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The DC Area Condo Market Holds Steady

by Nena Perry-Brown

The DC Area Condo Market Holds Steady: Figure 1
A rendering of The Verse in Tysons Corner. Click to enlarge.

The DC area market for new condos continues to exhibit strength in 2018.

The latest new condo report from Delta Associates finds that while slighlty fewer new units sold in the second quarter of 2018 than in the first (414 sales vs. 432 sales), the market still has strong momentum with sale prices up by 1.1 percent regionwide. 

Northern Virginia led the region in new unit sales, with 207 sales compared to 124 in the District and 83 in suburban Maryland. As for submarkets, Capitol East remains dominant, accounting for 56 percent of all new condo sales in DC with 70 sales in the second quarter of the year. Prince George's County was not far behind, with 67 sales, driven by new units delivered in National Harbor.

The DC Area Condo Market Holds Steady: Figure 2
Area-wide new condo sales. Click to enlarge.

With over 2,100 for-sale multifamily units expected to break ground this year, the 36-month pipeline in the region is 3 percent higher than it was a year ago. Over 40 percent of the new condos in the pipeline will be built in DC proper.

"The region’s condo market is projected to be in balance over the next 36 months; however, market conditions vary significantly between submarkets," the reports states. "Generally, there’s projected to be a shortage of product in Northern Virginia, while in the District there is projected to be more supply than demand."

Second quarter tallies counted 13.9 months of supply in the metro area, a 3.2 month increase year-over-year. In DC proper, inventory rose from 10.9 months to 13.2 months of supply. Despite the expected continued growth in inventory, demand could be concentrated in certain markets such that price growth remains solid overall.

Sub-market definitions:

  • Capitol East includes Capitol Hill, Capitol Riverfront, Hill East, NoMa, Southwest Waterfront, and everything east of the Anacostia River.

This article originally published at https://dc.urbanturf.com/articles/blog/the-dc-area-condo-market-holds-steady/14202

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