Shauntise Harris expected competition when she put her one-bedroom condominium on the market in April.
But she didn't know how intense that competition would get. Not only was she up against some of her neighbors at 555 MassAve, a 246-unit luxury building in the District's Mount Vernon Triangle neighborhood, but she also was competing with the project's developer, the JBG Cos. Nineteen months after starting sales, JBG still had units to unload and was offering a year of no condo fees on one-bedroom units -- an incentive Harris could not match.
Please note the pair of graphics that they include:
Number of units for sale: roughly 20K
Number of units sold last year: roughly 2.5K
That sounds like a 8-year supply to me (assuming continued demand) which is terribly unlikely because the last few years have seen above average demand because of speculation.
If we include, the number of units coming ahead of us, and we assume only 50% of them actually get built, we're talking about a 12 year supply of condos.
The market is not only going to choke; it's going to end up drowning it its own vomit.
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