While COVID-19 continues to impact the Washington Metropolitan Area condo market, the shift in new condo sales activity away from Washington, D.C. towards the suburbs of Maryland and Virginia has started to reverse itself.

Though a lack of new development remains part of the reason behind the lower sales in Washington, D.C., the past few quarters have seen activity start to pick up with the market shifting back to a more normalized level as buyers warm up to urban living again in anticipation of a post-pandemic world.

Generally, condo development and sales activity are shifting closer to the core of the Washington Metropolitan Area. However, price growth has moderated, with softness in Washington, D.C. as price spikes persist in select suburban markets.

In addition, sales pace in the suburbs well outperforms Washington, D.C.

Washington D.C.

After a significant slowdown in quarters prior, condo sales in Washington, D.C. continues to steadily rebound with the help of the usually busy Spring selling season coupled with improved economic conditions.

In Washington, D.C., NoMa and H Street led the market in condo sales activity during the third quarter of 2021 with 46 sales, followed by the Capitol Hill and Riverfront Southwest submarket with 39. These two submarkets also led the city in sales over the past 12 months.

A total of 861 condominium units are currently marketing or under construction in Washington, D.C., down from last quarter.

Northern Virginia

Northern Virginia maintains its market-leader status with most of the new condo development and sales activity.

In the close-in Northern Virginia suburbs, Alexandria led in sales in the third quarter of 2021 with 29, followed by Arlington with 22. Alexandria also led in sales over the past 12 months with Tysons Corner edging out Arlington with 61 and 59 sales, respectively, over the same period.

In the close-in Northern Virginia submarket, prices increased slightly in Tysons Corner and Arlington while experiencing a more significant, but still modest, increase in Alexandria.

In Alexandria, prices now average close to $1,000 per square foot and are up on average over 29.6% annually over the past five years.

Maryland Suburbs

In the Maryland suburbs, condo sales and condo development pace significantly behind that of Washington, D.C. and Northern Virginia. With that, average price per square feet remains competitive with Northern Virginia and Washington, D.C. at just over $800 per square foot for the third quarter of 2021 and condo supply — the amount of time it would take for the current active inventory to sell — remains competitive at just under two months in comparison to over 33 months of supply in Washington, D.C.’s Columbia Heights and 17 months in Alexandria, Virginia. 

TTR Sotheby’s International Realty is a licensed real estate brokerage in Washington, D.C., Maryland, and Virginia.