Index
from prior year
from prior year
108
Months of
Inventory
Inventory
2.2
Average daily inventory last month
765
Inventory sold
last month
last month
349
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2024
Condo Below $580k
Condos priced below $580K exhibit an HDI of 95, marking a 9% increase from the previous month’s 87 and a 1% decline compared to the previous year’s 96. This segment shows unchanged buyer interest at a steady pace. The months supply increased to 2.6 months from 2.2 months the previous month. The rise in HDI suggests that recent improvements in market conditions or increased buyer confidence are driving up interest. The increase in inventory, while modest, provides a broader selection for buyers, which may be contributing to the stable demand despite the slight year-over-year decline.
Monthly Statistics for Condo Below $580k
Home Demand
Index
Index
95
(Steady)
Home Demand Index
from prior month
from prior month
87
Home Demand Index
from prior year
from prior year
96
Months of
Inventory
Inventory
2.6
Average daily inventory last month
1,807
Inventory sold
last month
last month
691
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2024
Condo Above $580k
For luxury condos priced above $580K, the index increased to 105, marking a 1% rise from the previous month’s 104 but a significant 21% decline compared to the previous year’s 133. This segment shows steady demand. The months supply of homes increased to 3.4 months from 3.0 months the previous month. The slight increase in the index indicates that despite the substantial year-over-year decline, there is a consistent interest in luxury condos.
Monthly Statistics for Condo Above $580k
Home Demand
Index
Index
105
(Steady)
Home Demand Index
from prior month
from prior month
104
Home Demand Index
from prior year
from prior year
133
Months of
Inventory
Inventory
3.4
Average daily inventory last month
452
Inventory sold
last month
last month
131
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2024
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
Demand Index for townhouses, rowhouses, and twins increased to 79 this month, up from 75 last month and down from 83 one year ago. This segment continues to reflect a Slow pace of buyer interest, indicative of market softness. The months supply of homes increased to 1.9 from 1.6 months the previous month, though it remains low despite the increase. This suggests that while more homes are entering the market, the overall supply is still insufficient to meet buyer demand fully, maintaining the competitive nature of the market.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
79
(Slow)
Home Demand Index
from prior month
from prior month
75
Home Demand Index
from prior year
from prior year
83
Months of
Inventory
Inventory
1.9
Average daily inventory last month
2,458
Inventory sold
last month
last month
1,305
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Note
1. This report is generated with data from the following counties:
- Maryland-West Virginia Panhandle – Allegany, MD; Berkeley, WV; Garrett, MD; Grant, WV; Hampshire, WV; Hardy, WV; Jefferson, WV; Mineral, WV; Morgan, WV; Pendleton, WV; Washington, MD;
- North Central Virginia – Caroline, VA; Clarke, VA; Culpeper, VA; Fauquier, VA; Frederick, VA; Fredericksburg City, VA; King George, VA; Madison, VA; Manassas City, VA; Orange, VA; Page, VA; Prince William, VA; Rappahannock, VA; Shenandoah, VA; Spotsylvania, VA; Stafford, VA; Warren, VA; Winchester City, VA;
- Southern Maryland – Calvert, MD; Charles, MD; Saint Marys, MD;
- Washington D.C. Metro – Alexandria City, VA; Arlington, VA; Fairfax, VA; Falls Church City, VA; Frederick, MD; Loudoun, VA; Montgomery, MD; Prince Georges, MD; Washington, DC;
2. This report is for the August 2024 period with data collected from the previous month.
Released: August 11, 2024
Reference ID: 2093
Washington D.C. | August 2024
Home Demand Map (Zip Codes)
Demand for homes was strongest in Alexandria City and Arlington County, both categorized as Moderate, indicating consistently strong buyer interest. This was followed by Falls Church City, classified as Steady, which reflects stable demand. In contrast, buyer interest was Limited in Fairfax City, Montgomery, and Frederick counties. The remaining areas across the metro area experienced Slow buyer interest. Demand shifted from Steady to Moderate in the Maryland-West Virginia Panhandle, indicating a healthy level of buyer activity. Southern Maryland shows Steady demand, suggesting a stable market. North Central Virginia continues to experience Slow buyer interest.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com