Is The Clarendon Condo Market Tightening Up?

They say that condos are the first down and the last out of any down real estate market. If that is true then it seems there is hope on the immediate horizon for Clarendon area condo owners, and thus for home owners throughout the area. Personally I have seen competition heating up in the condo market, whether it be presenting multiple offers to owners after just days on the market, or trying to help buyers understand the competitiveness of the market and the need for immediate and aggressive action.

This was not the environment this time last year, or even in the fall for that matter. Were condos selling? Sure, but right now the competition is fierce in many places, and Clarendon is no exception. In the 22201 zip code there are currently 40 condos under contract, of those 40, 31 were under contract within the first 30 days. Of those 31 condos only 1 had a price change prior to securing a buyer, AND 24 were actually under contract in 15 days or less.

Just how tight is the Clarendon condo market? Have a look for yourself:

Typically there is quite a spread between the number of “Active” listings, and the number of “Pending” contracts. You can see that in January these numbers were actually the same, and the amount of new inventory has barely been able to keep up with demand since. This is great news for condo owners, yet not so great news for buyers, who can now expect to have to make quick decisions, and compete for their property of choice.

Perhaps we should call this the slingshot chart. It is often said that things often get worse right before they experience notable improvement. After a steady performance during most of 2011 the Clarendon condo market experienced a worse than usual dip this winter, however, given the tight supply, and increased demand, average prices are reacting quickly. Unlike many other areas inside the beltway, Clarendon Condo owners have been able to successfully push the market upward. In other locations within Northern Virginia this has been tough to do.

So the question for owners is, do you sell when it’s hot, or do you wait and hope things heat up even more? At what point (if any) do buyers return to the sidelines and wait for calmer waters?

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