Will condo wave swamp market?
This past Sunday the Seattle PI had an article on the condo market, Will condo wave swamp the market?
Half of the approximately 1,600 condos Gardner expected to hit the market in 2010 still are looking for financing. Scaling back projects actually would lower the risk of overbuilding and help prevent Seattle from becoming the next Miami, he said.
The decrease in potential competition is one reason why downtown’s high-end ESCALA building will increase prices 5 percent as of Dec. 1, said John Midby, a principal of developer LEXAS Cos. Midby cited a 40 percent increase in construction costs in the past 18 months, a relative lack of places to build in-city condos and Seattle’s strong economy.
I think the market is now fairly balanced. The days of specuvestors getting a free ride is over and there is enough inventory to give buyers selection but not enough to give them the bargaining power they’d like.