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

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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. | February 2025

Home Demand Index

The Home Demand Index (HDI) for this report period is 63, showing an increase from last month’s 50. However, it remains slightly below last year’s index of 64. This suggests a moderate shift in market conditions, with month-over-month growth, yet a slight dip in demand compared to the previous year. The stability of the index reflects steady buyer interest, despite economic pressures, indicating that the market remains resilient overall.
Demand has increased across all home segments in the Washington metro area. Luxury condos saw the most significant increase, rising from 74 to 111, likely driven by a surge in buyer interest for high-end properties. Entry-level condos followed, climbing from 67 to 86. Townhouses rose from 53 to 64, while luxury single-family homes increased from 40 to 60. Mid-market homes rose from 51 to 59, and entry-level single-family homes saw a rise from 51 to 59. This broad uptick signals a market recovery, with the most notable increases in luxury condos and entry-level condos.
Monthly Statistics for February 2025
Home Demand
Index
63
(Limited)
Home Demand Index
from prior month
50
Home Demand Index
from prior year
64
Index change
from prior month
26%
Index change from
same time last year
-1.6%
Bright MLS | T3 Home Demand Index

www.homedemandindex.com

Philadelphia | February 2025

Home Demand Index

The Home Demand Index (HDI) stands at 64, marking an increase from last month’s 49 but a slight decline compared to last year’s 66. This month-over-month rise suggests strengthening market conditions, potentially driven by seasonal factors or increased buyer activity. However, the year-over-year decline indicates that broader economic conditions or affordability constraints may still be influencing demand.
Entry-level single-family homes saw a moderate increase, rising from 54 last month to 63 this month. Mid-range single-family homes experienced a notable increase as well, rising to 55 from 41 last month. Luxury single-family homes also gained momentum, increasing from 28 to 40. Entry-level condos saw a substantial increase from 62 to 83, while luxury condos experienced the most significant growth, rising from 63 last month to 97. Townhouses also saw an increase. This divergence suggests shifting buyer priorities, with a stronger focus on the luxury segments across both single-family homes and condos.
Monthly Statistics for February 2025
Home Demand
Index
64
(Limited)
Home Demand Index
from prior month
49
Home Demand Index
from prior year
66
Index change
from prior month
30.6%
Index change from
same time last year
-3%
Bright MLS | T3 Home Demand Index

www.homedemandindex.com

Baltimore | February 2025

Home Demand Index

The Home Demand Index (HDI) for Baltimore stands at 66 this report period, marking an increase from last month’s 56 but a slight decline from last year’s 69. This rebound suggests a modest resurgence in buyer interest following last month’s dip, though demand remains softer compared to the same period last year. Ongoing economic factors, including affordability constraints and inventory challenges, continue to shape market conditions.
Entry-level single-family homes have seen a modest increase in demand. Mid-market single-family homes have experienced a 16% increase, while luxury single-family homes have grown by 31%. Entry-level condos have shifted from limited to steady demand, with inventory constraints still driving competition. Luxury condos have exhibited the largest increase in demand, moving from slow to moderate demand. Overall, the market is experiencing an uptick in demand across all property types, though supply constraints continue to shape trends.
Monthly Statistics for February 2025
Home Demand
Index
66
(Limited)
Home Demand Index
from prior month
56
Home Demand Index
from prior year
69
Index change
from prior month
17.9%
Index change from
same time last year
-4.3%
Bright MLS | T3 Home Demand Index

www.homedemandindex.com