The Northern VA market experienced a typical holiday season market, with not a lot of inventory. Surprisingly, we saw higher than usual buyer activity. This is a promising sign for a balanced, and healthy spring market.

The Home Demand Index (HDI) for the Washington D.C. metro area is at 67 during this report period, showing a noticeable drop from 88 in the previous month. This shift points to softer buyer activity overall.

Entry-level single-family demand remains comparatively restrained versus recent levels, though it is positioned more favorably than a year ago. Luxury single-family homes show the steepest decline, while attached homes, including townhouses, rowhouses, and twin homes, and condos also post notable declines. The spread between mid-range and entry-level performance suggests buyers are concentrating more heavily in move-up price points where inventory and value alignment may be improving.