The New Value of a 1 Bedroom Condo in Clarendon, Ballston & Courthouse??? 
Market News--Arlington VA Real Estate, Northern Virginia & DC
Market Values for Condos in Arlington VA
I've noticed in the last 2 weeks the emergence of a new market value for 1 bedroom condos in Arlington VA on the orange line in Clarendon, Ballston & Courthouse. What used to be in the low $400,000s may now be worth in the upper $300,000s. Here are some recent Arlington condo listings--some of them in my favorite buildings such as Continental, Odyssey and 1800 Wilson.
What is interesting is that 2 of them are in Odyssey--in my opinion the premier condo of Arlington VA on the orange line. Another is in Continental and 1800 Wilson and Clarendon 1021. These are cutting edge communities and for 4 listings to come out recently under $400,000 in these buildings could be a sign of what I'm expecting--a continued correction in the condo market. It is important to note that most of these were on lower floors, but even a unit on the 6th floor listed at $410,000 at Clarendon 1021. Those usually list at $439,000 so it would seem that the new deliveries of Hawthorne, 1800 Wilson and the continued marketing of Park at Courthouse, all of which were offering new units around $360-370,000 have made an impact on the surrounding market values. Park at Courhouse may be sold out of those lower priced units now and about 2 weeks ago Hawthorne was down to their last lower priced unit at $365,000 with a private entry directly to Pollard Street.
Condo Prices Shift on Orange Line in Arlington Virginia
All of this is conjecture of course as far as cause and effect are concerned but it's my .02 worth. And it's good to see some Sellers back in the land of reality. In fact I would say that perhaps that Odyssey unit was priced too low...I should know as I ratified a contract on it for my buyer within 2 days of it listing while I was out showing condos in Penn Quarter to someone else. It's great to have a smartphone for sending contracts (PDFs) to buyers, sellers and listings agents while in negotiations on a home even while working with other clients. I love technology. More on that another time. I think the article will be something like this: Pimpin' out the Smartphone--Tips on Increasing Your Phone's IQ.
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Date: Tuesday, May, 15th 2007 @ 09:24:25 PMViews: 5923
This blog entry currently has 16 comments posted.
Jay Seville
It's not so bad...for awhile I've been saying that Arlington is mostly corrected now with A LOT MORE transactions than a year ago w/ sellers having reduced their list prices 8-15% so buyers and sellers are on the same page.
But the condo market with these new deliveries at old 2004 prices are impacting prices of surrounding condos....
Rest of Northern VA is not as rosy as Arlington though.
Frank LL0SA
Can you redo that graphic and include the sq footage? Sometimes studios get listed as 1 BDR. Also 1st floor units are usually at a much lower price than higher floor units.
That unit 648 is a great price (at least until more prices come down)
Jay Seville
Frank, check this out. can't wait to use it! And try it out the demo on your phone on their homepage.
http://www.cellahouse.net/
Steve Wohler
May be getting a condo for my daughter in Ballston area. Any thoughts on buying vs. renting, and value comparison between 1 and 2 bedrooms?
Jay Seville
Steve,
I'm a fan of buying if you're going to hold onto it for 3 years or more. I would also recommend 2 BR with your daughter renting out the 2nd room for a hefty sum (for example $1200 on the orange line in areas such as Clarendon, Ballston, Courthouse). Having a 2nd party paying a large portion of one's mortgage is a great way to go.
Yonka
Your blog is so useful. Thank you!!
I currently live at 1021 N Garfield (just renting) and now am looking into buying a new 2BR/2BA around the Clarendon/Courthouse area. It seems that there are many 1BR transactions in the past half year but not so much 2BR ones (especially in 2007) and I am wondering if price is going down for 2BR as much as it has for 1BR. I already looked at sales record (from Arlington county site) at 1800 Wilson and Station Square. I’m about to look at other properties too, like Odyssey.
Another question: how as a buyer can find out the new construction is well-built? I am asking this since I witnessed several nasty issues that 1021 N Garfield St went though in the past two years (I\'ve lived here since it opened during summer 2005), including major water leakage from the ceiling a couple of times (some units had to be completely redone, thank god mine was ok…), water pressure issue, broken garage door, etc. Although all these issues were eventually addressed, I would never buy anything in this building (sorry 1021 owners…). Are these things normal? I’m very concerned as 1021 N Garfield is supposed to be a very good condo and is selling at high prices. Is there any specific thing I should be looking at?
Jay Seville
Yonka,
Per your ???s about quality of construction. I do not have an answer for you. If you get the answer please let me now so I can disseminate widely. Many buildings that are great had some issues including Clara Barton in Penn Quarter and Odyssey w/ some water issues as well. I don't know much about construction issues, but I think these issues are more common that one would have thought. Courthouse Hill condos went through a multi-million dollar repair or replacement of their sprinkler head systems that cost owners a lot with a special assessment so this "stuff" happens regularly which is not to downplay it.
I have a lot more info on 2BR units and values that I'm getting ready to write about right now. So call me if you want it fast or stay tuned.
703-624-3270.
This is an interesting buy in that 2/2 category with an extra half bath thrown in w/ 1305 sq. ft: http://matrix.mris.com/Matrix/Public/Email.aspx?ID=19860104440
And for some regular 2/2s here are some of the more interesting options, Yonka. Call me so we can take a look:
http://matrix.mris.com/Matrix/Public/Email.aspx?ID=19860268145
Click on the film reel icons for virtual tours/photos.
Yonka
Jay,
Thanks a lot for your quick response! So it seems these things happen more often than owners would want... After you pay half a million for a tiny condo, it must be frustrating...
In any case, I saw your new posting about the 2BR/2BA inventory. Maybe I'll wait for a couple of months to see if these sellers will realize that they need to bring down prices to actually sell?
Thanks a lot for the listing too!
Yonka
Hae Eun Min
Dear Jay,
I currently rent a single family home in Arlington Forest, which is close to the Ballston Metro, but definitely a healthy walk.
I recently took a look at a 3br/2ba condo on the third floor of The Chatham building on Arlington Blvd and George Mason. It was listed at 375K. It is a much older building than all this new construction you have been talking about, but I was wondering if you had any knowledge about the building. While I would love to purchase a 2br/2ba condo right on the Orange Line, I have to be more realistic about what I can afford. Are there big risks associated with buying an older condo in that part of Arlington in terms of being able to resell it later?
Thanks,
Hae 
Jay Seville
Sorry for such a late reply. The big risk with buying a 3/2 at Chatham is the huge condo fee. Can people get similar square footage with a much lower fee elsewhere for similar prices????
In my opinion the condo fee should be figured into tax deductions for homeowners since they are a monthly recurring RE expense like the mortgage and connected to the market value of a home.
If you're thinking about buying contact me and I'll sort through which communities would strike the right balance between home and investment (resale/marketability of the home downline).
jay
Jacqueline
Hi,
I own a 1/1 condo in Ballston. The selling price is not so good as everyone knows. I'm debating between selling it now with 40-50K loss (and claiming the losses for this year and some will be carried over to next year) or renting it out for another year or two and see if the prices are going a bit higher. Any advice? It's a difficult call to make!!!
Jay Seville
Jacqueline,
Good question. What would the difference be between rent collected and your mortgage/taxes/condo fee each month? I assume the difference could be some sort of business expense or tax deduction write off. Forgoing 40-50 seems so drastic. You might need to consult a financial planner/accountant on this who understands investment properties and how to maximize the write-offs $$$$ on the investment to make up for the losses you're experiencing. I'd recommend at least looking into that option.
Jacqueline
Hi,
Thanks so much for your prompt response. Ultimately, I'm not sure if I should try to sell it right now with huge losses or rent it out for a while. They say that it will take a long time for the price for 1/1 condo in Ballston to be somewhat reasonable. It may happen after the election next year. Right now, there are just too many condos in metro dc and not many are in contract. In terms of timing for selling condos, any advice? It would be much harder to get prospective buyers if I delay even for the current price, no?
Jay Seville
You may not realize it, but I'm a realtor. Here are 2 condos I have for sale right now: http://matrix.mris.com/Matrix/Public/Email.aspx?ID=22027307400
I'd recommend waiting until March 2008 for putting any homes on the market. Holidays tend to NOT bring homeowners the top $$$ for their property. You can call me at 703-624-3270 to discuss when you're ready. Until then email me at justnewlistings.com at gmail and I'll set you up to receive a monthly update by email of any condos selling in your building so you can track the prices on your own.
Shaun McLane
Just when we thought the market was recovering