This post was contributed by a community member. The views expressed here are the author’s own.
Condos offer a lower price alternative to home ownership and are quite popular in the DMV area, representing about 20% of all home sales, but can be as high as 50% in condo rich urban communities, such as Arlington, VA. Some of the key benefits of condo ownership include not having a yard to mow, onsite fitness center, gym, and pool, and a sense of community. Undoubtedly COVID-19 has impacted some of these benefits to condo ownership and, in the short-term, has change the desirability and attractiveness of condos.
Since the start of the summer, the inventory of homes have remained low, helping to keep home prices high, but not all homes are the same and we have observed a trend developing. Townhomes have the lowest inventory and are selling for above list price. Detached homes have low inventory and are selling for their list price. Condos have low inventory, however, the inventory is increasing and they are selling for less than list price. We believe the home buyers that would have been in the market for a larger condo are instead opting to purchase a similarly priced townhome, but not necessarily in the same area, resulting in less demand for condos and more demand for townhomes. So does the condo data support this? Let’s find out!
In this article, we analyzed the most popular condos in Gaithersburg and analyzed the data for 1-bedroom and 2-bedroom units. We compared the average sold price for condos in 2019 vs 2020, to observe if prices are rising or falling. We also compared the average annual number of sales for the past 3-years (2017-2019) against the current active homes for sale, to observe if the inventory is high or low for a specific condo community.
Comparison of Average Sold Price of 1-Bedroom Condos in Gaithersburg in 2019 vs 2020 YTD:
|Community||Sold Price 2019||Sold Price 2020||Annual Sales||Active||Assessment|
|FLOWER HILL||$137,550||$133,200||2||0||Price Dropping|
|NORMANDIE ON THE LAKE||$103,600||$118,375||3||0|
|THE COLONNADE AT KENTLANDS||$258,400||$269,021||8||0|
|THOMAS CHOICE GARDENS||$102,500||$1,500,000||3||0||Price Dropping|
|WASHINGTONIAN TOWER||$166,250||$154,500||5||1||Price Dropping|
Comparison of Average Sold Price of 2-Bedroom Condos in Gaithersburg in 2019 vs 2020 YTD:
|Community||Close Price 2019||Close Price 2020||Annual Sales||Active||Assessment|
|BOZZUTO AT KENTLANDS||$405,542||$414,975||5||1|
|CROWN FARM||$549,198||$507,963||3||3||Price Dropping|
|MILLS CHOICE||$126,667||$122,000||4||1||Price Dropping|
|NORMANDIE ON THE LAKE||$137,917||$137,000||5||0|
|PARK PLACE AT MONTG VILL||$200,225||$202,000||2||0|
|PARK SUMMIT||$187,250||$174,000||3||0||Price Dropping|
|THE COLONNADE AT KENTLANDS||$375,000||$379,480||5||1|
|THOMAS CHOICE GARDENS||$140,000||$135,500||4||0||Price Dropping|
|VISTAS WASHINGTONIAN WOO||$225,875||$232,714||7||0|
In October, a total of 46 condo properties sold in Gaithersburg for a median price of $258,000, with an average sold price to original list price of 98.1%. While condo sales continue to be relatively robust, overall inventory is rising and condo owners are selling for less than their original asking price, indicating that demand is softening. If you would like to keep track of your condo value, sign up for our custom monthly market update or reach out to me directly at 703-420-3499.
About Peggy Yee
Peggy Yee is a supervising broker at Frankly Realtors and is a local Top Producer. She has sold over $200 million in sales and was one of Northern Virginia Magazine’s Top Realtors since 2015. She has been quoted in the Around Reston Magazine, Washington Post, Money Magazine, Consumer Reports, Zillow, Trulia and Realtor.com. Peggy is 100% committed to making your move the best experience possible! Don’t just take our word…Click here to see what Peggy’s past clients have to say about the experience working with her from Buyer and Seller Video Testimonials and you’ll understand why she is one of the top real estate agents in Gaithersburg with dozens of 5 Star Zillow reviews. Click here for Zillow Reviews.
* Data Source: BrightMLS and SmartCharts. Information deemed reliable but not guaranteed.
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