D.C. Condo Sales Expected to Rise, According to Report
Condos are a popular housing option in D.C. as they bridge the gap between owning traditionally more expensive single-family homes and renting apartments. While the market has been unpredictable lately, according to UrbanTurf’s reporting, D.C.’s condo market is set to be on the rise again in 2018.
While suburbs, particularly to the west of the city, saw a growth in sales in 2017 over 2016, the market was starkly negative for most areas within the District, UrbanTurf reported. New condo prices rose very slightly by 0.9 percent, while the net number of sales dropped by 24 percent compared to 2016 numbers, amounting to only 1,333 sales in 2017.
UrbanTurf included a visual of how the different regions in D.C. fared. According to that visual, condo sales in Capitol East — the sub-division that includes Capitol Hill, NoMa, Southwest Waterfront and other surrounding neighborhoods — saw decreases in the range of one to 25 percent. Sales in the mideast — which includes Brookland, Petworth, Columbia Heights and other northeastern neighborhoods — had sales decline 26 to 50 percent. Sales in upper northwest — which includes neighborhoods west of Rock Creek Park, like Glover Park, Georgetown, and Burleith — saw the worst declines, with sales dropping over 50 percent.
UrbanTurf also took a look at condo inventory, a measure of the active listings of condos versus the number of condos sold in the last 12 months. As far as overall condo inventory goes, D.C.’s inventory had a 12.8-month supply at the end of the year, UrbanTurf noted. New condo inventory itself rose from a 9.4-month supply up to a whopping 15.1 month supply in the final quarter of 2017.
The number of condos that broke ground in 2017 also declined, UrbanTurf noted, in part due to several hundred units being delayed. This amounted to only 1,104 condos breaking ground in the region, as opposed to the 1,838 units that broke ground in 2016. This pipeline will be expanded in 2018, with 1,912 units planned to begin construction this year.
If you’re interested in the specifics, UrbanTurf broke down the development pipeline late last year.