From the Washington Post:
Comstock Homebuilding Cos. of Reston yesterday reported that even though it sold 81 houses in the third quarter, 78 sales were canceled, a net of just three sales in three months and a striking reminder of the building industry's deepening troubles.
"Market conditions have continued to deteriorate throughout the year," Christopher Clemente, the company's chief executive, said in a statement.
. . .
In the Washington region, the cancellation rate for newly built homes shot up to 48 percent in July and August from 18 percent at the comparable time last year, according to the most recent data from Hanley Wood Market Intelligence, a real estate research firm. The most dramatic rise was among condominiums, where the cancellation rate jumped to nearly 124 percent from 13.5 percent a year earlier, which means there were more cancellations of previous sales than there were new sales.
Clemente singled out mortgage market disruptions, which were at their worst in August and September, as a main contributor to his company's third-quarter performance.
15 comments:
This should pretty well put a stake through the heart of the idea that DC is somehow different.
Leroy, you forget - Reston is "not in the beltway". All is OK.
CHCI's main problem with cancellations is the Eclipse, a high rise condo which is in the center of the beltway overlooking Ronald Regan Airport in Arlington. For DC metro they had -$22,936,000 in net new order revenue for the quarter.
http://phx.corporate-ir.net/phoenix.zhtml?c=181703&p=irol-newsArticle&ID=1062100&highlight=
http://www.eclipsecondo.com/
They've been driving piles at the water treatment plant 1 block from the Eclipse. Building a big tank too.
BOOM-cha BOOM-cha BOOM-cha
I'm a mile away and wakes me from my beauty sleep.
The tank is so big that it towers over the Metro bus repair facility.
"The most dramatic rise was among condominiums, where the cancellation rate jumped to nearly 124 percent from 13.5 percent a year earlier, which means there were more cancellations of previous sales than there were new sales."
This was actually the main thing I was referring to.
That is an amazing statistic. What would you be thinking right now if you were trying to sell a tower of condos?
"What would you be thinking right now if you were trying to sell a tower of condos?"
Who decided to put the condo's across from a bus repair facility, between 2 major commuter roads, 1 block from the water treatment plant, next to railroad tracks, and in sight of the airport?
...and price the 2/2's way over SFH's 1 mile away.
"Who decided to put the condo's across from a bus repair facility, between 2 major commuter roads, 1 block from the water treatment plant, next to railroad tracks, and in sight of the airport?
...and price the 2/2's way over SFH's 1 mile away."
Those numbers aren't talking about a specific condo building.
"In the Washington region...in July and August...The most dramatic rise was among condominiums, where the cancellation rate jumped to nearly 124 percent from 13.5 percent a year earlier, which means there were more cancellations of previous sales than there were new sales."
If these numbers are accurate, and over a two month period cancellations really out numbered sales in the "Washington region" then it suggests the condo market in this area is getting crushed.
The next year or so should be very interesting to see.
"CHCI's main problem with cancellations is the Eclipse, "
Sorry blog-boss, I was paying attention to crystalcityrenter.
"They've been driving piles at the water treatment plant 1 block from the Eclipse. Building a big tank too. "
So THAT'S the source of that horrible stench I smell when I drive down Glebe.
"horrible stench I smell when I drive down Glebe."
Hopefully you're just passing through the neighborhood, going to the mall or a job at Crystal City, and not going home to a half to three quarter million dollar, fragrant apartment at the Eclipse.
I'm guessing that the big new tank will reduce the emissions.
I certainly do not feel sorry for anyone who buys next to something stinky. A water treatment plant should not be stinky as its product is water. A sewage treatment plant might be stinky. I recall when I conducted manure/ soil research for Michigan State University, or "Moo U" as it was called. Neighbors to the research field complained about the smell, I replied, "How did you not see the animal barns when you bought your house? They are as big as a.. um .... BARN!"
Neighbors to the research field complained about the smell, I replied, "Smells like money to me."
It is a sewage treatment plant but I called it a water treatment plant. It preps the water for discharge into the Potomac.
It's not as bad as "Blue Plains" which is across the river.
Neighbors to the research field complained about the smell, I replied, "How did you not see the animal barns when you bought your house? They are as big as a.. um .... BARN!"
Reminds me of the time I spent in Utah during the mid '90s. Some California refugees built custom homes out "in the country." Then, in the springtime, when the local farmers fertilized their fields, they discovered that living next to a working farm wasn't so cool after all. Idiots - they probably thought they were petting zoos or something. Then they tried to take over the local county commission so they could regulate the farmers and their fertilizer. As you can imagine, that really endeared them to the locals.
NOW is a GREAT time NOT to BUY a house!
"Michigan State University, or "Moo U" as it was called. "
Was that what UoM'ers called ...
... the udder school?
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