Over the past six months between July 1 and December 31 sales of Washington DC Condos and lofts sells fell almost 30 percent when compared with the same six month period in 2009. According to data gathered from the MLS, a total of 1156 condos and lofts were sold during this six month period in 2010, down from the 1642 units sold for the same period last year.
Over this same six month period between July 1 and December 31 the sold prices for Washington DC condos and lofts increased by almost 10 percent.
Price increases while the number of units sold decreases is really not new. I think the rise in prices has more to do with the mix of condos sold than buyers willing to pay more for comparable condos compared to a year earlier.
Although it not apparent by the raw numbers, but put in proper context the numbers spell a rosy pictures for Washington DC condo buyer.
$8000 keep that number in mind.
Remember the $8000 buyers tax credit.
Let’s take a look at November 2009. In November 2009 299 condos were sold. By comparison November 2010 183 condos were sold and 137 in November 2008. The figures for 2010 were tremendously boosted by the First Time Home Buyers Federal Tax Credit . The credit was initially scheduled to expire the last day of November 2009 before it was extended.
Back then there was a mad dash for the finish line, by buyers, lenders, title companies and realtors. Similar numbers can be seen leading up to June 30 the deadline for contracts to close so buyers qualify for the credit.
Post Credit environment.
While the 8000 tax credit was a windfall for buyers the disappearance of the tax credit has also proved to be beneficial to buyers. The immediate impact of the credit expiration is obvious by the sharp decrease in the number of Washington DC condo sold over the past six months. There are once again fewer buyers vying for a large supply of condos.
So even though there in no credit for today’s buyers the saving they reap because of less competition, the large supply and the desperate developers, banks, sellers, and real estate agents all equal a windfall for buyers..
DC's Condo Guy (Al Matlock) www.dccondoguy.com dccondoguy@live.com 401/452-2278
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