One DC Market Accounted for Nearly Two-Thirds of New Condos Sales Last Quarter

Closing the third quarter, overall supply was down to 13.2 months across the region. Sixty-four percent of the new condo market in the District is concentrated in the Capitol East submarket. However, this blip is not expected to disrupt the overall trends in the market.

While new condo sales in the DC area fell over the course of the last year, the market is still holding firm.

The latest quarterly report from Delta Associates shows 339 new condo sales during the third quarter of the year, a drop-off from the 414 sold in the second quarter. DC proper saw the strongest sales pace with 134 units sold; there were 112 and 93 sales in suburban Maryland and Northern Virginia, respectively.

Sixty-four percent of the new condo market in the District is concentrated in the Capitol East submarket, which accounted for 86 sales. Similarly, price growth for new condos in Capitol East outpaced any other submarket in the metro area, rising by 4.3 percent year-over-year.

Other submarkets in DC experienced flat or negative price growth, averaging out to a 1.1 percent increase citywide. Despite having the most modest sales activity in the region, prices for new condos rose the most in Northern Virginia, increasing by 3.3 percent; prices were flat in suburban Maryland.

At the end of the third quarter, overall supply was down to 13.2 months regionwide. However, this blip is not expected to disrupt the overall trends in the market.

“Despite the decrease in the number of units under construction or marketing, the 36-month pipeline increased from 5,778 units (before attrition) to 6,170 over the past year,” the report states. “We expect more of the same in terms of moderate sales growth for the period ahead, although some tightening in some submarkets could lead to more robust price growth.”

Sub-market definitions:

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

Source

2018-10-19T19:25:58+00:00October 19th, 2018|