What's the deal with the explosion of condos?

I recently received an e-mail from a former buyer client of mine who now lives on Capitol Hill. He writes:

> Are y'all at all worried about the
> explosion of condos in the District?

The short answer is no. The long answer is "yeah, maybe, kinda."

Perhaps you've been reading in the Washington Post about how our strong housing market has generated great interest in condominium units in the District --- so much so that developers are planning on bringing a slew of new condominium projects on the market in the next few years. 47,000 new condos are reportedly in the works.

What does this mean for people who currently own condos in the District? No one knows for sure, but there is some speculation that a glut of units on the market could deflate what has up until now been an incredibly strong condo market. I think certain buildings and units will be particularly vulnerable in a market that favors the new and sexy. Units in dowdy-looking buildings, or in buildings with few or no amenities, or aren't in great shape, or haven't been udpated --- these units will harder to sell, and prices for these units could be depressed. (For what it's worth, I already see this happening in many areas.)

That said, it's gonna be a great time to buy a condo in DC, with builders competing with one another to offer some great perks (plasma screen tv's, high-speed internet, closing costs, etc.). If you're considering purchasing in the near future, you should consider what would happen if you had to sell the unit again in the near term. I think that whatever happens, owners who buy condo units and are prepared to hold onto them for a while COULD ... MIGHT ... POSSIBLY make a mint ... in the long term.