A new condo project planned in Petworth.
At the same time that rent growth is skidding to a halt in the local Class A rental market, a new Delta Associates report shows that newly-built condominiums are seeing prices level off in all but a few sub-markets.
Overall, new condo prices were flat around the region in the last quarter, increasing by less than one percent; the Upper Northwest and Central sub-markets of DC were the lone exceptions, seeing prices go up by 8.3 and 3.2 percent, respectively. In many ways, the new condo market is following a similar path to that of DC’s overall housing market, where increased inventory is keeping prices in check.
With nearly a year’s supply of new condos on the market, the area-wide average inventory is resembling a buyers’ market. In DC proper, supply rose by four months over the past year, from 8.8 to 12.8 months. With 794 units, the Capitol East neighborhood has the largest active supply in the city.
Despite high supply levels, Delta Associates maintains an optimistic outlook for the new condo market, anticipating that demand will ramp up along with continued job growth and a slowing construction pipeline.
“The total 36-month pipeline has steadily shrunk from just under 7,000 two years ago to 5,778 today,” Jonathan Chambers of Delta Associates explains. “We expect annual price growth to remain flat through the remainder of 2017 into the first quarter of 2018 before accelerating in the following periods, contingent on continued economic expansion.”
- 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.
- Central DC includes West End, Dupont Circle, Logan Circle, East End, and Mt. Vernon Square/Triangle.
This article originally published at https://dc.urbanturf.com/articles/blog/new_condo_prices_in_dc_level_off_as_supply_increases/13133.
Most Popular... This Week • Last 30 Days • Ever
Why condo fees are high in some buildings and low in others can be a difficult questi... read »
When sellers haven't quite lined up their next house before their settlement date com... read »
In this edition of First-Timer Primer, we look into the question of how to determine ... read »
The preferred mortgage product among most home buyers is the fixed-rate mortgage. How... read »
Here's what you need to know about reporting profit made from the sale of your home.... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
Virginia's homebuyer assistance programs can seem complex. This edition of First-Time... read »
In this edition of First Timer Primer, we take a closer look at what you are actually... read »
To help home buyers and sellers both novice and seasoned, UrbanTurf is running a seri... read »
A recent transaction shows that the housing market isn't cooling off everywhere.... 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