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Monday, October 09, 2006

Hey! Look Over Here!

Happy Monday.

Feel free to enjoy these two posts, complements of the Seattle PI.

Opportunity is Knocking at Your Next Front Door

"The unfortunate reality here is that good news seems to get buried in the newspapers and it's the negative headlines that get all the attention. What we're trying to do [with the ad] is motivate buyers with the facts. Mortgage interest rates have come down, there's an ample supply of inventory and homes are selling."
New condos: Which one's the tallest of all?
"Developer R.C. Hedreen Co. announced Wednesday that it was adding three floors, pending city approval, to Olive 8 -- a hotel-condo building under construction at Eighth Avenue and Olive Way. That would bring the tower to 39 stories, 455 feet above street level, and make it the tallest residential tower in Seattle when it opens in the summer of 2008.

The three new floors would mean the hotel-condominium project would have to meet city requirements to use environmentally sustainable construction and contribute toward affordable housing."
In sales we call this move "hey, look over here!" (distract the buyer so they won't think about the important questions, such as "how much will those condos be worth next year?")

1(Marlow Harris, Seattle Real Estate Professionals Blog, 10.08.2006)
2(Aubrey Cohen, Seattle P-I, 10.09.2006)

11 comments:

emailers2 said...

Here's a flash for you! The Dwelling Company (DC) at Highpoint is offering a $10,000.00 buyers bonus. I have been following the Highpoint development and DC was not offering a bonus when they first offered these units for sale.

The DC is playing a very interesting game at High Point. It is only pricing a few units at a time, even though they are constructing more units in the same plat. Are they trying to beat out the flippers or just make sure they get the entire price increase themselves? (I have noticed that several developers of small townhouse developments have not been offering their units for pre-sale. Why not?)

We went out to High Point several weeks ago and DC told us that they were not going to price any of the new release units for less then $399,000.00. Last week they released two new units for $359,000.00.

Also Polygon at High Point was offering a $2500-3000 buyers bonus for some of their condos. These High Point properties are priced a little higher and lower than the Seattle median.

Is the lower end of the market in Seattle getting soft or is it just that High Point is over priced?

Let’s not forget that the builders at High Point may have gotten a sweetheart deal on the land from The Seattle Housing Authority. The is speculation on my part if anyone knows please respond. I would like to know what is going on out there.

seattlenative said...

emailers2-

The DC paid top dollar for those lots. The only people that made nay money was the SHA which squiezed every penny out of the builders. It's kind of funny. The SHA's existence is to provide affordable housing yet all they did was force the builder to charge much higher prices.

emailers2 said...

I did not know SHA did that. It has certaintly made the units in High Point less affordable. You can find comparable properties in West Seattle for the same or less.

Who is competing with Whom in that market area.

Grivetti said...

The should have a contest..

New condos: Which one's the emptiest of all?

Matthew said...

5000 new units in 5 years, my guess is that in 5 years most of the condos going for 399,000 will be going for half that!

msrelo said...

That makes me want to puke... My paycheck comes from Realogy... Anybody know of some hot job openings! :)

emailers2 said...

Has any one else seen a softening in the pricing in the Seattle market?

Eleua said...

Here is an example of what I see coming this Spring...

This turd of a house in downtown Poulsbo has been on the market since late Spring/Early summer.

They had it on for $450K, and it is a disjointed, old, outdated, butt-ugly house on a busy street. I toured the house several months ago, and the agent told me that he already had multiple offers, but they were still holding the window open for anyone who is interested.

Apparently that was a truckload of fertilizer.

Anyway...the house is now vacant, and the yard is overgrown with weeds, is brown, and the property is showing serious neglect.

They have dropped the price of the house $15K, and think that will do the trick.

IT SOLD IN '04 for $270K!!! OK, WTF? These people have the temerity to ask for an extra $180K for 2 years of sitting in a glorified POS. Now, assuming they get their $435K, they don't have the brains or money to pay some kid to mow the lawn and water the yard? WTF?

This will be the norm in 18 months.

Properties will be abandoned, in disrepair, and the sales prices will be stuck.

The REO depts of the lenders will be hopping and looking for people with cash.

dalas said...

DC has these "near-manufacturer" homes in downtown Bellevue pricing at 850k or higher. I am sure if you compare the quality of the High Point condos, they're probably near the same quality.

Btw, I know nothing of High Point condos, but the DC project in Bellevue is really horrible looking. They basically shipped all the finished parts and "lego" them together, Quadrant home style...

wreckingbull said...
This comment has been removed by a blog administrator.
wreckingbull said...

eleua,

I am shocked and dismayed that you would use the word turd to describe a house like that. You bubbleheads are so angry and rude.

Did you not get the memo? This is clearly an example of retro chic.

Furthermore, the lawn is not overgrown, you heathen. It is obviously Northwest au naturale.

Please terminate this campaign of misinformation at once!