WASHINGTON, DC—DC's condo market is showing all the signs of arecovery but until more supply enters the pipeline it will bedifficult to measure its true health.

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The latest example is Otis condominiums,located off Georgia Avenue in the Columbia Heightsneighborhood. Marketed by Urban Pace, the 27 unitssold to young professionals drawn to this revitalized part of townand its night life.

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Pricing starting in the high $200,000s also helped as they madethe equation of buying versus renting in the District moremanageable.

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According to Lynn Hackney, president of UrbanPace, the continued low interest rates and an affordably pricedunit means that owning a condo remains less expensive than rentingin almost all cases.

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Located at 809, 811 and 812 Otis Place, NW, the structures wereoriginally built in 1941. They were vacant for about a decade whenThe Fortis Cos. acquired and renovated them. Manyof the buildings' original art deco elements were preserved.

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The community is within walking distance of the Petworth Metrostation and the Columbia Heights Metro station.

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Condo success stories such as Otis Place, while good on theindividual deal level, could be hampering the market's potential inthe aggregate.

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A recent report from Delta Associates findsthat the shortage of new condo product continues to hamper theWashington metro area condo market from more impressive salesvolume. With less than 10 months of supply, there are simply toofew new units available in the market, the report said.

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"The metro area is currently experiencing a phenomenon wherethere is an oversupply of rental apartment units and an undersupplyof condo product," Delta said.

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