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DC’s New Condo Shortage Keeps Prices High Through First Quarter

by Lark Turner

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Click to enlarge.

Low inventory in the DC-area market kept prices for new condos high through the first quarter of 2015, according to a recently-released report from real estate data firm Delta Associates.

The trends of low availability, limited supply and price growth continued from last year. But 2015 overall is slated to be an even hotter year than last for the market.

That’s thanks to three main factors, Delta says:

1. The return of larger condo buildings, with 100 or more units, like PN Hoffman’s 130-unit building planned for Parcel O at the Yards.
2. Increased job growth in the area this year, despite slower-than-expected economic growth in 2014.
3. An expected rise in interest rates which could drive potential buyers to purchase.

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An interior rendering of a condo at The Oronoco in Alexandria.

“Same-store” prices for new condos — meaning year-over-year comparisons — rose 7.6 percent metrowide over the past year, but that was driven by Alexandria and Arlington, where prices were up about 17 percent. In DC proper, prices were up just 0.2 percent in the same period. Delta attributes that to a lack of “same-store” units for comparison — most DC condo projects are small and sell within a year.

Sales volume was strong in the first quarter of 2015. The Mideast DC sub-market showed particularly strong sales, rising 8 percent — the highest level since 2006-2007.

Inventory generally remains low in the District. Currently Upper NW has no new condo inventory. Central DC, which catches the highest prices per square foot of any submarket in the region, has about four months of inventory.

As for apartment-to-condo conversions conversions this year, Delta doesn’t expect many occurring during the development phase, at least not in the suburbs, but it notes that just over 1,000 units being built in DC right now could potentially go condo.

Sub-market definitions:

  • Capitol East includes Capitol Hill, Capitol Riverfront, Hill East, NoMa, Southwest Waterfront, and everything east of the Anacostia River.
  • Mideast DC includes Shaw, U Street, Adams Morgan, Columbia Heights, Petworth, Bloomgindale, Takoma, and Brookland.
  • Upper NW DC includes the neighborhoods west of Rock Creek Park, including Georgetown, Glover Park, Woodley Park, Tenleytown.
  • Central DC includes West End, Dupont Circle, Logan Circle, East End, Mt. Vernon Square/Triangle.

See other articles related to: delta associates, condos, condo supply

This article originally published at http://dc.urbanturf.com/articles/blog/dcs_condo_shortage_keeps_prices_high_through_first_quarter/9744

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The Vibrancy Might Take a Few Years
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132 Commerical-Free Acres
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Radical Change Could Be On The Way

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Bedroom Community Gets Buzzing Cache
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In With The New While Maintaining the Old
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Affluence, Green Lawns and Pricey Homes
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Experiencing a Resurgence After a Bumpy History
Potomac
A Suburb on Steroids
Rockville Town Square
Despite the Dynamism, Still Somewhat Generic
Takoma Park
More Than a Little Bit Quirky
Wheaton
A Foodie Magnet on the Verge of Change
Capitol Heights
Kudzu, Front Porches and Crime
Hyattsville
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Artists, Affordable Homes and A Silo Full of Corn
National Harbor
A Development Rises Next to the Potomac
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A Town Looking For Its Identity

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Northwest DC

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16th Street Heights
DC's Sleeper Neighborhood
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Where (Almost) Everyone Knows Your Name
AU Park
One of DC’s Last Frontiers Before the Suburbs
Brightwood
DC’s Northern Neighborhood on the Cusp
Burleith
DC’s 535 House Neighborhood
Cathedral Heights
Do You Know Where That Is?
Chevy Chase DC
Not to Be Confused With the Other Chevy Chase
Cleveland Park
Coming Back After A Rough Year
Columbia Heights
DC’s Most Diverse Neighborhood, But For How Long?
Crestwood
An Island of Serenity East of the Park
Dupont Circle
The Best of DC (For a Price)
Foggy Bottom & West End
Where the Institutional Meets the International
Forest Hills
Ambassadors and Adventurous Architecture
Fort Totten
Five Years Could Make a Big Difference
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350 Homes Just West of Georgetown
Friendship Heights
A Shopping Mecca With a Few Places to Live
Georgetown
History, Hoyas and H&M
Glover Park
One of DC’s Preppier and More Family-Friendly Neighborhoods
Kalorama
A Posh View From Embassy Row
LeDroit Park
A Quiet Enclave in the Middle of the City
Logan Circle
Trendy Now, But Not By Accident
Mount Pleasant
Sought-After Homes Surround Main Street in Transition
Mount Vernon Triangle
From Seedy to Sought-After
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The Long, Skinny Neighborhood at the City’s Northwest Edge
Park View
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DC’s Go-Go-Go Neighborhood
Petworth
Getting a Vibrancy of Its Own
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The Duke’s Former Stomping Ground
Shepherd Park
DC’s Garden of Diversity
Spring Valley
A Suburb With a DC Zip Code
Takoma
Not To Be Confused With Takoma Park
Tenleytown
Not Quite Like Its Neighbors
U Street Corridor
The Difference a Decade Makes
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Deceptively Residential
Adams Morgan
No Longer DC’s Hippest Neighborhood, But Still Loved by Residents

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The little quadrant that could

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A Neighborhood Where A Change Is Gonna Come

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Brookland
New Development Could Shake Up Pastoral Peace
Deanwood
A Little Bit of Country Just Inside the District’s Borders
Eckington
Not to Be Confused With Bloomingdale
H Street
A Place To Party, and To Settle Down
Langdon
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Michigan Park
A Newsletter-On-Your-Doorstep Community
NoMa
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Rosedale
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Woodridge
Big Houses, A Dusty Commercial Strip and Potential

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Capitol Hill’s Lesser Known Neighbor
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Gradually Rising
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Notable for Its Neighborliness
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Future Promise Breeds Cautious Optimism
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A More European Way of Living

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