[RP TownTalk] U.S. Housing Bust!

[Rob Oppenheim]

Regina's article was interesting (some of you may not have received her email due to continuing server problems, it is repeated below).

Below is another article in the Washington Post about the Washington area condo market cooling off. It notes that there are 5 times as many condo units for sale as there were a year ago.

This is of concern to me, because when condos do not sell they either sit vacant or more likely become rental property. A mix of owners and renters is fine, but our town is already almost 60% renters (according to the 2000 census at http://censtats.census.gov/data/MD/1602466635.pdf ). Owner-occupied was 43%, and I would guess has fallen even lower since then.

Perhaps the most important discussion is the appearance of these proposed buildings and the character we want in the heart of our historic district. I hear that the Patriot Group has made revisions, but as far as I know they are still 5 stories tall. Hopefully we will get to see these revisions soon. The next M-UTC is Wed, April 5, 2006, and Patriot Group is scheduled to be there. However, they were scheduled to appear at the last two M-UTC meetings and postponed. So pay attention to the Town-Announce (or call Town Hall) before the meeting.

Area Condo Sales Cooling After Record-Setting Year
By Kirstin Downey
Saturday, January 7, 2006; Page A01

Sales of new condominiums reached record levels in the Washington area in 2005, according to a new report, but the supply of new condos has begun to outstrip demand.

..far more units are being readied for the market, ... It appears some builders are proceeding with projects they have spent years developing, even as the supply of new units rises, in hopes their projects will be more successful than the competition.

"Even with sales at record highs, there is so much product being delivered that the market has a different feel to it," said Gregory H. Leisch, chief executive of Delta Associates.

Leisch said many condo developers are proceeding because they must financially. "They paid so much for the land, and they are so far down the development timetable, they are so far committed, that, practically speaking, they can't stop," he said.

"I think without question the condo market will continue to soften," said Kenneth Wenhold, Virginia and Maryland director for MetroStudy, a Houston-based real estate research firm that specializes in the new-home market. Wenhold said there are five times as many condo units for sale as there were a year ago.

You can read the full article here:
http://www.washingtonpost.com/wp-dyn/content/article/2006/01/06/AR2006010601981.html?referrer=email
(requires free registration).

Regina Wrote:

Nancy made a valid point. Here is a recent article specific to D.C. (Note that Washington Post requires that you register to read online). 

And here is a blog in BusinessWeek on the topic: 
http://www.businessweek.com/the_thread/hotproperty/archives/2005/07/washington_dc_b.html

Reports Indicate Glut of Condos in D.C. Area
By Sandra Fleishman
The Washington area housing market has softened but is still in relatively decent shape except for what appears to be a glut of condos, according to two studies released yesterday. But the researchers came to different conclusions about the potential for problems stemming from condo overbuilding.

To view the entire article, go to 
http://www.washingtonpost.com/wp-dyn/content/article/2006/01/30/AR2006013001286.html?referrer=emailarticle
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