February 2025 Report
Washington D.C. Metro
Washington D.C. | February 2025
Home Demand Index
The Home Demand Index (HDI) for this report period is 63, showing an increase from last month’s 50. However, it remains slightly below last year’s index of 64. This suggests a moderate shift in market conditions, with month-over-month growth, yet a slight dip in demand compared to the previous year. The stability of the index reflects steady buyer interest, despite economic pressures, indicating that the market remains resilient overall.
Demand has increased across all home segments in the Washington metro area. Luxury condos saw the most significant increase, rising from 74 to 111, likely driven by a surge in buyer interest for high-end properties. Entry-level condos followed, climbing from 67 to 86. Townhouses rose from 53 to 64, while luxury single-family homes increased from 40 to 60. Mid-market homes rose from 51 to 59, and entry-level single-family homes saw a rise from 51 to 59. This broad uptick signals a market recovery, with the most notable increases in luxury condos and entry-level condos.
Monthly Statistics for February 2025
Home Demand
Index
Index
63
(Limited)
Home Demand Index
from prior month
from prior month
50
Home Demand Index
from prior year
from prior year
64
Index change
from prior month
from prior month
26%
Index change from
same time last year
same time last year
-1.6%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2025
Home Demand Index | Historical Year-over-Year Comparison
The Home Demand Index (HDI) for this period stands at 63, showing an increase from last month’s 50, but a slight decrease from last year’s 64. The year-over-year decline suggests a slight dip in demand, while the month-over-month improvement indicates a rebound in buyer activity. This increase could be driven by seasonal trends, favorable economic conditions, or changes in affordability. Overall, the market remains relatively stable, with demand levels largely unchanged despite some fluctuations.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2025
Home Demand Map
Buyer demand has increased across all metro areas during this report period, reflecting a recovery from previous reports. Activity has picked up in both core regions and suburban or outlying areas, signaling broader market improvement. This surge in demand suggests a rebound, likely fueled by enhanced affordability and better market conditions. The overall momentum has strengthened, with renewed interest across all regions, indicating that inventory shortages are still impacting trends but are less restrictive compared to earlier periods.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2025
Demand and Inventory by Home Type
Demand has increased across all home segments in the Washington metro area. Luxury condos saw the most significant increase, rising from 74 to 111, likely driven by a surge in buyer interest for high-end properties. Entry-level condos followed, climbing from 67 to 86. Townhouses rose from 53 to 64, while luxury single-family homes increased from 40 to 60. Mid-market homes rose from 51 to 59, and entry-level single-family homes saw a rise from 51 to 59. This broad uptick signals a market recovery, with the most notable increases in luxury condos and entry-level condos.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2025
Single Family Home Below $552k
The entry-level single-family home index now stands at 59, up from last month’s 51 but down from last year’s 66. This shift indicates a moderate increase in buyer activity compared to the previous month, yet it remains below last year’s levels. The steady demand in this segment, along with constrained inventory, continues to fuel competitive market conditions. Despite broader market fluctuations, buyer interest remains resilient in the entry-level single-family home sector.
Monthly Statistics for Single Family Home Below $552k
Home Demand
Index
Index
59
(Limited)
Home Demand Index
from prior month
from prior month
51
Home Demand Index
from prior year
from prior year
66
Months of
inventory
inventory
2.7
Average daily inventory last month
713
Inventory sold
last month
last month
269
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2025
Single Family Home $552k - $1330k
The index for mid-range single-family homes is 51, up from last month’s 39 but slightly down from last year’s 52. This increase from last month signals a modest rebound in buyer interest, although demand is still below last year’s level. Despite the slight improvement, limited inventory in this segment continues to restrict market activity, resulting in relatively weak competition for mid-range homes. The market shows signs of recovery, but inventory constraints persist as a key factor limiting broader demand.
Monthly Statistics for Single Family Home $552k - $1330k
Home Demand
Index
Index
51
(Limited)
Home Demand Index
from prior month
from prior month
39
Home Demand Index
from prior year
from prior year
52
Months of
Inventory
Inventory
1.9
Average daily inventory last month
1,005
Inventory sold
last month
last month
529
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2025
Single Family Home Above $1330k
The index for luxury single-family homes is 60, up from last month’s 40 but slightly down from last year’s 69. This increase from last month indicates a rebound in buyer interest, yet demand remains lower than last year’s levels. The decline compared to the previous year suggests that the luxury home segment is still facing challenges, possibly due to affordability constraints or shifting market conditions.
Monthly Statistics for Single Family Home Above $1330k
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
69
Months of
Inventory
Inventory
2.8
Average daily inventory last month
391
Inventory sold
last month
last month
139
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2025
Condo Below $590k
The entry-level condo index stands at 86, up from last month’s 67 and an increase from last year’s 82. This demand reflects sustained buyer interest in affordable condos, showing improvement from last year. Although there was slight softening from the previous month, the year-over-year increase highlights the continued resilience of the entry-level condo market. Despite broader economic fluctuations, this segment remains a stable option for buyers seeking affordability.
Monthly Statistics for Condo Below $590k
Home Demand
Index
Index
86
(Slow)
Home Demand Index
from prior month
from prior month
67
Home Demand Index
from prior year
from prior year
82
Months of
Inventory
Inventory
3.5
Average daily inventory last month
1,609
Inventory sold
last month
last month
455
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2025
Condo Above $590k
The luxury condo index stands at 111, showing a significant increase from last month’s 74 and a modest rise from last year’s 98. This notable month-over-month growth indicates a positive shift in demand for luxury condos, signaling renewed interest in this segment. The year-over-year growth further supports a strengthening market, suggesting that despite any economic challenges, buyer interest in luxury condos is increasing, reflecting a recovery and stabilization in the market.
Monthly Statistics for Condo Above $590k
Home Demand
Index
Index
111
(Moderate)
Home Demand Index
from prior month
from prior month
74
Home Demand Index
from prior year
from prior year
98
Months of
Inventory
Inventory
4.6
Average daily inventory last month
357
Inventory sold
last month
last month
78
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | February 2025
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
The index for townhouses, rowhouses, and twins stands at 64 for this report period, up from last month’s 53 and slightly above last year’s 63. Despite this increase, buyer interest remains relatively limited, reflecting broader market softness. While the month-over-month gain suggests some positive movement, inventory remains low, which may continue to constrain buyer activity.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
64
(Limited)
Home Demand Index
from prior month
from prior month
53
Home Demand Index
from prior year
from prior year
63
Months of
Inventory
Inventory
2.6
Average daily inventory last month
1,854
Inventory sold
last month
last month
714
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 2025 period with data collected from the previous month.
Released: February 10, 2025
Reference ID: 2194
Washington D.C. | February 2025
Home Demand Map (Zip Codes)
Buyer demand has increased across all metro areas during this report period, reflecting a recovery from previous reports. Activity has picked up in both core regions and suburban or outlying areas, signaling broader market improvement. This surge in demand suggests a rebound, likely fueled by enhanced affordability and better market conditions. The overall momentum has strengthened, with renewed interest across all regions, indicating that inventory shortages are still impacting trends but are less restrictive compared to earlier periods.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com