WOW!!! My apologies for the LONG break, but the SPRING market which is typically March, April and May started early this year (in February for us) and is STILL going STRONG!!! It has been UNBELIEVEABLE!!!!
So besides being my busiest spring market yet, here are some specifics on what has happened....
TODAY inventory on CONDOS is down to 1127 units; which is trending lower. FINALLY we have gotten on pace to absorb most of the new construction that is left (Madrigal Lofts, CityVista and Yale Steam Lofts in Mt Vernon Triangle; Metropole in Logan Circle; Solea, CityScape, Union Row in U Street....) by the END OF THE YEAR! These are some HOT projects that offer some of the BEST product out there at some of THE BEST PRICES!!!!
Since the "stimulus" has not kicked in yet and DC is still feeling the national slow down, once these dollars and programs kick in and we rise out of the recession, we will be extremely short on housing here in DC. I have discussed this for the past year with my Buyers so they know the "deals" with developers will be soon gone. Those Sellers who have NOT been able to compete with the developers will FINALLY be able to sell their properties! For this group, spring of 2010 should be a great time to sell (if interest rates are reasonable AND we see job growth improve).
Delta Associates (www.DeltaAssociates.com), who I quote all the time and respect their research and thoughts above all others, is generally SPOT ON.
Delta CEO Greg Leisch said the dwindling pipeline — now at its lowest in five years — will likely result in a shortage by 2010, causing effective prices to rise. Prices tend to rise when there inventory-to-sales ratio is at three years or less. It is currently at 1.7 years in Arlington and Alexandria and 2.8 years in D.C.
The latest stats from our MRIS posted on GCAAR (through May 2009) show that we have moved ABOVE the 2005 "peak" AVERAGE PRICE of $426.576 to $433,421. The MEDIUM PRICE is at $360,000; below the "peak" MEDIUM PRICE in 2005 of $375,000 but well above the 2006 medium of $354,100, 2007 medium of $350,000 and matches the 2008 medium of $360,000.
I ASSURE YOU that although our CONDO market has remained VERY STABLE, we have moved PASSED THE BOTTOM some time ago. To those that want to understand the location, location, location "real estate 101" meaning applied to DC, buy CLOSE to METRO, with the most ammenites, in the BEST BUILDINGS.
I promise to blog each week for the balance of the year!!!!!!!
Happy 4th of July!!!!!
