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 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
Philadelphia | January 2025
Home Demand Index
The Home Demand Index (HDI) for this report stands at 49, a decline from last month’s 69 and slightly lower than the 50 recorded during the same period last year. This decrease reflects continued cooling in market conditions, likely driven by economic pressures and seasonal factors. Despite the softer month-over-month trend, year-over-year demand remains relatively stable.
Demand for entry-level single-family homes decreased, with the index dropping from 73 last month to 53, remaining consistent with last year. Luxury condos also saw a decline, dropping from 86 last month to 63, but still showing an improvement compared to last year. Overall, demand has decreased from last month, reflecting a broader trend of reduced buyer interest across various segments, despite year-over-year improvement in the luxury condo market.
Monthly Statistics for January 2025
Home Demand
Index
Index
49
(Limited)
Home Demand Index
from prior month
from prior month
69
Home Demand Index
from prior year
from prior year
50
Index change
from prior month
from prior month
-29%
Index change from
same time last year
same time last year
-2%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Baltimore | January 2025
Home Demand Index
The Home Demand Index (HDI) for Baltimore stands at 55 this report period, a sharp decrease from last month’s 74 and slightly below last year’s 56. This decline indicates a significant cooling in buyer activity compared to the previous month, reflecting a subdued market environment. Persistent inventory constraints and fluctuating economic conditions continue to shape the market dynamics.
Entry-level single-family homes show stagnant demand, constrained by affordability challenges and low inventory. Luxury condos maintain the highest buyer interest, though demand has slightly cooled from the previous month. Mid-market and luxury single-family homes reflect the most significant declines, while entry-level condos shifted from slow to limited demand. Townhouses also moved from slow to limited demand. Overall, during this report period, the housing market is experiencing a decline in demand, leading to mixed market conditions across various home types.
Monthly Statistics for January 2025
Home Demand
Index
Index
55
(Limited)
Home Demand Index
from prior month
from prior month
74
Home Demand Index
from prior year
from prior year
56
Index change
from prior month
from prior month
-25.7%
Index change from
same time last year
same time last year
-1.8%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com