For the last 18 months, reports have been coming out regarding the chronically low inventory of homes for sale in the DC area. It now appears that the supply is increasing, at least for one property segment.
The number of unsold condo units in new projects or those under construction (and not yet marketing) rose to 3,308 in the DC area by the end of 2013, an increase of 1,000 units from the third quarter when the new condo supply hit its lowest level in a decade. Additionally, 1,853 units are planned to start sales within the next 36 months. These numbers were published in a report out from real estate research firm Delta Associates on Monday.
Still, the inventory of new condo product varies greatly depending on sub-market. For example, in central and upper NW DC proper, there is a 4.2-month supply (and far less in certain neighborhoods), according to the report. However, in Arlington/Alexandra, there is about a 20-month supply, and in Prince George’s County close to a 50-month supply.
From the Delta report:
Most of the District remains supply-constrained over the short run; however, over the next 36 months, supply and demand is estimated to be in balance, while shortages are expected in the suburbs . We estimate that over 1,500 units will come to market during the next 36 months after taking into account attrition.
Following are a few more findings from the report:
- In 2005, the average number of units in a new or converting condo project was 93. Today, the average number of units in a new development has dropped to 41.
- The average effective price per square foot for new condo sales in the DC area rose by 5.7 percent in 2013, the strongest annual price growth since 2005.
- Delta Associates has identified 19 Class A 80-150-unit apartment projects that are under construction (a total of 1,948 units) that could convert to condos.
The rendering of the condo project pictured above is called 1055 High and will be located in Georgetown.
This article originally published at http://dc.urbanturf.com/articles/blog/new_condo_supply_in_dc_area_on_the_rise/7961
Most Popular... This Week • Last 30 Days • Ever
The priciest condo to ever sell in DC just closed last week, nearly a month after the... read »
The former Washington Nationals pitcher got his number in McLean.... read »
It would be the second multifamily development in the neighborhood in recent years to... read »
The 19-story residential project will replace the now-closed hotel.... read »
The project could deliver up to 38 apartments and new space for the church.... read »
UrbanTurf has compiled virtual looks at large new developments around the DC region.... read »
The 16.5-acre property along the banks of the Potomac known as River View sold on Fri... read »
A Tysons development has the area's five tallest buildings on the boards.... read »
UrbanTurf asked around to find out why the woonerf is seemingly popping up everywhere... read »
Homeowners will be able to expedite the ADU approval process with two options for one... 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