The Washington Post has an article today about the glut of condos in the Washington Metro area. In the new condominium pipeline, there are 20,217 units being actively marketed. In the next three years, 18,867 are in the pipeline for marketing. In 2007, there were 1,487 sales of new units and 4,099 resales.
What's hurting new projects the most are contract cancellations -- when buyers back out of deals.
"A lot of times these projects were sold out. But people would put down deposits and wouldn't go through with the closing," said William Rich, vice president of Delta.
. . .
For sellers, matching developers' incentives, such as closing cost subsidies, can be difficult.
"The developers have a lot deeper pockets than we do," said Jae Lee, whose condo at the Artisan, a 160-unit building in the District's Penn Quarter that was also developed by JBG, recently went under contract after months on the market. "If I try to match them or try to outdo them, I will be losing money."