Source: McWilliams Ballard, Inc.

McWilliams|Ballard Announces the Release of the 2009 Washington Metro Area Condominium Overview: Supply Tightening, Prices Begin to Stabilize

ALEXANDRIA, VA--(Marketwire - February 4, 2010) - McWilliams|Ballard announced today the release and availability of its 2009 Washington Metro Area Condominium Market Overview. The report is a comprehensive analysis of the new and re-sale condominium market in the Washington Metro Area.

In 2009 there were approximately 2,500 gross sales and 700 cancellations or defaults, resulting in 1,800 net new condominium sales in the Washington Metro Area. With this decrease in gross sales, 29% from 2008, the overall market has returned to 2002 sales levels. Despite this decrease in sales volume, the new condominium market continues to become increasingly segmented, with the District of Columbia, and the Arlington and Alexandria submarkets of Virginia seeing palpable supply constraints. These close-in markets accounted for 62% of the gross sales for the Metro Area in 2009, Areas outside the beltway are oversupplied, averaging 6.5 years of available product based on 2009 sales pace. With available new condominium inventory now below 6,000 units for the first time in 6 years, McWilliams|Ballard forecasts the Washington Metro Area will face an overall supply shortage of new condominiums over the next 12-18 months.

However, the resale market saw an impressive rebound in 2009, experiencing a 29% increase in sales over 2008. Despite the increase in sales over 2008, 45% of these sales are attributed to short sales and foreclosures. With prices in 2009 rising steadily in each quarter, the average sales price was still 10% less when compared to 2008.

As 2010 unfolds, McWilliams|Ballard predicts that of the 4,400 multifamily units that are currently under construction as rental product, between 10% and 40% will deliver as condominiums to supply the impending lack of inventory in supply constrained submarkets. Other factors including interest rates for consumer mortgages and capitalization rates developers are able to achieve, will dictate the number of these projects that enter the market as for-sale product.

"Looking back at 2009, we view it as a turning point, where the market stabilized and a sense of normalcy began to take hold," says Chris Ballard, Principal at McWilliams|Ballard, the Washington, DC based residential real estate sales and marketing firm. "With supply diminishing and prices stabilizing, the only immediate risk factor we see is the fluctuating government backed mortgage market. Rates are still at historic lows and interest in new product continues to increase."

McWilliams|Ballard's mid-year condominium report is available upon request.

About McWilliams|Ballard

McWilliams|Ballard is a progressive sales and marketing firm specializing in multi family housing. The firm creates partnerships with developers and builders to provide start to finish sales and marketing solutions as well as effective consulting and market research. While based in the Washington Metropolitan Area, the firm's experience is wide ranging with successful work in over ten states nationwide. Founded in 1996, McWilliams|Ballard has quickly become one of the most successful real estate and marketing firms on the East Coast.

McWilliams|Ballard was recently identified as the largest new home sales and marketing firm in the United States by Real Trends 500 -- an annual research report that identifies the country's largest and most successful residential firms. In 2009, the Washington Business Journal ranked McWilliams|Ballard the 6th largest Residential Real Estate Company in the Washington Metropolitan Area.

Contact Information: Media Contact: McWilliams|Ballard 703.535.5550