The DC Condo Market, Part 2: Rebounding from the Bottom
UrbanTurf and McWilliams|Ballard have partnered to produce a series of articles that look at the new condo market in the DC area over the last 18 months. Below is the second article of five in the series. The report upon which this article is based is available for free download here. Also be sure to read:
Even though new condo sales reached a record low earlier this year, sales picked up as the year progressed and experts are now saying that there are better days ahead for the condo market.
In the first half of 2009, there were 1,137 total gross condo sales in the DC area and 600 net sales, a 48 percent and 30 percent decrease, respectively, versus the same period last year. (Gross sales represent all condos that go under contract, while net sales are those that reach settlement without the purchaser canceling or defaulting on the contract.) Owing to the economic situation, cancellations and defaults for condos under contract were much higher in the last 12 to 18 months than in years past, hence the disparity between gross and net sales.
Mark Franceski, director of market research at real estate sales and marketing firm McWilliams|Ballard, indicated that this trend is mostly over and that going forward gross and net sales will align much more closely.
The new sales were largely concentrated inside the Beltway, with the District, Arlington, Alexandria and Montgomery County accounting for 78 percent of sales in the region. Following is a geographic breakdown of all the new condo sales activity for the first half of 2009:
Total new condo sales, January - June 2009
Gross sales in the second quarter of 2009 were 12 percent higher than in the last quarter of 2008 and 37 percent higher than in the first quarter of this year. This increase is a positive signal that the market started bouncing back after reaching its lowest point in early 2009.
New condo inventory in the DC Metro, 2006 - 2009
Here is one of the most illustrative statistics from the report: The inventory of new condo units in the DC metropolitan area currently stands at around 6,500, the first time inventory has been below 7,000 units in more than five years. (It peaked at nearly 19,000 units in mid-2006.) Franceski told UrbanTurf that if gross sales continue at the current pace of about 2,300 per year without new condo projects replenishing the supply, everything available will sell out in two and a half to three years.
“We consider right around two years of supply to be healthy,” Franceski said, adding that the current supply is being skewed higher because of a large number of foreclosures and slow sales outside the Beltway.
Sales of new condos in the District accounted for almost half of the region’s total gross sales in the first half of this year. Most of the sales activity was in Northwest quadrant neighborhoods such as Mount Vernon Triangle, Logan Circle, Columbia Heights and the U Street Corridor. Following is a breakdown by neighborhood:
Total new condo sales within DC, by neighborhood, January - June 2009
The current velocity of sales in the area is about 200 per month, a rate that Franceski says is unlikely to change before next spring. “Spring 2010 is when I think the sales pace is going to start to pick up because the selection on the market will be fairly limited and people will be looking to scoop up the last available units.”
See other articles related to: dc area condo market, dc condos, dclofts, maryland condos, northern virginia condos
This article originally published at https://dc.urbanturf.com/articles/blog/the_dc_condo_market_part_2_rebounding_from_the_bottom/1325.
Most Popular... This Week • Last 30 Days • Ever
Ten years later, plans to construct nearly 150 townhomes at DC's most hotly debated d... read »
LEGO lovers will likely be first in line for the National Building Museum's latest ex... read »
JBG Smith has plans for a seven-story project along Crystal Drive.... read »
The "trailer park" where homes sell for millions; a renters utopia; and ideas for whe... read »
Airbnb's party crackdown; the return of Adams Morgan; the resurgence of Cleveland Par... read »
Virginia's homebuyer assistance programs can seem complex. This edition of First-Time... read »
The residential projects that have sprouted up on the Maryland and DC sides of the Fr... read »
With a groundbreaking ceremony on Wednesday, the redevelopment of the Georgetown Wes... read »
The 23,600 square-foot mansion just hit the market, and would set a record if it fetc... read »
The immaculately kept 100-year-old house features six bedrooms and four-and-a-half ba... 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 »
- First-Timer Primer: Virginia's Home Buyer Assistance Programs
- Mall Conversions, Trader Joes? The 1,500 Units in the Friendship Heights Pipeline
- The Four Seasons Private Residences in Georgetown Break Ground
- DC's Blaine Mansion Lists For $30 Million, A Potentially Record-Setting Price in the City
- Now Selling: A 16th Street Heights Victorian on an Island of Its Own
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