Montgomery County condominium prices surged 9.7% from May to June, Axios D.C. reported this morning. Since taking a majority of the seats on the Montgomery County Council in 2002 with the End Gridlock slate, the Montgomery County cartel has assured us that building more housing units will lower prices. Yet, after building thousands and thousands of new units since then, lower rents and housing prices continue to elude Montgomery County homebuyers.
Condo prices have gotten so exorbitant in condo-construction-crazy Washington, D.C., Axios D.C. reported, that units there are now sitting long on the market because only a small segment of buyers can afford them. It will be interesting to see if the increasing value of condos will spur builders to convert any of their future planned developments from rental apartments to condos. We saw a lot of quick flipping back and forth in the construction years right after the "Great Recession," in places like downtown Bethesda. For example, just during its construction phase alone, the 7770 Norfolk development went from rental to condos and then back to rental apartments.
4 comments:
So interest rates have pushed rents up well over 20%. Enter the MC Council and their new Rent Control bill. On top of that, larger management companies are now charging owners who rent extra fees and additional security deposits. The perfect storm of Bidenomics until they redefine recession for the second time.
What areas within Bethesda have risen the most? Assume that 9% rise in a month was on an annual basis? Does this bode well for new construction or older construction in the most prime locations (e.g. The Chase)?
A 10 percent rise in one month would lead me to believe there is a change in mix (fancier places) in purchases reported. Is there information on how many units were reported sold, numbers of bedrooms, etc? That’s a large spike in a very short period.
Not surprised sales prices are up, inflation was up over 30% in the last few years.
Landlords, well aware of the upcoming rent control bill, will continue to jack rates as much as the market will bear, looking into a bleak future with the continuing moribund MoCo economy and the rent control ball and chain around their necks.
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