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. | July 2025
Home Demand Index
The Home Demand Index (HDI) for the Washington D.C. metro area stands at 95 this month, down from 104 last month but still higher than the 7 recorded during the same period last year. The month-over-month decline points to a modest cooling in market activity, consistent with typical midsummer slowdowns. However, the year-over-year improvement signals a healthier overall market, with buyer interest remaining notably stronger than in the prior year.
Demand softened across all home types in Washington D.C. compared to the previous month, though levels remain higher than a year ago. The luxury single-family home segment saw the sharpest monthly decline but continues to post the strongest year-over-year growth. Mid-market single-family homes and luxury condos also recorded notable decreases, while entry-level single-family homes declined only slightly. Overall, demand is moderating in the short term but remains above last year across most segments, highlighting the continued impact of limited inventory on market dynamics.
Monthly Statistics for July 2025
Home Demand
Index
Index
95
(Steady)
Home Demand Index
from prior month
from prior month
104
Home Demand Index
from prior year
from prior year
77
Index change
from prior month
from prior month
-8.7%
Index change from
same time last year
same time last year
23.4%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Philadelphia | July 2025
Home Demand Index
The Home Demand Index (HDI) for the Philadelphia metro area stands at 86 in the latest report, down from 92 in the prior month but notably higher than the 75 recorded during the same period last year. This movement reflects a modest month-over-month softening that is typical for early summer, yet the year-over-year increase signals a strengthening market compared to 2024. Despite the recent dip, buyer demand remains within the Steady range, supported by sustained interest in key submarkets and easing economic uncertainty.
Demand across home types in Philadelphia shows notable variation, with entry-level single-family homes recording an index of 78—down from 85 last month but up from 65 a year ago—indicating moderate but softening interest in affordable segments. Mid-range single-family homes also experienced a slight decline, with the index dropping to 81 from 86 in the prior month, suggesting some cooling in activity among move-up buyers. Despite these month-over-month declines, both segments remain above year-ago levels, pointing to a generally stronger market compared to last year. This pattern reflects shifting buyer dynamics, likely influenced by changes in inventory availability and evolving affordability expectations.
Monthly Statistics for July 2025
Home Demand
Index
Index
86
(Slow)
Home Demand Index
from prior month
from prior month
92
Home Demand Index
from prior year
from prior year
75
Index change
from prior month
from prior month
-6.5%
Index change from
same time last year
same time last year
14.7%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Baltimore | July 2025
Home Demand Index
The Home Demand Index (HDI) for the Baltimore metro area currently stands at 92, reflecting a notable decline from 98 last month but still higher than the 81 recorded a year ago. This places the market firmly in the Steady demand category, despite the recent softening in activity. The month-over-month dip suggests a slowdown likely tied to seasonal transitions or buyer hesitation, but the year-over-year gain highlights an overall improvement in market confidence compared to last summer.
Demand across property types in Baltimore shows a mixed picture this month. Entry-level single-family homes posted an index of 67, down from 72 last month but slightly above last year’s 65, indicating ongoing affordability challenges in the lower price bracket. Mid-range single-family homes dipped to 94 from 101, though demand remains notably stronger than last year’s 82, pointing to continued interest from move-up buyers. Luxury single-family homes decreased to 129 from 136, but demand remains well above last year’s 91, reflecting sustained strength in the upper-tier market. Entry-level condos fell to 121 from 136 but are still outperforming last year’s level of 90, signaling steady demand from first-time and budget-conscious buyers. Luxury condos edged up slightly to 158 from 153, with demand continuing to exceed last year’s 135, suggesting ongoing interest in high-end urban living. Townhouses declined to 90 from 96, yet remain above last year’s 80, indicating modest cooling but overall stable buyer interest.
Monthly Statistics for July 2025
Home Demand
Index
Index
92
(Steady)
Home Demand Index
from prior month
from prior month
98
Home Demand Index
from prior year
from prior year
81
Index change
from prior month
from prior month
-6.1%
Index change from
same time last year
same time last year
13.6%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com