What is the Home Demand Index?
The Home Demand Index (HDI) is the nation’s only local housing market index that tracks pre-sale activity to measure housing market competitiveness. The HDI uses data on pre-sale activities, including in-person showings of homes and views of homes online, to measure housing market activity across different geographies and types of homes. The data used to construct the HDI are the most accurate and up-to-date information from the real estate agents and prospective buyers and sellers that are active in the market.
While most housing market indices are based on history, the HDI provides forward-looking insights to real estate professionals and consumers to help make better decisions in a rapidly changing real estate market
Greater Metropolitan Market Areas
The Bright MLS |T3 Home Demand Index currently covers the three greater metropolitan market areas served by Bright MLS, namely the Greater Philadelphia Area (in blue), the Greater Washington D.C. Area (in gray), and the Greater Baltimore Area (in orange).
Colors are provided for visual identification of each market area and do not correlate to index activity level. Make a selection on the map to go to the report for a market area or view an overview of each market area here..
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | January 2026
Home Demand Index
The Home Demand Index (HDI) for the Washington D.C. metro area is at 51 for this report period, reflecting a decline from 70 in the previous month, which signals continued softer buyer activity. Compared with last year’s index of 51, demand is unchanged on an annual basis, indicating similar market conditions year over year. The market category falls under Limited, pointing to reduced buyer movement and quieter overall conditions.
Demand across home types in the Washington D.C. area is softening during this report period. Mid-market single-family homes show the largest pullback from last month, while entry-level single-family homes remain more resilient, slightly above year-ago levels. Luxury single-family homes see a notable decline compared with both last month and last year. Among attached homes, including townhouses, rowhouses, twin homes, and condos, demand is down across price points, with higher-priced condos posting the steepest year-over-year drop. Overall, demand is down due to limited inventory.
Monthly Statistics for January 2026
Home Demand
Index
Index
51
(Limited)
Home Demand Index
from prior month
from prior month
70
Home Demand Index
from prior year
from prior year
51
Index change
from prior month
from prior month
-27.1%
Index change from
same time last year
same time last year
0%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | January 2026
Home Demand Index
The Home Demand Index (HDI) for the Philadelphia metro area is 46 in this report period, down sharply from 64 last month and below the 50 reading a year ago. This decline indicates that buyer activity has softened notably, pushing the market further into the Limited demand range after stronger conditions through much of last year. The pullback suggests more cautious buyers and potentially longer selling times, as demand resets to a quieter start-of-year pace.
Demand by home type in Philadelphia continues to show increasing divergence this report period, with notable volatility across single-family segments. Entry-level single-family homes have softened compared with both last month and last year, reflecting ongoing affordability pressures in the most accessible detached segment. Mid-range and luxury single-family homes continue to experience irregular activity, likely driven by limited inventory rather than broad-based buyer interest. Entry-level condos maintain some support, while luxury condos have weakened. Townhouses also remain subdued, reflecting cautious buyer behavior across these segments. Overall, the market continues to reflect uneven demand, with buyers approaching decisions deliberately and selectively.
Monthly Statistics for January 2026
Home Demand
Index
Index
46
(Limited)
Home Demand Index
from prior month
from prior month
64
Home Demand Index
from prior year
from prior year
50
Index change
from prior month
from prior month
-28.1%
Index change from
same time last year
same time last year
-8%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Baltimore | January 2026
Home Demand Index
The Home Demand Index (HDI) for the Baltimore metro area stands at 55 in this report period, down from 73 last month and slightly below the 57 reading recorded one year ago. This latest move reinforces that the market is operating in a subdued demand environment, with buyer activity clearly weaker than both recent and prior-year benchmarks. The combination of a sharp month‑over‑month decline and a modest year‑over‑year shortfall points to affordability pressures and rate sensitivity weighing on purchasing decisions, with more households delaying moves or narrowing their search criteria.
The comparative chart for Baltimore shows that the decline in the overall Home Demand Index to 55 is being felt across all home types, with demand generally cooler than in recent periods but not uniformly weak. Entry-level single-family homes remain under the greatest pressure as first-time and value-oriented buyers confront tighter affordability and limited listings, while mid-range single-family homes show moderating but comparatively more resilient activity from established move-up households. Luxury single-family demand has also eased from prior highs, yet affluent buyers and cash purchasers continue to provide a measure of support that keeps this tier healthier than the entry segment. On the attached side, entry-level condos and luxury condos still tend to outperform detached product, with the former serving as an affordability alternative and the latter benefiting from lifestyle and amenity-driven demand, even if both have softened from earlier peaks. Townhouses, rowhouses, and twin homes show mild cooling consistent with the broader market, but their price-to-space value proposition and desirable locations help maintain a stable base of interest.
Monthly Statistics for January 2026
Home Demand
Index
Index
55
(Limited)
Home Demand Index
from prior month
from prior month
73
Home Demand Index
from prior year
from prior year
57
Index change
from prior month
from prior month
-24.7%
Index change from
same time last year
same time last year
-3.5%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com