January 2025 Report
Washington D.C. Metro
Washington D.C. | January 2025
Home Demand Index
The current Home Demand Index (HDI) stands at 48, a significant decline from last month’s 69, but slightly higher than the 46 recorded during the same period last year. The drop from the previous month can be attributed to low inventory levels, which continue to limit buyer options and dampen market activity. Despite this short-term slowdown, the year-over-year increase suggests that demand remains stable, indicating that while current market conditions are challenging due to inventory constraints.
Demand for mid-market single-family homes decreased from 57 last month to 38 this period, showing a 6% increase compared to last year. Entry-level condos dropped from 88 last month to 66 this period, reflecting a 14% rise from last year. Luxury condos fell from 98 last month to 70 this period, with a 21% increase compared to last year. While town house decreased from 72 last month to 52 this period, they showed an 11% increase year-over-year. These trends suggest that certain market segments are holding strong despite the overall decline in demand from the previous month.
Monthly Statistics for January 2025
Home Demand
Index
Index
48
(Limited)
Home Demand Index
from prior month
from prior month
69
Home Demand Index
from prior year
from prior year
46
Index change
from prior month
from prior month
-30.4%
Index change from
same time last year
same time last year
4.3%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | January 2025
Home Demand Index | Historical Year-over-Year Comparison
The current HDI stands at 48, marking a substantial drop from the 69 recorded last month, but still showing a slight increase compared to last year’s figure of 46. This year-over-year similarity points to enduring buyer demand, despite potential economic fluctuations. The considerable drop from the previous month may indicate seasonal trends or increasing market pressures.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | January 2025
Home Demand Map
Demand across the region shows variation, with notable slowdowns in suburban and outlying areas, while core metro regions maintain moderate buyer interest. The trend highlights the persistent influence of inventory shortages and economic factors on regional market dynamics. Limited buyer engagement in less central areas suggests a cooling pattern in broader market activity.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | January 2025
Demand and Inventory by Home Type
Demand for mid-market single-family homes decreased from 57 last month to 38 this period, showing a 6% increase compared to last year. Entry-level condos dropped from 88 last month to 66 this period, reflecting a 14% rise from last year. Luxury condos fell from 98 last month to 70 this period, with a 21% increase compared to last year. While town house decreased from 72 last month to 52 this period, they showed an 11% increase year-over-year. These trends suggest that certain market segments are holding strong despite the overall decline in demand from the previous month.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | January 2025
Single Family Home Below $550k
The index for entry-level single-family homes is 49, down from 68 last month, but slightly higher than last year’s 52. This decline suggests a slowdown in buyer activity month-over-month, while the year-over-year comparison reflects some stability in demand. The category remains limited, with ongoing inventory shortages and affordability concerns continuing to influence market conditions.
Monthly Statistics for Single Family Home Below $550k
Home Demand
Index
Index
49
(Limited)
Home Demand Index
from prior month
from prior month
68
Home Demand Index
from prior year
from prior year
52
Months of
inventory
inventory
2.1
Average daily inventory last month
772
Inventory sold
last month
last month
367
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | January 2025
Single Family Home $550k - $1325k
The index for mid-range single-family homes stands at 38, a decrease from 57 last month but a slight increase compared to last year’s 36. This month-over-month decline suggests a reduction in buyer activity, while the year-over-year growth points to steady demand within this segment. Despite the recent drop, the market for mid-range homes remains relatively stable, with ongoing demand in this price tier.
Monthly Statistics for Single Family Home $550k - $1325k
Home Demand
Index
Index
38
(Limited)
Home Demand Index
from prior month
from prior month
57
Home Demand Index
from prior year
from prior year
36
Months of
Inventory
Inventory
1.5
Average daily inventory last month
1,228
Inventory sold
last month
last month
839
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | January 2025
Single Family Home Above $1325k
The index for luxury single-family homes is at 39, down from 61 last month and slightly lower than last year’s 42. This decline indicates a reduction in demand both month-over-month and year-over-year. The decrease may be attributed to market adjustments or seasonal trends, with demand for luxury homes showing a slight decline compared to the same period last year.
Monthly Statistics for Single Family Home Above $1325k
Home Demand
Index
Index
39
(Limited)
Home Demand Index
from prior month
from prior month
61
Home Demand Index
from prior year
from prior year
42
Months of
Inventory
Inventory
2.3
Average daily inventory last month
462
Inventory sold
last month
last month
201
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | January 2025
Condo Below $589k
The index for entry-level condos is at 66, down from 88 last month but up from last year’s 58. This month-over-month decline suggests a slowdown in demand, likely influenced by seasonal factors or changing market conditions. However, the year-over-year increase highlights a stronger market for entry-level condos compared to the same period last year, reflecting ongoing buyer interest despite recent cooling.
Monthly Statistics for Condo Below $589k
Home Demand
Index
Index
66
(Limited)
Home Demand Index
from prior month
from prior month
88
Home Demand Index
from prior year
from prior year
58
Months of
Inventory
Inventory
3.1
Average daily inventory last month
1,710
Inventory sold
last month
last month
556
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | January 2025
Condo Above $589k
The index for luxury-level condos is at 70, down from 98 last month but significantly higher than last year’s 58. While the month-over-month decline indicates a slowdown in demand, the year-over-year increase shows a positive trend for luxury condos compared to the same period last year. This shift from steady to slow reflects a cooling in buyer interest, potentially influenced by market adjustments or affordability challenges. Despite the recent decline, the luxury condo segment remains stronger than it was a year ago.
Monthly Statistics for Condo Above $589k
Home Demand
Index
Index
70
(Slow)
Home Demand Index
from prior month
from prior month
98
Home Demand Index
from prior year
from prior year
58
Months of
Inventory
Inventory
4.1
Average daily inventory last month
382
Inventory sold
last month
last month
94
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | January 2025
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
The index for townhouses is at 52, down from 72 last month but higher than last year’s 47. The decline from last month indicates a reduction in demand, while the year-over-year increase suggests a stronger market compared to the same period last year. This highlights a more stable level of interest in townhouses, despite the recent dip, and points to ongoing buyer activity in this segment.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
52
(Limited)
Home Demand Index
from prior month
from prior month
72
Home Demand Index
from prior year
from prior year
47
Months of
Inventory
Inventory
2
Average daily inventory last month
2,150
Inventory sold
last month
last month
1,087
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 January 2025 period with data collected from the previous month.
Released: January 10, 2025
Reference ID: 2175
Washington D.C. | January 2025
Home Demand Map (Zip Codes)
Demand across the region shows variation, with notable slowdowns in suburban and outlying areas, while core metro regions maintain moderate buyer interest. The trend highlights the persistent influence of inventory shortages and economic factors on regional market dynamics. Limited buyer engagement in less central areas suggests a cooling pattern in broader market activity.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com