June 2023 Report
Washington D.C. Metro
Washington D.C. | June 2023
Home Demand Index
Demand for homes in the Washington Metro area fell 7.4 percent according to the Bright MLS | T3 Home Demand Index. The Index, at 88, reflected a Slow pace of buyer interest, down from a Steady level of demand in April. Compared with one year earlier, the Index was 25.4 percent lower.
Demand for different types of homes was mixed in May. The Index rose marginally for luxury single-family homes and entry-level condos but was lower among all other segments of the market. Demand was strongest for luxury single-family homes and luxury condos, both of which attracted a High level of demand. Buyer interest was weakest for entry-level and mid-market single-family homes, each with Slow demand. The months supply fell for each type of Washington Metro area home, reflecting a rise in sales and only a small increase in listings on the market. The months supply ranged from one month for mid-market single-family homes to 2.9 months for luxury condos.
Monthly Statistics for June 2023
Home Demand
Index
Index
88
(Slow)
Home Demand Index
from prior month
from prior month
95
Home Demand Index
from prior year
from prior year
118
Index change
from prior month
from prior month
-7.4%
Index change from
same time last year
same time last year
-25.4%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | June 2023
Home Demand Index | Historical Year-over-Year Comparison
The May decrease in demand followed four months of consecutive increases. Demand was well below the pace set last spring, however, as homebuyers faced higher mortgage rates and limited inventory along with ongoing speculation about the likelihood of an economic slowdown as the Fed attempts to tamp down elevated inflation.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | June 2023
Home Demand Map
Buyer interest was High in Arlington County, Alexandria City and Falls Church City. The Index was in the Limited category in Frederick County and at a somewhat stronger pace of Slow or Steady in the rest of the metro area. Demand was Moderate in Southern Maryland and the Maryland-West Virginia Panhandle market areas and Slow in the North Central Virginia region. Across the Greater Washington area, demand in 28 percent of ZIP codes was in the High or Moderate range, while buyer interest in just over half of communities was in the Slow or Limited category.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | June 2023
Demand and Inventory by Home Type
Demand for different types of homes was mixed in May. The Index rose marginally for luxury single-family homes and entry-level condos but was lower among all other segments of the market. Demand was strongest for luxury single-family homes and luxury condos, both of which attracted a High level of demand. Buyer interest was weakest for entry-level and mid-market single-family homes, each with Slow demand. The months supply fell for each type of Washington Metro area home, reflecting a rise in sales and only a small increase in listings on the market. The months supply ranged from one month for mid-market single-family homes to 2.9 months for luxury condos.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | June 2023
Single Family Home Below $505k
The Bright MLS | T3 Home Demand Index for entry-level single-family homes, at 77, was down slightly from the month before and was 22 percent lower than one year earlier. Demand remained in the Slow category, however. The months supply of homes for sale decreased from 1.6 to 1.4 months, continuing a period of very tight inventory conditions.
Monthly Statistics for Single Family Home Below $505k
Home Demand
Index
Index
77
(Slow)
Home Demand Index
from prior month
from prior month
84
Home Demand Index
from prior year
from prior year
99
Months of
inventory
inventory
1.4
Average daily inventory last month
668
Inventory sold
last month
last month
462
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | June 2023
Single Family Home $505k - $1190k
Demand for mid-market single-family homes softened in May with the Index down by 13 percent to 80, reflecting a Slow pace of buyer interest. Compared with one year earlier, the Index was one-third lower, the largest year-to-year shortfall among different types of Washington Metro area homes. There was a one month supply of homes on the market, a decrease from 1.2 months in April, and lower than any other segment of the metro area market.
Monthly Statistics for Single Family Home $505k - $1190k
Home Demand
Index
Index
80
(Slow)
Home Demand Index
from prior month
from prior month
92
Home Demand Index
from prior year
from prior year
119
Months of
Inventory
Inventory
1
Average daily inventory last month
1,387
Inventory sold
last month
last month
1,389
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | June 2023
Single Family Home Above $1190k
Although demand among other lower-priced segments of the single-family market decreased in May, buyer interest in luxury single-family homes rose. The Index, at 134, reflected a High level of demand and was six percent above the April reading. The months supply decreased to 1.9 months from 2.2 months in April with both sales and the number of listings higher over the month.
Monthly Statistics for Single Family Home Above $1190k
Home Demand
Index
Index
134
(High)
Home Demand Index
from prior month
from prior month
126
Home Demand Index
from prior year
from prior year
168
Months of
Inventory
Inventory
1.9
Average daily inventory last month
693
Inventory sold
last month
last month
358
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | June 2023
Condo Below $560k
Demand for entry-level condos was virtually unchanged in May. The Index, at 99, was consistent with a Steady pace of demand. There was a 1.6 months supply of homes on the market, a slight decrease from April as both sales and listings increased over the month.
Monthly Statistics for Condo Below $560k
Home Demand
Index
Index
99
(Steady)
Home Demand Index
from prior month
from prior month
98
Home Demand Index
from prior year
from prior year
125
Months of
Inventory
Inventory
1.6
Average daily inventory last month
1,227
Inventory sold
last month
last month
754
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | June 2023
Condo Above $560k
Luxury condo demand softened over the month but remained in the High demand category. The Index, at 141, was down 12 percent over the month and one-fifth lower than the year before. The inventory of homes for sale, at 2.9 months supply, was down from 3.5 months in April but was still greater than any other segment of the metro market.
Monthly Statistics for Condo Above $560k
Home Demand
Index
Index
141
(High)
Home Demand Index
from prior month
from prior month
160
Home Demand Index
from prior year
from prior year
174
Months of
Inventory
Inventory
2.9
Average daily inventory last month
444
Inventory sold
last month
last month
153
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | June 2023
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
Demand for townhouses eased in May with the Bright MLS | T3 Home Demand Index decreasing by 10 percent to 83, a pace consistent with Slow buyer interest. The inventory of townhouses on the market was very lean in May with just 1.3 months supply, lower than any other type of home except mid-market single-family homes.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
83
(Slow)
Home Demand Index
from prior month
from prior month
92
Home Demand Index
from prior year
from prior year
115
Months of
Inventory
Inventory
1.3
Average daily inventory last month
1,767
Inventory sold
last month
last month
1,410
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 June 2023 period with data collected from the previous month.
Released: June 11, 2023
Reference ID: 1845
Washington D.C. | June 2023
Home Demand Map (Zip Codes)
Buyer interest was High in Arlington County, Alexandria City and Falls Church City. The Index was in the Limited category in Frederick County and at a somewhat stronger pace of Slow or Steady in the rest of the metro area. Demand was Moderate in Southern Maryland and the Maryland-West Virginia Panhandle market areas and Slow in the North Central Virginia region. Across the Greater Washington area, demand in 28 percent of ZIP codes was in the High or Moderate range, while buyer interest in just over half of communities was in the Slow or Limited category.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com