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. | December 2025
Home Demand Index
The Home Demand Index (HDI) for the Washington D.C. metro area is at 67 during this report period, showing a noticeable drop from 88 in the previous month. This shift points to softer buyer activity overall. Compared with last year’s index of 70, demand is slightly lower on an annual basis, indicating a mild pullback from the same period. The market category falls under Limited, indicating quieter conditions and reduced buyer movement.
Demand across home types in Washington D.C. is softening this period, with a sharp surge in mid-range single-family activity relative to last month. Entry-level single-family demand remains comparatively restrained versus recent levels, though it is positioned more favorably than a year ago. Luxury single-family homes show the steepest decline, while attached homes, including townhouses, rowhouses, and twin homes, and condos also post notable declines. The spread between mid-range and entry-level performance suggests buyers are concentrating more heavily in move-up price points where inventory and value alignment may be improving.
Monthly Statistics for December 2025
Home Demand
Index
Index
67
(Limited)
Home Demand Index
from prior month
from prior month
88
Home Demand Index
from prior year
from prior year
70
Index change
from prior month
from prior month
-23.9%
Index change from
same time last year
same time last year
-4.3%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | December 2025
Home Demand Index
The Home Demand Index (HDI) for the Philadelphia metro area is 62 this report period, down from 81 last month, signaling a clear month-over-month cooling in buyer activity. Demand is also below last year’s reading of 70, indicating softer conditions on an annual basis. With the index now in a slower range, overall market momentum appears to be easing as buyers remain cautious.
Demand by home type in Philadelphia shows growing divergence this period, led by a meaningful step-down in entry-level single-family activity from last month. Entry-level single-family demand is now lower than both last month and last year, indicating affordability is no longer providing the same level of support as it did earlier in 2025. Mid-range single-family metrics appear highly volatile in the provided data, but the broader pattern suggests a market where move-up demand is softer and increasingly dependent on limited, well-priced inventory. Luxury single-family homes are also seeing weaker demand, while lower-priced condos are slowing and higher-priced condos are holding relatively steadier. Townhomes, rowhouses, and twins continue to experience a moderate slowdown, consistent with broader trends across the market.
Monthly Statistics for December 2025
Home Demand
Index
Index
62
(Limited)
Home Demand Index
from prior month
from prior month
81
Home Demand Index
from prior year
from prior year
70
Index change
from prior month
from prior month
-23.5%
Index change from
same time last year
same time last year
-11.4%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Baltimore | December 2025
Home Demand Index
The Home Demand Index (HDI) for the Baltimore metro area stands at 71 for this report period, down sharply from 88 last month and slightly below the 75 recorded a year ago. This move pushes the market deeper into the Slow demand range, signaling a meaningful late-year pullback in buyer activity. The year-over-year softening suggests affordability and rate sensitivity are reasserting pressure, even as underlying demand has been more durable through much of 2025.
Demand by home type in Baltimore shows broad-based cooling this period, aligning with the metro’s overall shift lower. Entry-level single-family homes appear weakest, as first-time buyers face the greatest affordability constraints and are most sensitive to rate and payment volatility. Mid-range single-family homes are moderating but remain a relative anchor of move-up activity compared with other segments. Luxury single-family homes have also cooled from recent highs, though high-end participation remains more resilient than the entry tier. Condos continue to outperform detached categories—entry-level condos holding up as an affordability alternative and luxury condos remaining the most competitive segment—while townhouses/rowhouses are easing with seasonal slowing but still benefit from their price-to-space value proposition.
Monthly Statistics for December 2025
Home Demand
Index
Index
71
(Slow)
Home Demand Index
from prior month
from prior month
88
Home Demand Index
from prior year
from prior year
75
Index change
from prior month
from prior month
-19.3%
Index change from
same time last year
same time last year
-5.3%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com