A statistical analysis of the local real-estate market sees not just the springtime thermometer on the rise, but the already spicy local market further heating up.
The T3 Home Demand Index, created by the Mid-Atlantic multiple-listing service Bright MLS, uses a variety of data points to settle on a monthly score for the Washington region’s homes market. For May, the figure was up to 157 – higher than the 144 in April and way up from 96 a year before.
The factors used to compile the scores are activities that occur before the sales process transpires, so unlike monthly sales reports, the figures can be used as a forward-looking indicator. The baseline of 100 debuted in March after analysts looked at a year’s worth of data; there is no upper limit to how high a number can be reached.
“An elevated level of buyer demand in the Washington market area was evident among most segments of the market,” analysts noted. “ Demand was strongest for higher-priced single-family homes and condos. With less than a one-month supply, the inventory of homes for sales was particularly low in the mid-priced single-family and townhouse segments, which together accounted for 60 percent of sales in April.”
Leading the field for May was the 22306 ZIP code of Alexandria, with a score of 245. In the Sun Gazette coverage area, the highest scores were found in 22209 (Arlington) at 207; 22207 (also Arlington) at 188; and 22180 (Vienna) at 181.
Not all ZIP codes are ranked each month. Among those in the Sun Gazette area that were scored in May, 22101 (McLean) and 22182 (Vienna) ranked in the “Moderate” category, while 22102 (McLean) ranked one lower, at “Steady.” The 22066 ZIP (Great Falls) was ranked, as it usually is, as “Limited” based on the relatively few sales in any given month.
Demand rose in all home segments except one, the lower-priced single-family market, where finding inventory is becoming such a challenge that most prospective buyers are moving into the townhouse/condo market (or opening their checkbooks to pay more).
For more information and the complete scorecard, see the Website at www.homedemandindex.com.