New algorithm ranks DC area home demand, and it’s extremely high
Bright MLS Residential Real Estate Listing Service has developed a new index designed to be a forward-looking indication of homebuyers …
Residential real estate listing service Bright MLS has developed a new index designed to be a forward-looking indication of homebuyer demand, and in the DC area, the index remains in the red.
The T3 housing demand index does not follow sales. Instead, it tracks pre-sale activity, including house listing requests, home searches, and views on Bright MLS’s own listings, which cover the bulk of all homes in the area. that are on the market. The index has a range of five levels from limited demand to high demand.
The index was set at a base score of 100 in March when it launched.
In May, the DC area index stood at 147, the high end of the high demand range. It was down 7% from April, but in May 2020, the index was stuck in the middle of “moderate” on the demand index. This indicates that demand is now 20.5% higher than it was around this time last year.
Traditional Bright MLS sales data shows the median selling price of a home in the DC subway in May was $ 570,000, 3.6% higher than in April, 14% higher than in May 2020 and 18.8% more than in May 2019.
Closed sales in the DC area in May are up more than 62% from a year ago, and pending sales, contracts signed to buy a home but not yet closed, are up 37.3 %.
Homes also continue to sell at an all-time high, with a median of days on the market of just 6 days.
The good news for buyers is that the number of new listings entering the market in May was up 44.8% from May of last year, although new listings were down 5.9% from April.
Sellers in the DC Marketplace continue to get what they want in terms of price, with last month’s median selling price 4% above the median list price. Bright MLS said demand remains strongest for single-family homes, with 60% of listings selling above the original list price last month.
Arlington County, Virginia remains the most expensive housing market in the DC area, with a median sale price of $ 725,000 last month, 16.5% more than in May 2020.
Below is the Bright MLS Q3 Home Demand Index for May and median selling prices in the DC area, courtesy of Bright MLS:
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