Washington D.C. Metro

August 2025 | 
Home Demand Index: 89 | 
Tier: Slow

Metro Area Overview

The Home Demand Index (HDI) for the Washington D.C. metro area fell to 89 in the latest report, down from 98 the previous month. This ongoing decline reflects a typical seasonal slowdown, as buyer activity tends to ease during the later summer months. Still, demand remains higher than the same period last year, when the index stood at 82. The year-over-year increase points to a more active market overall, with buyer interest holding steady compared to last year.
The market trend line, below, provides a high-level monthly overview of the Home Demand Index for each of the metro market areas within the Greater Washington D.C. Metro Area. The Home Demand Index is baselined at 100, with 90-110 indicating a steady market. Index values above 110 indicate moderate and high activity while Index values below 90 indicate slower or limited activity. For more information for a given period of time, click on any point on the map to pull up the monthly report.
Metro Market Trend Data by Bright MLS | T3 Home Demand Index
Each of the market areas listed above are defined as follows:
  • Maryland-West Virginia Panhandle – Allegany, MD; Berkeley, WV; Garrett, MD; Grant, WV; Hampshire, WV; Hardy, WV; Jefferson, WV; Mineral, WV; Morgan, WV; Pendleton, WV; Washington, MD;
  • North Central Virginia – Caroline, VA; Clarke, VA; Culpeper, VA; Fauquier, VA; Frederick, VA; Fredericksburg City, VA; King George, VA; Madison, VA; Manassas City, VA; Orange, VA; Page, VA; Prince William, VA; Rappahannock, VA; Shenandoah, VA; Spotsylvania, VA; Stafford, VA; Warren, VA; Winchester City, VA;
  • Southern Maryland – Calvert, MD; Charles, MD; Saint Marys, MD;
  • Washington D.C. Metro – Alexandria City, VA; Arlington, VA; Fairfax, VA; Falls Church City, VA; Frederick, MD; Loudoun, VA; Montgomery, MD; Prince Georges, MD; Washington, DC;

Washington D.C. | August 2025

Home Demand Index

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The Home Demand Index (HDI) for the Washington D.C. metro area fell to 89 in the latest report, down from 98 the previous month. This ongoing decline reflects a typical seasonal slowdown, as buyer activity tends to ease during the later summer months. Still, demand remains higher than the same period last year, when the index stood at 82. The year-over-year increase points to a more active market overall, with buyer interest holding steady compared to last year.
Demand continues to soften across all home types in Washington D.C. for the second consecutive month, though levels remain higher than a year ago. The luxury single-family home segment experienced the largest decline but still shows the strongest year-over-year growth. Luxury condos also recorded notable decreases, while entry-level single-family homes and townhouses saw the smallest decline among all segments, with a 7% drop compared to the previous month. 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 August 2025
Home Demand
Index
89
(Slow)
Home Demand Index
from prior month
98
Home Demand Index
from prior year
82
Index change
from prior month
-9.2%
Index change from
same time last year
8.5%
Bright MLS | T3 Home Demand Index

www.homedemandindex.com