According to the Puget Sound Business Journal, Seattle’s HomeStreet Bank will start to finance condo projects again.
Despite all the cranes and construction we see everywhere in Seattle, most of these are not new condo buildings. Since the market crash in 2008, no condo buildings have broken ground in Seattle other than Insignia Towers in Belltown being built by Canadian developer Bosa, who self-financed the project. However, with the current new construction condo inventory down to nearly nothing and the market heating up, developers are ready to build again but are held back by the lack of construction financing available to them. It appears that HomeStreet bank might just have the answer. According to HomeStreet’s Executive Vice President they are in talks to finance several deals in the Seattle area. According the article, one is reported to be in Ballard and another in a very urban location closer to downtown. We are excited to hear more about these and will give updates as we learn more.
To us, this indicates a strong change to the market. Construction starts are always an indicator as to the strength of the real estate market and this is a good sign in terms of showing the strength and health of the current condomarket. Even though we don’t know if these deals will be brokered and buildings built, it is nice to see money return to the construction loan market and condo building scene in Seattle. And we think buyers would love to see new product out there!
Source: Puget Sound Business Journal
By Marco Kronen with Seattle Condo Review: A guide to Seattle downtown condos.