May 2023 Report
Washington D.C. Metro
Washington D.C. | May 2023
Home Demand Index
The Bright MLS | T3 Home Demand Index for the Washington Metro area rose 3.4 percent in April to 90, a level that is consistent with a Steady pace of buyer demand. Although marking the fourth consecutive monthly increase, the Index was 29.1 percent lower than one year earlier.
Buyer interest in entry-level condos was down marginally, while the Index for all other segments rose slightly. The Index was well below the year-earlier level across all segments with luxury single-family homes 40 percent lower, more than any other segment of the metro market. Demand was strongest for luxury condos, which continued to attract a High level of buyer interest, and in the Moderate category for luxury single-family homes. Buyer interest was in the Slow or Steady range for all other segments of the market. The months supply changed little in April compared with March but remained relatively lean among most segments of the market. The months supply ranged from 1.2 months for mid-market single-family homes to 3.5 months for luxury condos.
Monthly Statistics for May 2023
Home Demand
Index
Index
90
(Steady)
Home Demand Index
from prior month
from prior month
87
Home Demand Index
from prior year
from prior year
127
Index change
from prior month
from prior month
3.4%
Index change from
same time last year
same time last year
-29.1%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | May 2023
Home Demand Index | Historical Year-over-Year Comparison
Demand for homes in the Washington Metro area has risen at a subdued pace since the start of the year. Overall, the Index increased 58 percent since the December low, which is markedly lower than the 84 percent increase over the same period one year earlier. Home shoppers continue to be challenged by relatively low inventory for most types of homes along with higher mortgage rates that limit affordability for some would-be buyers.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | May 2023
Home Demand Map
Buyer interest remained High in Arlington County and was at a Moderate pace in Alexandria City and Fall 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. Demand for homes was in the High or Moderate range in 28 percent of the ZIP codes in the Greater Washington area and Limited in more than one-third of ZIP codes.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | May 2023
Demand and Inventory by Home Type
Buyer interest in entry-level condos was down marginally, while the Index for all other segments rose slightly. The Index was well below the year-earlier level across all segments with luxury single-family homes 40 percent lower, more than any other segment of the metro market. Demand was strongest for luxury condos, which continued to attract a High level of buyer interest, and in the Moderate category for luxury single-family homes. Buyer interest was in the Slow or Steady range for all other segments of the market. The months supply changed little in April compared with March but remained relatively lean among most segments of the market. The months supply ranged from 1.2 months for mid-market single-family homes to 3.5 months for luxury condos.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | May 2023
Single Family Home Below $504k
Demand for entry-level single-family homes remained in the Slow category in April. The Bright MLS | T3 Home Demand Index rose marginally over the month to 80. At the same time, the supply of homes on the market was just 1.6 months indicating that would-be buyers’ home search will remain challenging at this price point.
Monthly Statistics for Single Family Home Below $504k
Home Demand
Index
Index
80
(Slow)
Home Demand Index
from prior month
from prior month
75
Home Demand Index
from prior year
from prior year
98
Months of
inventory
inventory
1.6
Average daily inventory last month
644
Inventory sold
last month
last month
400
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | May 2023
Single Family Home $504k - $1195k
Buyer interest in mid-market single-family homes rose marginally in April. The Index, at 86, reflected a Slow pace of buyer activity. Demand was in the Moderate category last year, which is consistent with the broadly lower level of demand this year across all segments of the market. There was a 1.2 months supply of homes on the market, lower than any other segment of the Washington Metro area market.
Monthly Statistics for Single Family Home $504k - $1195k
Home Demand
Index
Index
86
(Slow)
Home Demand Index
from prior month
from prior month
82
Home Demand Index
from prior year
from prior year
122
Months of
Inventory
Inventory
1.2
Average daily inventory last month
1,289
Inventory sold
last month
last month
1,082
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | May 2023
Single Family Home Above $1195k
The Bright MLS | T3 Home Demand Index for luxury single-family homes strengthened to Moderate from Steady over the month. The Index was still 40 percent lower than one year earlier, a larger gap than any other segment of the Washington Metro area market. The months supply of homes was at 2.2 months, relatively low, but still higher than the other lower priced single-family segments.
Monthly Statistics for Single Family Home Above $1195k
Home Demand
Index
Index
118
(Moderate)
Home Demand Index
from prior month
from prior month
108
Home Demand Index
from prior year
from prior year
196
Months of
Inventory
Inventory
2.2
Average daily inventory last month
573
Inventory sold
last month
last month
262
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | May 2023
Condo Below $557k
Demand for entry-level condos softened in April, the only segment of the Washington Metro area market to show a decrease in the Index over the month. The Index, at 93, was consistent with Steady buyer demand. In comparison, buyer interest was in the High category one year ago. There was a 1.8 months supply of homes on the market.
Monthly Statistics for Condo Below $557k
Home Demand
Index
Index
93
(Steady)
Home Demand Index
from prior month
from prior month
95
Home Demand Index
from prior year
from prior year
138
Months of
Inventory
Inventory
1.8
Average daily inventory last month
1,156
Inventory sold
last month
last month
637
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | May 2023
Condo Above $557k
Demand for luxury condos rose in April from an already elevated level reflecting High demand. The Index, at 153, rose six percent over the month and was just 15 percent lower than one year earlier, a smaller gap than any other segment of the metro area market. There was a 3.5 months supply of homes for sale, greater than any other type of home in the Washington Metro area market.
Monthly Statistics for Condo Above $557k
Home Demand
Index
Index
153
(High)
Home Demand Index
from prior month
from prior month
145
Home Demand Index
from prior year
from prior year
179
Months of
Inventory
Inventory
3.5
Average daily inventory last month
419
Inventory sold
last month
last month
121
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | May 2023
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
Buyer interest in townhouses changed little over the month. The Index, at 87, reflected a Slow pace of demand. The months supply, at 1.5 months was unchanged from March and lower than any other segments except mid-market single-family homes.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
87
(Slow)
Home Demand Index
from prior month
from prior month
85
Home Demand Index
from prior year
from prior year
126
Months of
Inventory
Inventory
1.5
Average daily inventory last month
1,762
Inventory sold
last month
last month
1,188
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 May 2023 period with data collected from the previous month.
Released: May 11, 2023
Reference ID: 1828
Washington D.C. | May 2023
Home Demand Map (Zip Codes)
Buyer interest remained High in Arlington County and was at a Moderate pace in Alexandria City and Fall 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. Demand for homes was in the High or Moderate range in 28 percent of the ZIP codes in the Greater Washington area and Limited in more than one-third of ZIP codes.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com