ALEXANDRIA, VA--(Marketwire - Aug 17, 2011) - McWilliams|Ballard announced the release of its 2011 Mid-Year Washington Metropolitan Area Condominium Overview today. The overview is a comprehensive analysis of the new and resale condominium market as well as the overall multifamily market in the Washington Area over the past 6 months.
McWilliams|Ballard reports that gross sales of new condominiums totaled 876 units in the first half of 2011, a 38% decrease over the first half of 2010. Every jurisdiction except Alexandria experienced a decline in new condo sales in the first half of 2011 when compared to the first half of 2010. Townhome-style condominiums made up 24% of the first half sales, down from 31% for the same period 2010, however their share of sales is expected to increase in the next four quarters as over 50% of the remaining inventory is of this type. Currently, there are 3,210 units available on the market, down 86% when compared to 18,852 units at its peak in 2006. These 3,210 units equate to a market-wide 2.5 years of condominium supply, while places like The District have far less, with approximately 1.2 years of supply.
For the fourth quarter in a row, the District and Arlington have failed to combine for more than 50% of the Metro Area sales, further demonstrating the lack of supply since these two areas have historically driven new condominium sales. McWilliams|Ballard forecasts that the Washington Metro Area will face a supply shortage in the next 12-18 months, especially in close-in submarkets, as the available inventory of new condominiums continues to dwindle. McWilliams|Ballard anticipates that of the 10,560 multi-family units currently under construction, approximately 25% are either selling or will be for-sale product upon construction completion.
"We've reached a point where there is very little quality, new condominium supply in the market. Some projects have started construction and some have even started sales, but the market will be waiting until at least 2012 for a larger-scale new condominium development," says Chris Ballard, Principal at McWilliams|Ballard, the Washington, DC-based residential real estate sales and marketing firm that produces the report. "As we move into the second half of 2011 and beyond, we are beginning to see some movement in the for-sale multifamily pipeline, and anticipate that some projects could break ground as early as 2012."
McWilliams|Ballard's Mid-Year Condominium Market Overview is available via download at 2011.mcwilliamsballardreports.com/colleague
McWilliams|Ballard, based in Alexandria, Virginia, is a sales and marketing firm specializing in the sales and marketing of condominiums and townhomes. While based in the Washington DC Metropolitan Area, McWilliams|Ballard has clients nationwide, creating partnerships with developers and builders to provide sales and marketing solutions from project inception to the final closed sale. In addition to start-to-finish sales and marketing, the firm also provides consultation and market research used by some of the largest development firms in the country. Founded in 1996, the firm's expertise now spans more than ten states nationwide including Virginia, Maryland, Connecticut, Florida and the District of Columbia. As one of the most successful project development real estate and marketing firms in the country, McWilliams|Ballard has sold and settled more new homes than any other firm in the Mid-Atlantic Region, and is consistently ranked in the top 5 of national firms with a focus on for sale multi-family product.