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
Most Popular... This Week • Last 30 Days • Ever
After a slew of developments delivered in Ballston last year, — totaling over 1,000... read »
The planned 8-unit development would be located on K Street right along the Potomac R... read »
Loan recasting is a growing practice- so what is it?... read »
The project would replace a concrete plant and would deliver the neighborhood's first... read »
The next phase on the Center Block would deliver 166 apartments and 221 hotel rooms.... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... read »
STAY DC provides rental aid and utility payment grants to at-risk District residents ... read »
Federal Realty plans to eventually file a planned unit development application for th... read »
The project would also deliver new office space for the fraternity, which has been at... read »
With this weekend's DC houseboat tour a day away, UrbanTurf thought it only fitting t... read »
President Obama travels to Denver this morning to sign the stimulus bill that has bee... read »
In this week's installment of Ask An Agent, a reader wonders if there is a rule for h... read »
As The Wharf prepares to begin construction, DC's houseboat community heads to its ne... read »
In this week's installment of Ask An Agent, a reader asks a fairly common question th... read »
DC Real Estate Guides
Short guides to navigating the DC-area real estate market
We've collected all our helpful guides for buying, selling and renting in and around Washington, DC in one place. Visit guides.urbanturf.com or start browsing below!
Intro guides for first-time home buyers
Awesome and unusual real estate from across the DC Metro