Seattle Condo Review: Reviews, News, and Seattle Condo Market Updates

Condo Purchase Timing

Interesting read in the NYT last week.  Below is one excerpt but the whole article is worth a good read:

Buyers who sign before construction is completed have always taken a risk that the building won’t look quite the way they imagined it. But these days, the biggest hazard of the preoccupancy purchase is that the building will lose its construction financing and then languish unfinished, wrapped in tarps — and wallpapered with your down payment — for an indefinite period of time.

If you are determined to buy in an unfinished building, research the construction lender. Many commercial banks are still on shaky footing. See if there has been any coverage in the media about the bank’s solvency. You can also try looking it up on the Web site of the Federal Deposit Insurance Corporation; go to the Enforcement Decisions and Orders page, look up your state, and see if any actions have been taken against that bank.

Full article here.

Ballard Condos Update

 
Danielle, the newest project in Ballard is slated for completion in 3-4 months.  31 homes will be offered in this boutique style condo.  Unlike the larger condos like Canal Station and Hjarta, amenities will be minimal, a 2,000 square foot rooftop deck.  Emphasis will be on the unit features which will include hardwood floors, gas cooking, and smart home wiring.  Some homes come with either large terraces, patios or decks.

24 1Br/1 Ba        590-760 sq.ft.          $269,000-$329,000

3  1 Br/1.5 Ba    1,080 sq.ft.              High $300,000's

7  2 Br/2 Ba       1,250-1,300 sq.ft.    Start at mid $400,000's

Golf Savings bank is financing this project and is the preferred lender as well.  

Escala Scaling Prices Soon

 
The developer for Escala has brought a new sherrif in the front office, Rennie Marketing System from Vancouver will manage the sales of project.  Team Builder JLS will be the listing agent working along side them.  So what is going to happen over the next few weeks?

1.) Current home buyers will be contacted and offered reduced prices.

2.) The developer is planning to scale back services at Club Cielo so that high homeowners' dues can be cut. 

3.) The sales center will probably be reopened sometime in March once everything is sorted out.

I'm most curious to know how much of a price reduction they're going to make on the remaining homes.  Read more here (Scroll down to middle of the page).

Related posts:

Escala Update Dec 2009
Escala Hard Hat Tour 
Escala Update
Escala Update February 2007
Escala priority presale event
Escala: Cristalla's biggest competition?  

Seattle Condo Neighborhoods

I took at look at some of the sold condo data over the last 3 years and put together a quick chart.  It's interesting to see that 2009 was softer than 2008 but the really big drop occurred from 2007 to 2008.  It's also interesting to see that, despite all the new projects in Belltown / Downtown there were more condos sold in Capitol Hill / Central / Madison Park than in Belltown / Downtown or Queen Anne/ Magnolia.

 
(Information from Northwest Multiple Listing Service and is deemed reliable but not guaranteed.)

Short Sales, Bank Owned and Foreclosure Condos

Over the last two years, we have seen an increase in short sale and bank owned condos on the market.  It feels like 1 out of 5 or 10 condos I come across is either a short sale situation or bank owned condo.  Even though the short sales purchase usually takes longer to close (if you're successful in getting the bank to approve the purchase price) and the time it takes for the bank to response to your offer can be agonizedly long, for some buyers, it's still worth a shot given that the listing price is usually a lot lower than the fair market value.  For those of you who are considering buying a short sale, bank owned or foreclosure condo, here is a list of good websites that you might want to check out:

1.) Before you buy a short sale

2.) How long should i wait for short sale approval?

3.) How to buy bank owned homes?

4.) How to buy foreclosure homes?

FHA Update

It seems like everyday we are hearing new updates from the financial industry.  FHA has just announced the following changes:

1.) Increase in the up-front mortgage insurance premium, paid by borrowers, from 1.75% to 2.25%.

2.) Allowable seller concessions will be reduced from 6% to 3%

3.) To qualify for the 3.5% down payment program, a borrower needs to have at least a minimum FICO score of 580.  Borrowers with lower than 580 score will have to put down 10%. 

The last change probably has the least impact on home buyers since currently represents a smaller segment of the market.  Read more here. 

Top Seattle Condo Market Developments and Trends

Before we focus too much on 2010, here's a quick look back at some of the most notable elements of the 2009 Seattle condo story.

1. Auctions 
2009 was the year for auctions. Queen Anne High School, Lumen, Brix and Gallery successfully sold most of their auctioned homes with closed price per square foot ranging from $334 to $439.  Brix and Gallery subsequently adjusted prices for their remaining homes and sales picked up swiftly.  Brix got approved by the FHA.  Meanwhile, Sunrise on the Lake, The Summit, and Avaview sold 19 of their 38 homes last December.

Top Seattle Condo Posts of 2009

In case you missed it the first time, here were some of the most read posts on SCR in 2009.

Brix Condos, Revisited

1521 Tour

Gallery and Brix Auctions

Enso Update

Queen Anne High School Condo Auction Results

Madison Tower / Hotel 1000 Review

Escala Hard Hat Tour

Lumen Auction Results

Seattle Condo Awards

Seattle Top Seattle Condo Investments

Escala Update

Prior to a couple of weeks ago, the last time I visited Escala was early 2009 so I was curious to see how the project has come along now that people are starting to move in and all the construction equipment is nowhere to be seen.  Here are some thoughts from my most recent visit earlier this month.  

The lobby is the grandest that I've ever seen in Seattle, perhaps even including the residential sections of the hotel/condo combos.  It competes easily with some of the five star hotels like Four Seasons.  The long stairway leading up the Club Cielo was accented with gorgeous Koa wood.  The owner's lounge was beautifully designed and filled with handmade furniture, carpets, and curtains.  This fine accoutrement was put together by the oh so fancy folks at Masins in case you want to deck your halls with the same.  

I toured the spa, exercise room, cozy wine cave, lounge, and restaurants.  Say what you will about Escala's prices (which I agree are overdue for reconciliation with the current market conditions), but the totality and quality of the amenities are truly impressive (even to someone who tours condos daily).  Unfortunately, I wasn't allowed to take any pictures but the building will be available for public tours during the months of February-March (Luxe Life Tour) so you can see for yourself that this ain't your typical Seattle condo.  

November Seattle Condo Market Numbers

November Seattle Condo numbers are in and overall, they look great.  

• Pending sales were up almost 40% versus the same period last year.  
• Closed sales soared and were 60% higher than November 2008.  
• For those buyers who are wondering if this means they have to pay a lot more, you'll be happy to know that prices are 10% lower than a year ago so there's good news for everyone in these numbers.

It's worth noting that the two neighborhoods that are leading this condo recovery are Queen Anne/Magnolia and Capitol Hill.  Queen Anne/Magnolia condo sales were more than double the previous year's November and prices were up 10%.  Capitol Hill condo sales were up almost 80% over November 2008 (though prices were down).

Belltown, while it is lagging in this recovery with "only" 18% more closed sales than the previous year had 10% fewer pending sales and median prices 24% lower than November 2008.  You might assume this is due to the large supply of condos in Belltown/Downtown, but Capitol Hill has just as many condos on the market yet had 50% more sales than Belltown/Downtown did.