Condos, condos, condos. Condos have been a major part of the market in CharlAlbemarle for the past several years. As readers know, I use other markets as bell-weathers for the Central Virginia market – what does the cancellation of two DC condo projects relate to ours?
Active Condos in CharlAlbemarle 2001-2006 (blue is 2006, pink is 2005)
This article from the WSJ is worthwhile:
“I knew we were in trouble when the guy who delivered my television a few weeks ago said he had bought two conversions [in the area] and was trying to flip them,” says Kolter chief operating officer Peter Donnantuoni, pinning most of the blame on speculators for driving up prices to unreasonable levels.
Sold Condos in CharlAlbemarle 2001-2006
Data Source: CAAR MLS
Compare today’s analysis to one just a few months ago in the DP with this telling quote:
In addition to the first-time buyer trying to get his foot in the door, a sizeable portion of investors or â€œamateur landlords,â€ retirees and recent transplants help fuel the condominium market …
There are an awful lot of condos on the market right now – two properties that I am marketing in the Turtle Creek development have been on the market for over two months. They are well-priced in relation to their competition and last year at this time would have sold in less than two weeks. There are now eleven properties on the market in Turtle Creek – a huge number. We are in uncharted waters.
Condo conversions have been a “good thing,” particularly with regards to affordable housing. It seems that a lot of buyers are taking their collective breaths right now.