March 2023 Report
Washington D.C. Metro
Washington D.C. | March 2023
Home Demand Index
Buyer interest in Washington Metro area homes eased in February. The Bright MLS | T3 Home Demand Index decreased 2.7 percent to 72, a reading consistent with a Slow pace of buyer activity. Compared with one year earlier, the Index was one-third lower.
Demand for all types of homes softened in February except for luxury single-family homes, which rose by one-fifth. Although declining over the month, buyer interest was strongest for luxury condos with demand in the Steady category. The Index was in the Limited range for mid-market single-family homes and in the Slow category among the remaining segments of the market. The months supply ranged from 1.7 months for mid-market single-family homes to 3.6 months for luxury condos. The months supply fell for each type of home in February compared with the month before.
Monthly Statistics for March 2023
Home Demand
Index
Index
72
(Slow)
Home Demand Index
from prior month
from prior month
74
Home Demand Index
from prior year
from prior year
109
Index change
from prior month
from prior month
-2.7%
Index change from
same time last year
same time last year
-33.9%
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | March 2023
Home Demand Index | Historical Year-over-Year Comparison
The slight decrease in buyer activity in February followed a solid gain in January. The softening of demand over the month contrasts with the strong increase one year ago as last year’s spring homebuying market got underway. The different trajectory in the early months of this year is likely due to ongoing skittishness about the economy in combination with the uptick in mortgage rates in February.
Home Demand Index
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | March 2023
Home Demand Map
Buyer interest was Moderate in Arlington County and Alexandria City and Slow in Washington DC, Falls Church City and in Prince Georges, and Fairfax counties. The Index was in the Limited category in the rest of the metro area. Demand was Steady in the Southern Maryland and Maryland-West Virginia Panhandle market areas and Limited in the North Central Virginia region. Buyer interest in 70 percent of ZIP codes across the Greater Washington area was in the Slow or Limited range, virtually unchanged from January. Demand in 12 percent of ZIP codes was in the High category.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | March 2023
Demand and Inventory by Home Type
Demand for all types of homes softened in February except for luxury single-family homes, which rose by one-fifth. Although declining over the month, buyer interest was strongest for luxury condos with demand in the Steady category. The Index was in the Limited range for mid-market single-family homes and in the Slow category among the remaining segments of the market. The months supply ranged from 1.7 months for mid-market single-family homes to 3.6 months for luxury condos. The months supply fell for each type of home in February compared with the month before.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | March 2023
Single Family Home Below $520k
Demand for entry-level single-family homes softened in January with the Bright MLS | T3 Home Demand Index decreasing 10 percent to 74. Despite the decrease, buyer interest remained in the Slow range. The months supply fell to 2.1 months from 2.9 months as sales rose and the number of listings fell.
Monthly Statistics for Single Family Home Below $520k
Home Demand
Index
Index
74
(Slow)
Home Demand Index
from prior month
from prior month
82
Home Demand Index
from prior year
from prior year
92
Months of
inventory
inventory
2.1
Average daily inventory last month
730
Inventory sold
last month
last month
347
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | March 2023
Single Family Home $520k - $1220k
Demand for mid-market single-family homes was Limited in February and weaker than any other segment of the Washington Metro market. The Index, at 66, was virtually unchanged from January and one-third lower than a year earlier. Buyers at this price point have not yet started their springtime home search in earnest. Although demand was weak in February, the months supply fell to 1.7 from 2.4 months.
Monthly Statistics for Single Family Home $520k - $1220k
Home Demand
Index
Index
66
(Limited)
Home Demand Index
from prior month
from prior month
67
Home Demand Index
from prior year
from prior year
100
Months of
Inventory
Inventory
1.7
Average daily inventory last month
1,144
Inventory sold
last month
last month
677
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | March 2023
Single Family Home Above $1220k
Buyer interest in luxury single-family homes increased over the month, in contrast to all other segments of the metro area market. The Index, at 76, was up 19 percent to a level reflecting a Slow pace of demand. Although rising over the month, demand was below the High level of buyer interest one year earlier. The months supply, at 3.3, was down marginally from January.
Monthly Statistics for Single Family Home Above $1220k
Home Demand
Index
Index
76
(Slow)
Home Demand Index
from prior month
from prior month
64
Home Demand Index
from prior year
from prior year
130
Months of
Inventory
Inventory
3.3
Average daily inventory last month
400
Inventory sold
last month
last month
122
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | March 2023
Condo Below $570k
Demand for entry-level condos fell in February and remained in the Slow category of buyer activity. The Index, at 80, was down over the month and more than one-third lower than a year earlier. The inventory of homes for sale dropped to 2.1 months from 2.9 months in January mostly due to a rise in sales.
Monthly Statistics for Condo Below $570k
Home Demand
Index
Index
80
(Slow)
Home Demand Index
from prior month
from prior month
86
Home Demand Index
from prior year
from prior year
128
Months of
Inventory
Inventory
2.1
Average daily inventory last month
1,092
Inventory sold
last month
last month
526
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | March 2023
Condo Above $570k
Buyer interest in luxury condos decreased slightly in February. The Index, at 105, was consistent with a Steady pace of demand but well below the High level of buyer activity one year earlier. The months supply fell to 3.6 months from 5.5 months in January.
Monthly Statistics for Condo Above $570k
Home Demand
Index
Index
105
(Steady)
Home Demand Index
from prior month
from prior month
110
Home Demand Index
from prior year
from prior year
167
Months of
Inventory
Inventory
3.6
Average daily inventory last month
319
Inventory sold
last month
last month
89
Bright MLS | T3 Home Demand Index
www.homedemandindex.com
Washington D.C. | March 2023
Townhouse/Rowhouse/Twin All prices
Townhouse/
Rowhouse/Twin
All prices
The Bright MLS | T3 Home Demand Index for townhouses was down marginally to 71, a level reflecting a Slow pace of demand. The months supply, at 1.9, fell in February due to a decrease in the number of listings and an increase in sales. The months supply was lower than all other segments of the Washington Metro market except mid-market single family.
Monthly Statistics for Townhouse/Rowhouse/TwinAll prices
Home Demand
Index
Index
71
(Slow)
Home Demand Index
from prior month
from prior month
74
Home Demand Index
from prior year
from prior year
110
Months of
Inventory
Inventory
1.9
Average daily inventory last month
1,636
Inventory sold
last month
last month
859
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 March 2023 period with data collected from the previous month.
Released: March 2, 2023
Reference ID: 1788
Washington D.C. | March 2023
Home Demand Map (Zip Codes)
Buyer interest was Moderate in Arlington County and Alexandria City and Slow in Washington DC, Falls Church City and in Prince Georges, and Fairfax counties. The Index was in the Limited category in the rest of the metro area. Demand was Steady in the Southern Maryland and Maryland-West Virginia Panhandle market areas and Limited in the North Central Virginia region. Buyer interest in 70 percent of ZIP codes across the Greater Washington area was in the Slow or Limited range, virtually unchanged from January. Demand in 12 percent of ZIP codes was in the High category.
Bright MLS | T3 Home Demand Index
www.homedemandindex.com