Sales still off
Change in total dollar volume of residential sales (overall)
Year Decline
2006 -19.8%
2007 -12.14%
2008 -22.5%
In the first 11 months of 2009, the total dollar volume of sales rose 5 percent over the previous year.
Note: D.C., Montgomery, Fairfax, Arlington, Alexandria, Falls Church
Source: Evers and Co. Real Estate Inc.
New condominium sales in the Washington area jumped by more than 30 percent from 2008 to 2009, as federal tax credits and rock-bottom interest rates helped buoy the market. The federal tax credit for first-time homebuyers, record-low interest rates and a general improvement in the economy all contributed to the bump, said William Rich, a vice president at real estate consulting firm Delta Associates, which released the figures.
Indeed, many condos featured attractive prices for first-time purchasers, who have enjoyed the dual benefits of a federal tax credit and historically low mortgage rates, said Anirban Basu, chairman of Sage Policy Group, a Baltimore economic consulting firm.
“This is very much in keeping with the types of increases in residential sales overall, regionally and nationally,” he said.
Some developments also are marketing toward younger buyers. The Lansdowne Town Center development in Loudoun County is tryingfor an urban feel, said Danilo Bogdanovic, a real estate agent in Sterling.
“I think they’re attracting a younger demographic by the price … and the feel of the community,” he said.
The increase in sales, though, does not indicate that the condo market or broader real estate market is headed toward a self-sustaining recovery,Basu said. There must be job growth for such a recovery to occur, he said.
Another concern is a recovery that occurs too quickly, which could re-inflate a housing bubble similar to the one that led to the economic collapse. For example, in Alexandria, overall residential real estate sales soared from 84 in November 2008 to 183 in November 2009 — the most homes sold in any November since 2005, City Manager James K. Hartmann wrote in a memo to the City Council.
But Rich didn’t expect a new bubble this year.
“One difference is that the credit markets are still frozen to an extent, so you won’t see much development in 2010,” Rich said.
Delta defines the Washington area as the District, Alexandria, and Arlington, Fairfax, Loudoun, Prince William, Prince George’s, Montgomery, Anne Arundel and Howard counties.
