Inside the DC Bubble

Prices for condos and co-ops in DC have been nudging up this year. We will say it again: prices for condos in DC – not Rockthesda or 703 – are up. The median sales price is $350k, up 2.3 percent since last month.

Sales are up too. In April, there were 395 contracts for condos in DC. That’s an increase of 11.5 percent over the same period last year.

Want more: Inventory is down by 6.3 percent to 1,352 units. Adding to this trend, the number of new units on the market is down 9 percent, with only 640 new units on the market.

Bottom Line: It seems neither buyers, nor sellers, have an advantage, though the balance is tipping toward sellers. See last month's numbers.

source: Greater Capital Area of Realtors

Prices for Single-Family homes in DC have pretty flat over the past 12 months. The median price in April was 505k, up 1.3 percent from a month ago.

But sales are down and inventory is growing. In April there were 362 sales, down 14%, over the same period last year. And total market inventory grew to 1334, up 9.25% from the year ago period.

Bottom line: Prices are hold their own so sellers should be pleased, but there are warning signs that should give buyers some hope for better days ahead. See March numbers.

Greater Capital Area of Realtors

The whole region remains underserved as the growing population continues to demand more retail services, particularly in DC where there is only 8.1 square feet of retail space per capita (SF/Capita), said the Spring 2007 Retail Outlook from Delta Associates. This compares with the Metro area average of 24.4 SF/Capita and the national average of 20.3 SF/Capita.

Plus, it's not like there is alot of space sitting empty either. Compared to the national vacancy rate of 7.2%, DC, as well as Loudon and Fairfax Counties, have vacancy rates below 1.0%.

This is shocking given the number of condos that have been built over the past decade or so. And are still on the drawing board.

Given the way the DC population grows each day with office workers and tourists, the amount of retail should be relatively high, not relatively low. Part of the problem is the continued misperception of DC has as the home of the poor and unsophisticated. So unture and so hard to change.

Here is what the WashExam had to say.

The bueraucrats at the Census bureau out in Suitland finally figures out D.C. is growing, reports the WaPo. All those new condos in gentrified H St. NE and Petworth really do have brought new inhabitants to the city.

What does this say about the condo glut? Perhaps the builders have caught on early and it will only be a matter of time before they are filled and prices start going up again. Perhaps in 2008. Perhaps in 2010.