February 2023 Report
Washington D.C. Metro
Washington D.C. | February 2023
Home Demand Index
Demand for homes in the Washington Metro area rose in January. The Bright MLS | T3 Home Demand Index was up 24.6 percent over the month, reflecting a Slow pace of buyer activity. The Index was 16.5 percent lower than one year earlier.
Demand for all types of homes rose in January. The Index for luxury single-family homes and luxury condos increased the most, each up by roughly 50 percent over the month. Buyer interest was strongest for luxury condos, those priced above $570,000, with demand in the Steady category. Demand for all other types of homes was Slow or Limited. The months supply ranged from 2.4 months for mid-priced single-family homes and townhouses to 5.5 months for luxury condos.
Monthly Statistics for February 2023
Home Demand
Index
Index
71
(Slow)
Home Demand Index
from prior month
from prior month
57
Home Demand Index
from prior year
from prior year
85
Index change
from prior month
from prior month
24.6%
Index change from
same time last year
same time last year
-16.5%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2023
Home Demand Index | Historical Year-over-Year Comparison
After decreasing steadily from September through December, demand for homes in the Washington Metro area increased in January. The rise was consistent with the expected seasonal pattern of somewhat greater buyer interest at the start of the year. Demand remained below the year-earlier level largely due to higher mortgage rates, which worsened already deteriorating affordability for many would-be homebuyers.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2023
Home Demand Map
Buyer interest was Moderate in Arlington County and Alexandria City and Slow in Washington DC and in Prince Georges, and Fairfax counties. Activity was Limited in the rest of the metro area. Demand was Steady in the Southern Maryland and Maryland-West Virginia Panhandle market areas and Limited in the North Central Virginia region. Across the Greater Washington Area, demand in slightly fewer than one-in-five ZIP codes was the High or Moderate category, an increase from less than one- in-ten10 communities in December. Half of ZIP codes exhibited Limited buyer demand.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2023
Demand and Inventory by Home Type
Demand for all types of homes rose in January. The Index for luxury single-family homes and luxury condos increased the most, each up by roughly 50 percent over the month. Buyer interest was strongest for luxury condos, those priced above $570,000, with demand in the Steady category. Demand for all other types of homes was Slow or Limited. The months supply ranged from 2.4 months for mid-priced single-family homes and townhouses to 5.5 months for luxury condos.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2023
Single Family Home Below $520k
Demand for entry-level single-family homes on the market for less than $520,000 rose in January with the Bright MLS | T3 Home Demand Index increasing to 78, a level of buyer interest in the Slow range. Compared with one year earlier the Index was unchanged, unlike all other segments which were lower than the year-earlier mark. There was a 2.9 months supply of inventory.
Monthly Statistics for Single Family Home Below $520k
Home Demand
Index
Index
78
(Slow)
Home Demand Index
from prior month
from prior month
69
Home Demand Index
from prior year
from prior year
78
Months of
inventory
inventory
2.9
Average daily inventory last month
828
Inventory sold
last month
last month
286
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2023
Single Family Home $520k - $1225k
Demand for mid-level single-family homes in the $520,000 to $1,225,000 range remained in the Limited category despite an increase in the Index by one-third to 64. Buyer interest was, however, nearly unchanged from the year-earlier level. There was a 2.4 months supply of homes on the market.
Monthly Statistics for Single Family Home $520k - $1225k
Home Demand
Index
Index
64
(Limited)
Home Demand Index
from prior month
from prior month
48
Home Demand Index
from prior year
from prior year
69
Months of
Inventory
Inventory
2.4
Average daily inventory last month
1,199
Inventory sold
last month
last month
504
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2023
Single Family Home Above $1225k
Buyer interest in luxury single-family homes over $1,225,000 in price was weaker than any other type of home in the Washington Metro area in January. The Index, at 60, remained in the Limited demand category despite a 50 percent jump over the month. The Index was also one-third lower than the year-earlier level. The months supply at 3.4 was higher than the other lower-priced single-family segments.
Monthly Statistics for Single Family Home Above $1225k
Home Demand
Index
Index
60
(Limited)
Home Demand Index
from prior month
from prior month
40
Home Demand Index
from prior year
from prior year
88
Months of
Inventory
Inventory
3.4
Average daily inventory last month
367
Inventory sold
last month
last month
108
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2023
Condo Below $570k
Buyer interest in entry-level condos was in the Slow range in January with an Index at 82, an increase of 20 percent compared with December. Although rising over the month, demand was below the year-early level. There was a 2.9 months supply of homes on the market, an increase from 2.3 months in December.
Monthly Statistics for Condo Below $570k
Home Demand
Index
Index
82
(Slow)
Home Demand Index
from prior month
from prior month
68
Home Demand Index
from prior year
from prior year
112
Months of
Inventory
Inventory
2.9
Average daily inventory last month
1,154
Inventory sold
last month
last month
394
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2023
Condo Above $570k
Demand for homes in the luxury condo segment rose by nearly half in January compared with December. The Index, at 106, was consistent with a Steady pace of demand. While rising on a month-to-month basis, demand fell short of the High level of buyer interest one year earlier. The months supply was up marginally to 5.5 months, a higher level than other types of homes in the Washington Metro market.
Monthly Statistics for Condo Above $570k
Home Demand
Index
Index
106
(Steady)
Home Demand Index
from prior month
from prior month
72
Home Demand Index
from prior year
from prior year
155
Months of
Inventory
Inventory
5.5
Average daily inventory last month
313
Inventory sold
last month
last month
57
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2023
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
The Bright MLS | T3 Home Demand Index for townhouses rose 22 percent to 71, a level marking a Slow pace of buyer interest. The Index was also 20 percent lower than one year earlier. The months supply rose to 2.4 months from 2.1 months in December.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
71
(Slow)
Home Demand Index
from prior month
from prior month
58
Home Demand Index
from prior year
from prior year
89
Months of
Inventory
Inventory
2.4
Average daily inventory last month
1,709
Inventory sold
last month
last month
723
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 February 2023 period with data collected from the previous month.
Released: February 3, 2023
Reference ID: 1770
Washington D.C. | February 2023
Home Demand Map (Zip Codes)
Buyer interest was Moderate in Arlington County and Alexandria City and Slow in Washington DC and in Prince Georges, and Fairfax counties. Activity was Limited in the rest of the metro area. Demand was Steady in the Southern Maryland and Maryland-West Virginia Panhandle market areas and Limited in the North Central Virginia region. Across the Greater Washington Area, demand in slightly fewer than one-in-five ZIP codes was the High or Moderate category, an increase from less than one- in-ten10 communities in December. Half of ZIP codes exhibited Limited buyer demand.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com