As discussed in many of our previous blogs, the “wait & see” approach has continued through the middle of summer.  It is amazing to watch the natural progressions of the real estate market auto correcting.  Condo Conversions have come to a screeching halt, new construction has been put on hold, and many condo projects have converted to either Apartments or Office/Retail.  Projects like Expo 62 and most recently Moda have been turned Apartments after being fully under way with their sales processes.  Moda came as a suprise – especially due to the fact that they were sold out less than a year ago.

All of this negative news is actually positive for the local Seattle & Eastside markets.  The New Construction Inventory is shrinking, which will eventually start evaporating the oversaturation of resale inventory in the city.  Just under a year ago it was nearly impossible to keep up with all of the construction.  Suprisingly, rising gas prices and worsening traffic reports will continue to play a role in ”Urban Appreciation”.

Other Projects that are on hold or moving to apartments include:  Seneca, Icon Tower, AVA, Insignia, Candella, 1 Hotel & Residences, as well as Vida & Lincoln Tower 2 in Bellevue.