The new condo market remains resilient as low supply dampens sales in the DC region.
The latest quarterly report from Delta Associates shows a market experiencing slower sales and marginal price growth, as prices inched up 1.1 percent year-over-year regionwide. Despite listing prices nearly doubling in the National Landing area of northern Virginia, the new condo market has hewed to the narrative seen across the metro area, with prices rising by just 0.4 percent year-over-year in Arlington and Alexandria.
Price growth in the DC submarket was flat, with prices going up by 0.1 percent year-over-year solely off the back of the Capitol East submarket, where prices increased by 1.8 percent. Meanwhile, suburban Maryland had the strongest price growth (3.4 percent), with Prince George's County leading the way as prices there rose by 5.8 percent.
1,251 new condos sold in the region over the last year, 18.4 percent fewer than the 1,533 sold in the 12 months prior. DC accounted for 140 of the 364 units sold this past quarter, barely edging out northern Virginia (139 units sold). Nearly three out of 4 sales in DC were in the Capitol East submarket, where sales jumped from 35 sales in the first quarter to 101 in the second. Delta Associates expects the strong sales pace in this submarket to continue as additional units deliver, illustrating the overall dynamic of the market: thin inventory is determining when and where prospects are able to buy.
Lack of supply in Arlington and Alexandria led to just 12 new condo sales in the second quarter; Loudoun and Prince William counties led the northern Virginia market with 65 sales. It remains to be seen how low inventory will continue to impact the new condo market, and the shifting economic balance in the region will also determine how things develop.
"The region’s bread and butter—the federal government—continues to shrink, and while the region’s private sector will continue to expand with the arrival of Amazon’s HQ2, the growth with likely be uneven geographically," the report states. "We also anticipate more apartment and condo product will be built in Arlington and Alexandria due to Amazon HQ2. Of the anticipated demand for multifamily product, the split will favor apartments, but condos will make up a larger share than recent development trends would suggest due to the high average income of the Amazon HQ2 workforce."
This article originally published at http://dc.urbanturf.com/articles/blog/low-supply-continues-to-define-area-new-condo-market/15671
Most Popular... This Week • Last 30 Days • Ever
Here's what you need to know about reporting profit made from the sale of your home.... read »
A final look for the year at the DC neighborhoods where home values rose the most thi... read »
Residential development in this jurisdiction-straddling neighborhood got a major kick... read »
A new residential development is on the boards in DC and the design is reminiscent of... read »
DC Council initially passed a bill to regulate short-term rentals over three years ag... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
A Tysons development has the area's five tallest buildings on the boards.... read »
Homeowners will be able to expedite the ADU approval process with two options for one... read »
A rezoning may be in the works for the AutoZone site.... read »
The priciest condo to ever sell in DC just closed last week, nearly a month after the... 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