Courtesy of Delta Associates.
The inventory of new condos on the market in the DC area just keeps getting smaller.
Real estate research firm Delta Associates released its first quarter 2013 report on the DC metro area condo market on Tuesday, which revealed that the inventory of new condos in the region has reached a new record low. Readers may remember that in January, Delta reported that there was just a 12-month supply of new condos on the market; that level has now fallen to 9.6 months. Following are a few of the key findings from the report:
- In the DC region, there are currently 2,849 new condo units under construction or being marketed. What that translates to is just 9.6 months of new condo inventory, based on the current sales pace. To give this number some historical perspective, last July inventory stood at 3,629 units. In 2007, there were nearly 20,000 new condos on the market.
- Inventory varies by sub-market. From the report: “In most of the District and Prince George’s County, there is less than six months of inventory available, but in Loudoun/Prince William, there is 1.4 years of inventory.”
- A torrid sales pace at new projects and a relatively small number of units in the pipeline are the main reasons that inventory is so low. Projects that have been introduced to the market in the prior 12 months have sold at a pace of 8.3 units per month; in contrast, projects that have sold out since 2012 averaged 2.6 sales per month. (It is important to note when looking at this differential that the final units to sell in a project are usually the least desirable. Still, the increased sales pace is noteworthy.)
As for inventory coming on the market, here is what Delta’s Condominium Practice Director William Rich told UrbanTurf: “1,000 units are in the works that are expected to deliver or start selling by later this year or 2014, but many more are needed to help return the area to healthy supply levels, given the current sales pace.”
The rendering of the condo project pictured in the thumbnail image will be located at 11th and M Street NW. More details here.
This article originally published at http://dc.urbanturf.com/articles/blog/9.6_months_new_condo_supply_in_dc_area_hits_record_low/6873
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