In this video, we’re continuing our conversation about absorption rates.
But first, I’d like to thank Emily Gordon and Phillip Allen of our DC offices for letting us shoot this video in their incredible new listing at 3039 16th Street, NW in Columbia Heights. Unique is a word that’s overused – but this 2 level, 2 bedroom condo really is unique. 20-foot ceilings, 18-foot windows, magnificent views, incredible smart home features and a private elevator right to the unit. Take a look at the info below, click on the link and enjoy!
Evaluating the impact of absorption rates is really a matter of leverage. The higher the rate, the more bargaining power the seller has. Let’s take a look at the conditions right here in Columbia Heights. Over the last several months, the absorption rate for condos has been right around 35%. That’s a seller’s market, and the results show that. Since the first of the year, condos here have sold for an average of 99.5% of original list price in an average of 34 days. Good stuff!
On the other side of the river in the Shirlington area of Arlington County, condos are less expensive and there haven’t been many on the market. Absorption rates have been running between 70% and 80% – what we call an extreme seller’s market. And the results are pretty staggering. Properties have sold for an average of 2% above original list price in an average of just 11 days.
Two really good markets, appealing to two different kinds of buyers. As we have noted before, the takeaway is simply this: every market is different and if you’d like to know more about how things are in your neighborhood, we encourage you to call your favorite McEnearney Associate and we’ll give you an in-depth analysis.
As always, we appreciate your checking in with us – and don’t forget to check out the link to this wonderful condo!
—David Howell, “The state of the D.C. area real estate market”