August 2021 Report
Washington D.C. Metro
Washington D.C. | August 2021
Home Demand Index
The Bright MLS | T3 Home Demand Index for the Washington Metro area decreased by nearly 17 percent in July to a reading of 123. Although in the Moderate demand range, the Index had been in the High category since March reflecting a surge in demand in the early part of the year that has since softened.
Demand among each of the six types of homes tracked by the Bright MLS | T3 Home Demand Index decreased in July. The largest decrease in buyer interest was in the higher-priced single-family segment, although demand remained higher than other segments. The months supply of homes for sale was very low among the single-family segments and townhouses. The leanest supplies of homes were in the mid-priced single-family segment, at one month, and townhouses at 1.1 months.
Monthly Statistics for August 2021
Home Demand
Index
Index
123
(Moderate)
Home Demand Index
from prior month
from prior month
148
Home Demand Index
from prior year
from prior year
141
Index change
from prior month
from prior month
-16.9%
Index change from
same time last year
same time last year
-12.8%
Bright MLS | T3 Home Demand Index
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Washington D.C. | August 2021
Home Demand Index | Historical Year-over-Year Comparison
Home demand in the Washington Metro area has been cooling since peaking in April with the July decline steeper than the previous two months. Notably, July was the first time in the past 12 months when the Index was below the level one year earlier. Lack of inventory and diminishing affordability contributed to the decline.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2021
Home Demand Map
Buyer demand in five of the nine counties in the Washington Metro area was in the High range led by Arlington County, Falls Church, VA and Alexandria, VA. Demand was Steady in Washington, DC and Frederick County. Nearly half of ZIP codes in the Greater Washington area recorded an Index in the High or Moderate ranges. At the same time, buyer interest in 40 percent of ZIP codes was Slow or Limited. Many of the communities with weaker demand were in the outlying areas of the Maryland-West Virginia Panhandle and North Central Virginia area.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2021
Demand and Inventory by Home Type
Demand among each of the six types of homes tracked by the Bright MLS | T3 Home Demand Index decreased in July. The largest decrease in buyer interest was in the higher-priced single-family segment, although demand remained higher than other segments. The months supply of homes for sale was very low among the single-family segments and townhouses. The leanest supplies of homes were in the mid-priced single-family segment, at one month, and townhouses at 1.1 months.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2021
Single Family Home Below $395k
Demand for lower-price single-family homes was in the Limited range for the second month in a row in July. The Index fell 16 percent to a reading of 56. Buyer interest in this segment has decreased over the year with the Index down by nearly half compared with one year earlier. The inventory of homes for sale remained very low, however. In July the months supply was just 1.3, up slightly from the previous month.
Monthly Statistics for Single Family Home Below $395k
Home Demand
Index
Index
56
(Limited)
Home Demand Index
from prior month
from prior month
67
Home Demand Index
from prior year
from prior year
104
Months of
inventory
inventory
1.3
Average daily inventory last month
469
Inventory sold
last month
last month
356
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2021
Single Family Home $395k - $950k
Buyer interest in mid-priced single-family homes fell by nearly 20 percent in July but remained in the High range. Buyer interest has been High since the spring with activity in this segment accounting for about one-third of sales in the Washington Metro area. The months supply was at the lowest level of any type of home tracked by the Index. In July, there was a one-month supply up from an extraordinarily low 0.8 months supply in June.
Monthly Statistics for Single Family Home $395k - $950k
Home Demand
Index
Index
130
(High)
Home Demand Index
from prior month
from prior month
160
Home Demand Index
from prior year
from prior year
143
Months of
Inventory
Inventory
1
Average daily inventory last month
2,110
Inventory sold
last month
last month
2,195
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2021
Single Family Home Above $950k
Buyer interest in higher-priced single-family homes remained elevated in July. The Index reading, at 180, was in the High range despite a 29 percent decline over the month. Among all types of homes, demand was highest in this segment. A rise in inventory and steady sales resulted in a small increase in the months supply. In July there was a 1.4 months supply, up from 1.1 in June.
Monthly Statistics for Single Family Home Above $950k
Home Demand
Index
Index
180
(High)
Home Demand Index
from prior month
from prior month
254
Home Demand Index
from prior year
from prior year
183
Months of
Inventory
Inventory
1.4
Average daily inventory last month
1,020
Inventory sold
last month
last month
713
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2021
Condo Below $570k
Demand for condos in the Washington Metro area has been strong for several months. In July the Bright MLS | T3 Home Demand Index for this segment declined by 16 percent to a reading of 141 but remained in the High range. Compared to one year earlier, the Index was little changed suggesting long-term strength in demand despite seasonal fluctuations. The heightened level of demand has also kept inventory levels low. In July the months supply was 2.3, up marginally from the previous month.
Monthly Statistics for Condo Below $570k
Home Demand
Index
Index
141
(High)
Home Demand Index
from prior month
from prior month
167
Home Demand Index
from prior year
from prior year
145
Months of
Inventory
Inventory
2.3
Average daily inventory last month
2,656
Inventory sold
last month
last month
1,171
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2021
Condo Above $570k
Demand for higher-priced condos decreased in July, with the Index reading falling by 19 percent to 161. The months supply of condos for sale, at 3.1, rose over the month as sales eased and the inventory level remained steady.
Monthly Statistics for Condo Above $570k
Home Demand
Index
Index
161
(High)
Home Demand Index
from prior month
from prior month
198
Home Demand Index
from prior year
from prior year
191
Months of
Inventory
Inventory
3.1
Average daily inventory last month
564
Inventory sold
last month
last month
181
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | August 2021
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
The Bright MLS | T3 Home Demand Index for townhouses decreased 13 percent over the month, consistent with the overall softening of the market. Demand was also 10 percent lower than one year earlier. The months supply of townhouses for sale was very low at 1.1 months, second only to mid-priced single-family homes in July.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
128
(Moderate)
Home Demand Index
from prior month
from prior month
147
Home Demand Index
from prior year
from prior year
143
Months of
Inventory
Inventory
1.1
Average daily inventory last month
2,611
Inventory sold
last month
last month
2,288
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Note
1. This report is generated with data from the following counties:
- 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;
2. This report is for the August 2021 period with data collected from the previous month.
Released: August 3, 2021
Reference ID: 1330
Washington D.C. | August 2021
Home Demand Map (Zip Codes)
Buyer demand in five of the nine counties in the Washington Metro area was in the High range led by Arlington County, Falls Church, VA and Alexandria, VA. Demand was Steady in Washington, DC and Frederick County. Nearly half of ZIP codes in the Greater Washington area recorded an Index in the High or Moderate ranges. At the same time, buyer interest in 40 percent of ZIP codes was Slow or Limited. Many of the communities with weaker demand were in the outlying areas of the Maryland-West Virginia Panhandle and North Central Virginia area.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com