Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON, DC-Condo sales in the area are on the rise after a two year trough, according to a new study by Delta Associates and McWilliamsBallard. New-unit sales volume, defined as net binding contracts written with security deposits, registered 686 units in Q3 in the area — the highest quarterly sales volume in two years. Also, in the past 12 months, there were 2,120 sales, an increase of 45% from the prior 12-month period.

Prices, however are down – albeit showing signs of moderation. Effective new condo sales prices were down in the Washington metro area by 6% from 12 months ago, according to the report, with the District down just 3%. Concessions, at the same time, are also declining in most submarkets, with the exception of Fairfax/Falls Church and the District. Area-wide concessions are averaging 3.5% of the purchase price — down 70 basis points from one year ago.

Still, though, it will take the area time to work through an overload of unsold inventory, the report also found: there are currently 7,128 unsold new units being actively marketed in the area – and 3.4 years worth of product at current rates of sales velocity in the metro area. The exceptions are Arlington/Alexandria and the District, both of which are below the metro average and approaching levels considered “product shortage”.

Separately, there are anecdotal signs that condos as an asset type are coming back to life. The “K” building at Lowe Enterprises’ mixed-use CityVista development is posting a high number of sales, it reports. The building is part of Phase 2 of the CityVista complex which includes a second facility featuring 244 rental units. Meanwhile, the “L” condo building, which was completed in Phase I of the development, has sold its entire inventory of 149 units. Located at Fifth and K Streets NW, CityVista has been developed by Lowe Enterprises, CIM Group, Neighborhood Development Company, Bundy Development Corporation, and the District of Columbia Deputy Mayor’s Office of Planning and Economic Development.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.