
1 minute read
EXECUTIVE SUMMARY
Urban Pace is pleased to present its 2022 Year-End Condominium Report for the prime urban markets in the Washington, DC region. The first section of this report provides an overview of all activity in the DMV for condominiums, townhomes, and single-family homes using a combination of data from Bright MLS and our proprietary database, UPVelocityTM. Our research shows that rising mortgage rates had increasingly large effects as the year went on and led to the lowest sales activity levels in the last five years. Additional factors, including a decline in consumer confidence and lingering effects of COVID-19 compounded the impact of increased mortgage rates, leading sales activity to drop by 24% year-overyear. No jurisdiction or product type was spared from the downturn in activity, but pricing stayed strong and grew slightly over 2021. Rents also increased as concessions from 2020 and 2021 expired, increasing housing costs for both buyers and renters. Our study of the new construction condo market found that condo fees rose significantly, and recent sales continued the trend toward efficiently sized units, including a noticeable uptick in price per square foot for units with dens. Finally, we considered how these trends will continue or change course in 2023. We expect activity in the spring market to be a leading indicator of the rest of the year’s volume and consumer confidence.
2022 Takeaways
Advertisement
Mortgage rates drove up the cost to own (the estimated payment for the average sale price in December was 38% higher than a year before).
Market conditions curbed sales activity (-24% yearover-year).
Despite decreased activity in the market, pricing remained strong (+5%).
Inventory remained low for both new construction and resale condos.