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D.C. Condo Market Expected to Continue to Accrue Value Gains in 2014

As the New Year approaches and all those with a vested interest in the D.C. condo market look to the magic crystal ball to see what the market might bring over the next 12 months, there are a few concrete facts from the past year—as well as some major economic predictions for the following one—that at the very least can act as well-educated indicators for the future of this market.

To start off, anyone who bought or sold a condo in the D.C. area probably knows that they got in on one of the hottest markets in more than half a decade. The National Association of Realtors® (NAR) counted home and condo prices as rising 11 percent this year—a major gain spurred on by historically low mortgage rates that motivated a surplus of buyers and investors to snap up condos from Bethesda to Alexandria to D.C. proper. There were also amazingly ambitious projects that took the entire D.C. real estate market by storm and paved the way to an era of renewed construction and architectural inventiveness, such as the massive undertaking of the $950 million CityCenterDC complex, and its top-of-the-line condos.

And speaking of construction, that’s where one can begin speculating on the future of this upwardly mobile market. Real estate analytics company Trulia recently released a number of predictions for 2014, and among them were an increase in the number of available condos due to both construction and the renewed seller confidence that has added to the massive sales figures seen in 2013. Yes, contractors, architects and investors have taken heed of the fact that demand was at a fever-pitch level this year, and they’ve responded by beginning a wide array of new projects in the D.C. metro area. And even more specifically to the area, Trulia listed the Bethesda-Rockville-Frederick area as one of its 10 markets to watch in 2014, thanks to what it noted as, “recent job growth and longer-term economic success, as well as recent construction activity typical of vibrant markets.”

As for where condo prices are headed, NAR predicts that houses and condos will continue to gain value to the tune of about 6 percent by the end of 2014. There are also pockets of areas throughout the city where you can see even more price acceleration. This includes hot spots like Anacostia, Deanwood, Brightwood, Congress Heights, etc.

So while it may be impossible to tell exactly what the New Year will shepherd in terms of D.C. real estate trends, it seems safe to say that the trends of value growth that marked this year will continue, if at a somewhat slower clip. And it should also be noted that mortgage rates are expected to continue rising throughout 2014.

To hear more about D.C. condos trends or to explore this fascinating condo market, please contact our team of D.C. condo experts.