July 2025 Report
Washington D.C. Metro
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
Washington D.C. | July 2025
Home Demand Index | Historical Year-over-Year Comparison
The year-over-year comparison for Washington D.C.’s Home Demand Index shows an increase from 77 last year to 95 this report period, indicating stronger buyer activity compared to the same time in 2024. However, the index declined from 104 last month, suggesting a recent dip in momentum. Despite the month-over-month softness, the broader upward trend reflects a more resilient market environment year-over-year.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | July 2025
Home Demand Map
Buyer demand across the Washington D.C. region continues to reflect significant geographic variation. Core areas such as Arlington County, Alexandria City, and Falls Church City remain among the strongest performers, sustaining higher levels of buyer interest. In contrast, suburban and outlying areas like Prince George’s County, Fairfax City, and Frederick County continue to experience slower demand, highlighting persistent disparities in regional market dynamics.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | July 2025
Demand and Inventory by Home Type
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.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | July 2025
Single Family Home Below $560k
The index for entry-level single-family homes in Washington, D.C. dipped slightly to 78 from 79 last month but remains above last year’s level of 69. The modest month-over-month decline points to stable yet subdued buyer demand, while year-over-year growth highlights gradual improvement despite persistent inventory constraints and affordability challenges.
Monthly Statistics for Single Family Home Below $560k
Home Demand
Index
Index
78
(Slow)
Home Demand Index
from prior month
from prior month
79
Home Demand Index
from prior year
from prior year
69
Months of
inventory
inventory
2.6
Average daily inventory last month
1,085
Inventory sold
last month
last month
420
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | July 2025
Single Family Home $560k - $1350k
The index for mid-range single-family homes in Washington, D.C. is 91, down from 103 last month but above last year’s 74. The month-over-month decline indicates a cooling in buyer activity in the short term, though demand remains stronger than a year ago. Overall, the market continues to perform at a higher level compared to last year despite recent softening.
Monthly Statistics for Single Family Home $560k - $1350k
Home Demand
Index
Index
91
(Steady)
Home Demand Index
from prior month
from prior month
103
Home Demand Index
from prior year
from prior year
74
Months of
Inventory
Inventory
2
Average daily inventory last month
2,741
Inventory sold
last month
last month
1,356
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | July 2025
Single Family Home Above $1350k
The index for luxury single-family homes in Washington D.C. is at 128, down from 159 last month but still well above last year’s 98. The sharp month-over-month decline indicates a cooling in short-term buyer interest, though the strong year-over-year increase reflects sustained long-term improvement in the high-end market. Despite the recent dip, demand remains stronger than a year ago, suggesting continued appeal for luxury properties.
Monthly Statistics for Single Family Home Above $1350k
Home Demand
Index
Index
128
(Moderate)
Home Demand Index
from prior month
from prior month
159
Home Demand Index
from prior year
from prior year
98
Months of
Inventory
Inventory
2.7
Average daily inventory last month
1,172
Inventory sold
last month
last month
436
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | July 2025
Condo Below $595k
The index for entry-level condos in Washington D.C. is at 112, down from 121 last month but notably higher than last year’s 88. The month-over-month decline indicates a cooling in short-term demand, yet the strong year-over-year gain highlights continued interest in this affordable segment. Overall, the market remains stronger than a year ago, with entry-level condos still appealing to budget-conscious buyers.
Monthly Statistics for Condo Below $595k
Home Demand
Index
Index
112
(Moderate)
Home Demand Index
from prior month
from prior month
121
Home Demand Index
from prior year
from prior year
88
Months of
Inventory
Inventory
3.6
Average daily inventory last month
2,617
Inventory sold
last month
last month
728
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | July 2025
Condo Above $595k
The index for luxury condos in Washington D.C. stands at 128, down from 144 last month but significantly higher than last year’s 107. The decline from the previous month points to a pullback in buyer activity, possibly reflecting shifting priorities or tighter market conditions. However, the notable year-over-year increase underscores that demand remains stronger than it was a year ago, signaling resilience in the luxury condo segment despite recent softening.
Monthly Statistics for Condo Above $595k
Home Demand
Index
Index
128
(Moderate)
Home Demand Index
from prior month
from prior month
144
Home Demand Index
from prior year
from prior year
107
Months of
Inventory
Inventory
5
Average daily inventory last month
628
Inventory sold
last month
last month
126
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | July 2025
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
Buyer demand for townhouses, rowhouses, and twins in Washington D.C. has eased, with the index slipping to 93 from 100 last month. Despite the recent slowdown, demand remains well above last year’s level of 76, reflecting ongoing market strength over the longer term. While short-term activity has cooled, attached homes continue to draw interest from buyers looking for a balance between space and affordability.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
93
(Steady)
Home Demand Index
from prior month
from prior month
100
Home Demand Index
from prior year
from prior year
76
Months of
Inventory
Inventory
2.5
Average daily inventory last month
3,392
Inventory sold
last month
last month
1,363
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 July 2025 period with data collected from the previous month.
Released: July 10, 2025
Reference ID: 2272
Washington D.C. | July 2025
Home Demand Map (Zip Codes)
Buyer demand across the Washington D.C. region continues to reflect significant geographic variation. Core areas such as Arlington County, Alexandria City, and Falls Church City remain among the strongest performers, sustaining higher levels of buyer interest. In contrast, suburban and outlying areas like Prince George’s County, Fairfax City, and Frederick County continue to experience slower demand, highlighting persistent disparities in regional market dynamics.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com