WASHINGTON, DC-Drummond Real Estate & Land Development, LLC is developing a 16-unit luxury condo at 1443 Chapin St., NW. It has tapped UIP General Contracting for the $4.5 million ground up project, which is set to deliver in the third quarter of 2014. The 23,000 square foot building, which will be called The Victoria, will consist of four stories plus a penthouse. Sales are being handled by Urban Pace.

Condo sales in the District, which only recently began to regain momentum after the recession, are in a funny place at the moment, according to the latest Delta Associates' report on the asset class. The annual new condo price change was positive metro-wide for the sixth consecutive quarter, Delta noted—however sales volume fell in the third quarter of 2013 to its lowest level since the fourth quarter of 2011. The reason for the decline in sales can vary depending on whether you view the proverbial glass being half full or half empty, the research company said.

"The glass half empty view is that sales volume is off of prior period levels because interest rates are up and sequestration has impacted buyer confidence, if not appetite, to buy," it said in its report.

Conversely, the glass could be seen as half full--which is Delta's view--because sales volume of new units is off due to the fact that the existing supply of new condos available for sale is at its lowest level in a decade, and this has curtailed sales activity. If that is the case, The Victoria will be delivering into a welcoming environment. "Only 2,223 new units are currently available for sale metro-wide. With such a small amount of inventory, buyers have less choices and less opportunity to purchase units, hence the decline in sales activity," Delta said.