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Washington D.C. | February 2021

Home Demand Index

Demand for homes in the Washington MLS market area rose 11 percent in January to a reading of 101, reflecting a Steady level of buyer interest. The Bright MLS | T3 Home Demand Index was slightly ahead of the reading one year earlier, a continuation of the strong buyer interest that was present throughout the second half of 2020.
According to the Bright MLS | T3 Home Demand Index, buyer demand for homes in the Washington market area ranged from Limited to High, even as the overall Index recorded a Steady reading in January. Lower-priced single-family homes posted the lowest level of buyer interest, the continuation of a several-month trend. Higher-priced single-family homes and condos attracted the greatest buyer demand. Heading into the spring buying season, most segments of the market recorded an Index score higher than one year earlier. The number of homes for sale remained low ranging from 4.6 months supply for higher-priced condos to just a one-month supply for mid-priced single-family homes.
Monthly Statistics for February 2021
Home Demand
Index
101
(Steady)
Home Demand Index
from prior month
91
Home Demand Index
from prior year
96
Index change
from prior month
11%
Index change from
same time last year
5.2%
Bright MLS | T3 Home Demand Index

www.homedemandindex.com

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Washington D.C. | February 2021

Home Demand Index | Historical Year-over-Year Comparison

Since mid-2020, demand for homes in the Washington market area has been extraordinarily robust when compared with the same period one year earlier. A combination of factors including low mortgage rates and a better-than-average local economy supported buyer demand. Following the seasonal decline in buyer interest at the end of the year, demand in January increased as would-be buyers began searching for homes in anticipation of the spring market. In fact, buyer demand was off to a stronger start in 2021 than the previous year.

Home Demand Index

Bright MLS | T3 Home Demand Index

www.homedemandindex.com

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Washington D.C. | February 2021

Home Demand Map

One-quarter of ZIP codes in the Washington market area recorded a High level of buyer demand in January an increase from fewer than 20 percent the previous month. Most of these areas, plus the 18 percent of ZIP codes with Moderate demand were highly concentrated in the near-by suburbs of Virginia and Maryland. Roughly one-in-five ZIP codes exhibited Limited demand with a similar number in the Slow category, most of which were located a greater distance from the urban core than the areas with the highest demand.
Bright MLS | T3 Home Demand Index

www.homedemandindex.com

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Washington D.C. | February 2021

Demand and Inventory by Home Type

According to the Bright MLS | T3 Home Demand Index, buyer demand for homes in the Washington market area ranged from Limited to High, even as the overall Index recorded a Steady reading in January. Lower-priced single-family homes posted the lowest level of buyer interest, the continuation of a several-month trend. Higher-priced single-family homes and condos attracted the greatest buyer demand. Heading into the spring buying season, most segments of the market recorded an Index score higher than one year earlier. The number of homes for sale remained low ranging from 4.6 months supply for higher-priced condos to just a one-month supply for mid-priced single-family homes.
Bright MLS | T3 Home Demand Index

www.homedemandindex.com

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Washington D.C. | February 2021

Single Family Home Below $395k

Buyer interest in lower-priced single-family homes in the Washington market area has been subdued for the past several months. In January, the Index was down slightly and 34 percent below the level one year earlier. Would-be buyers at this price point have been the most affected by the sluggish economy, limiting overall demand. Nonetheless, listings that do come on the market sold quickly. The months supply in January was only 1.2, slightly above the previous month but still reflecting a challenging market for buyers in this segment.
Monthly Statistics for Single Family Home Below $395k
Home Demand
Index
67
(Limited)
Home Demand Index
from prior month
68
Home Demand Index
from prior year
102
Months of
inventory
1.2
Average daily inventory last month
420
Inventory sold
last month
365
Bright MLS | T3 Home Demand Index

www.homedemandindex.com

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Washington D.C. | February 2021

Single Family Home $395k - $950k

Demand for mid-priced single-family homes was Steady in January, up by 20 percent over the month and at nearly the same level as one year earlier. Inventory condition remained tight with the supply up marginally from the previous month. In January, homes in this price range accounted for nearly one-quarter of sales but only 15 percent of listings, which suggests that buyers’ search for a home will remain challenging.
Monthly Statistics for Single Family Home $395k - $950k
Home Demand
Index
97
(Steady)
Home Demand Index
from prior month
81
Home Demand Index
from prior year
89
Months of
Inventory
1
Average daily inventory last month
843
Inventory sold
last month
853
Bright MLS | T3 Home Demand Index

www.homedemandindex.com

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Washington D.C. | February 2021

Single Family Home Above $950k

The Bright MLS | T3 Home Demand Index for single-family homes priced above $950,000 rose 33 percent in January, far more than any other type of home in the Washington market area. Furthermore, demand was 27 percent higher than one year earlier suggesting demand will remain elevated going into the peak of home buying activity in the spring. The months supply of homes was 2.1 in January, a low level, but higher than other single-family segments under even greater inventory pressure.
Monthly Statistics for Single Family Home Above $950k
Home Demand
Index
121
(Moderate)
Home Demand Index
from prior month
91
Home Demand Index
from prior year
95
Months of
Inventory
2.1
Average daily inventory last month
579
Inventory sold
last month
273
Bright MLS | T3 Home Demand Index

www.homedemandindex.com

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Washington D.C. | February 2021

Condo Below $570k

Buyer interest in lower-priced condos rose in January and was 24 percent higher than one year earlier. The strength of demand in this segment can be attributed in part to the limited number of single-family homes available for sale at similar price points. With a still-low months supply of 2.3 in January, inventory conditions for buyers were marginally more favorable than most other segments of the Washington market.
Monthly Statistics for Condo Below $570k
Home Demand
Index
129
(Moderate)
Home Demand Index
from prior month
116
Home Demand Index
from prior year
104
Months of
Inventory
2.3
Average daily inventory last month
2,006
Inventory sold
last month
880
Bright MLS | T3 Home Demand Index

www.homedemandindex.com

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Washington D.C. | February 2021

Condo Above $570k

Demand for higher-priced condos remained strong in January, consistent with the elevated level of buyer interest over the past several months. The Index rose 19 percent over the month and was 19 percent higher than one year earlier. While the 4.6 months supply was favorable for buyers searching in this segment, it should be noted that higher-priced condos accounted for just eight percent of homes for sale in January, making only a small contribution to total inventory in the Washington market area.
Monthly Statistics for Condo Above $570k
Home Demand
Index
141
(High)
Home Demand Index
from prior month
118
Home Demand Index
from prior year
118
Months of
Inventory
4.6
Average daily inventory last month
457
Inventory sold
last month
99
Bright MLS | T3 Home Demand Index

www.homedemandindex.com

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Washington D.C. | February 2021

Townhouse/Rowhouse/Twin All prices

Townhouse/
Rowhouse/Twin
All prices

The Bright MLS | T3 Home Demand Index for the townhouse segment was Steady in January only slightly higher than the previous month. The inventory of homes for sale remained lean at 1.2 months supply, consistent with statistics during the past several months. In fact, only mid-priced single-family homes recorded a lower months supply.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
99
(Steady)
Home Demand Index
from prior month
96
Home Demand Index
from prior year
94
Months of
Inventory
1.2
Average daily inventory last month
1,435
Inventory sold
last month
1,204
Bright MLS | T3 Home Demand Index

www.homedemandindex.com

Note

1. This report is generated with data from the following counties: Alexandria City, VA; Arlington, VA; Fairfax City, VA; Fairfax, VA; Falls Church City, VA; Montgomery, MD; Prince Georges, MD; Washington, DC
2. This report is for the February 2021 period with data collected from the previous month.
Released: March 5, 2021
Reference ID: 1103

Washington D.C. | February 2021

Home Demand Map (Zip Codes)

One-quarter of ZIP codes in the Washington market area recorded a High level of buyer demand in January an increase from fewer than 20 percent the previous month. Most of these areas, plus the 18 percent of ZIP codes with Moderate demand were highly concentrated in the near-by suburbs of Virginia and Maryland. Roughly one-in-five ZIP codes exhibited Limited demand with a similar number in the Slow category, most of which were located a greater distance from the urban core than the areas with the highest demand.
Bright MLS | T3 Home Demand Index

www.homedemandindex.com

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