Home | Newsletter | Advertise
loading...

A Flat Year for New Condo Sales in DC Area Sets the Stage For a Resurgent 2018

  • January 16, 2018

by Nena Perry-Brown

A Flat Year for New Condo Sales in DC Area Sets the Stage For a Resurgent 2018: Figure 1
The Bower, the first new condo building at The Yards.

The DC area housing market as well as the new condo market had an unpredictable 2017, with periods of flat prices and rising inventory, in the District especially. Now, a new report shows that the slow down in the condo market has set up 2018 to see a resurgence in activity.

A new Delta Associates report finds that regional new condo prices only inched up by 0.9 percent in 2017, as the net number of condo sales (1,333) dropped off by 24 percent compared to 2016. Consequently, inventory increased to hit a 12.8-month supply at the end of the year. 

A Flat Year for New Condo Sales in DC Area Sets the Stage For a Resurgent 2018: Figure 2

Condo sales in 2017 compared to 2016

This increased supply of new condos was particularly pronounced in the District, where inventory rose from 9.4 months in the fourth quarter of 2016 to 15.1 months in the fourth quarter of 2017. Among the city's submarkets, the range of supply is anywhere from 6.7 months in Mideast to 32 months' worth in Upper Northwest.

Over the course of the year, 1,104 condos broke ground in the region, a notable drop from the 1,838 units started in 2016; the drop off is partially the result of several hundred units being delayed. Meanwhile, 1,912 units are projected to begin construction in the area this year, creating a 36-month pipeline of 4,090 units.  

"After a brief lull in construction activity, we expect starts in 2018 to rebound along with sales activity," the report states. "Price growth should continue to be moderate in the first few quarters of 2018 before accelerating later in the year and 2019."

Sub-market definitions:

  • Capitol East includes Capitol Hill, Capitol Riverfront, Hill East, NoMa, Southwest Waterfront, and everything east of the Anacostia River.
  • Upper Northwest includes most neighborhoods west of Rock Creek Park.
  • Mideast includes includes Brookland, 16th Street Heights, Petworth, Riggs Park, and Columbia Heights.

See other articles related to: delta associates, dc condo market, dc area condo market

This article originally published at http://dc.urbanturf.com/articles/blog/far-fewer-sales-of-new-condos-last-year-lead-to-high-levels-of-supply/13451

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!

First-Timer Primers

Intro guides for first-time home buyers

Red Flags Revealed During a Home Inspection Top 5 Tax Breaks For Homeowners Tax Relief for DC Homeowners
Condo Fee Tutorial What is a Rent Back? 10 Ways To Tell If a Home Renovation is Well Done
Obtaining a Basic Business License For Your Rental What is an Adjustable Rate Mortgage? The Splitting the Rent Formula
How Much Cash Do You Need to Buy a House? Is This Condo Building Financially Healthy? Interest Rates and Mortgage Points
The Scoop on Mortgage Insurance

Unique Spaces

Awesome and unusual real estate from across the DC Metro

The Most Intriguing Loft in DC The R Street Firehouse DC’s One-Room House
Dupont Circle’s Old Frat House To Become Alley Home Best Transition From a Garage To a Home The Roundhouse
Tilden Gardens Restaurant-Turned-Home Hits Market Next Week Logan Circle’s Most Intriguing Garage Frank Lloyd Wright Goes Green in Kensington
Sears Bungalow Gets a Modern Makeover Old Town General Store Becomes Three-Level Home Making the Most of a Skinny House
A Studio 27 Renovation on Capitol Hill Once a Carriage House, Now a Home The Bank that Became a Home
From Pie to Hooch to Heroin to Home The Live-Aboards of Gangplank Marina A Treehouse with Rock Creek Park As A Backyard
Modern Tranquility in Sperryville Saddle Up For Stable Living Throwing a Curve at 550 Square Feet
A Modern Hilltop Retreat Tilden Street Restaurant Becomes Spacious Home Focus on Design: A Vastu Unit at 22 West
The DC Area’s First Net Zero Home A Yankee Goes Green DC’s First Carbon Neutral Home
Eco-Friendly Alley House Off H Street The Gym, The Stables and The Firehouse