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Had a question from a reader this week about how often condos are selling for full price or above the asking price. I pulled the last 30 days of sales in the downtown Seattle market and this is what I came up with.
In the $500,000 price point ($500,000 or less):
There were 23 sales of 1 bedroom units – of those 23 recorded sales 13 or %50 of them were sold at full price or above asking price.
Fairview on Lake Union just broke ground.
The high end 21-unit project will feature units that range in size from 2,500 to 5,000sf. Pricing will start at 1.3 million. See here to review their press release. Fairview has been in the works for over 3 years now (previously known as Enclave). The timing is opportunistic and much needed in a market with such little inventory. I’m thankful to see some new construction in our market. It’s been close to 4 years since we delivered a condo project and in my opinion, Eastlake is well deserving of an upscale waterfront community that will add value to a revived Lake Union.
See their website here: www.FairviewLakeUnion.com
For those of you looking to avoid apartments and would rather settle into a condo, there are 23 condo rentals listed in Downtown Seattle.
They range in price from $950 to $8,750 per month.
425 Vine St #606, Seattle 98121 – $950
2132 5th Ave #206, Seattle 98121 - $1,100
2801 1st Ave #1018, Seattle 98121 – $1,600
819 Virginia St #2005, Seattle 98101 – $1,995
2125 1st Ave #805, Seattle 98121 – $1,995
2414 1st Ave #505, Seattle 98121 – $2,200
819 Virginia St #1511, Seattle 98101 – $2,295
210 3rd Ave S #4D, Seattle 98104 – $2,450
820 Blanchard St #603, Seattle 98121 – $2,495
1000 1st Ave #2103, Seattle 98104 – $2,500
820 Blanchard St #1008, Seattle 98121 – $2,695
2720 3rd Ave #512, Seattle 98121 – $2,895
737 Olive Wy #3009, Seattle 98101 – $2,995
737 Olive Way #2308, Seattle 98101 – $3,100
2319 1st Ave #205, Seattle 98121 – $3,150
900 Lenora St #W104, Seattle 98121 – $3,500
2000 1st Ave #2104, Seattle 98121 – $4,250
2121 Terry Ave #1602, Seattle 98121 – $4,500
1920 4th Ave #1705, Seattle 98101 – $4,500
1521 2nd Ave #1004, Seattle 98101 – $5,500
1521 2nd Ave #2904, Seattle 98101 – $6,000
2033 2nd Ave #2111, Seattle 98121 – $8,750
More details on each unit – Click Here
The number of active condo listings in Downtown Seattle is now down to 80 – that is 80 listings total. Prices of available inventory vary from $129,900 to $8,000,000.
In the last 30 days, there were 45 sales in Downtown Seattle. That is a 50% increase from what sold between Feb 1st and March 1st.
Search the Downtown Condo Inventory
Condos located in buildings that are facing lawsuits are still selling – how you ask?
The contracts are ALL CASH.
As we’ve mentioned in the past, most major lenders will not touch projects facing lawsuits. With that said, nothing holds an investor back from paying all cash and bypassing a loan. In fact, in the last week alone, there have been 2 sales in buildings with current lawsuits and another 3-4 units that went pending. I’ve added a list of all pending condos planning to close despite the active lawsuits *
| PROJECT | ADDRESS | ORIGINAL PRICE | LISTING PRICE | SALE PRICE | PROFILE | TIMELINE | DOCUMENTS AVAILABLE | FINANCING AVAILABLE |
|---|---|---|---|---|---|---|---|---|
| The Parc | 81 Clay St #627 | $354,900 | $289,000 | $284,000 | Click Here - The Parc | Active Lawsuit | Upon Request | Cash Buyers |
| Gallery | 2911 2nd Ave | $295,000 | $265,000 | $262,000 | Click Here - The Gallery | Active Lawsuit | Upon Request | Cash Buyers |
| Mosler Lofts | 2720 3rd Ave #907 | $199,000 | $199,000 | PENDING | Click Here -Mosler Lofts | Active Lawsuit | Upon Request | Cash Buyers |
| The Parc | 2716 Western Ave #523 | $235,000 | $235,000 | PENDING | Click Here - The Parc | Active Lawsuit | Upon Request | Cash Buyers |
| Mosler Lofts | 2720 3rd Ave #1109 | $524,000 | $482,000 | PENDING | Click Here -Mosler Lofts | Active Lawsuit | Upon Request | Cash Buyers |
| Mosler Lofts | 2720 3rd Ave #606 | $229,000 | $229,000 | PENDING | Click Here -Mosler Lofts | Active Lawsuit | Upon Request | Cash Buyers |
| The Parc | 76 Cedar St #1201 | $245,000 | $245,000 | PENDING | Click Here - The Parc | Active Lawsuit | Upon Request | Cash Buyers |
| The Parc | 76 Cedar ST #1209 | $396,000 | $396,000 | PENDING | Click Here - The Parc | Active Lawsuit | Upon Request | Cash Buyers |
| The Parc | 2716 Western Ave #103 | $253,000 | $253,000 | PENDING | Click Here - The Parc | Active Lawsuit | Upon Request | Cash Buyers |
*Keep in mind that some of these Seattle condos may not close. If the brokers don’t do their homework, they will try to close without realizing they cannot be financed – they might not have known about the lawsuits prior to listing the units. This happens often with bank assigned real estate agents that don’t know our market.
Listen up Seattle condo owners – there are 19 units for sale priced at $400,000 or less – that’s right, (19).
Now consider this:
Out of the 19 available units, 8 of those condos are in buildings facing litigation. If you’ve read our post from a few weeks ago, most banks will not lend to borrowers on these projects. The only alternative is someone who is willing to pay “all cash”.
So what does this really mean for condo owners?
Think about it. If you do the math, there are 11 units for sale that can be purchased with traditional financing. Of those 11 units, the average time on the market is 75 days. You think buyers would like to see something new? YES.
If you want to take advantage of the market, I can help you move your unit and for top dollar.
Have questions? I have answers, contact me.
Search Downtown Seattle Condos
If your an investor looking for a little upside in your investment, one way you can play the Seattle market is by purchasing a condo during a time where the project is in litigation. I know some of you are shaking your heads, but hear me out.
If you do your homework with public information you can find material on the lawsuit and if your comfortable with risk you can make a move on condo that is tied up while the condo association, the developer and the sub-contractors duke it out. We posted a few weeks back on the projects currently in litigation. When this happens, sellers are at a loss. Buyers are unable to obtain financing – thus creating an opportunity to discount the asking price of unit for sale. Some sellers have to sell regardless of the suit. In fact, the lawsuits can last well over a year and often times reach the 2 year period. Why not offer a price that works for the seller and provides a generous discount for you as a buyer.
I should warn you, that this ins’t for everyone. You don’t know how a lawsuit is going to play out. Without being able to predict the outcome, you’d have to research the claims/complaints and find information that you believe may rule favorable towards the association. It is an option and why shouldn’t it be? If you comfortable with risk and there is enough upside, then maybe this type of purchase can work for you. If not, you always have the option of searching traditionally, considering distressed inventory or the option of buying a condo at the foreclosure auction.
We have take pride in our ability to service all types of clients. If you want to explore different opinions and don’t know where to start, ask us about our free consulting service – contact us for more details.
Disclaimer:
Jeff Reynolds and UrbanCondoSpaces.com are not providing legal advice. Buying real estate comes with risk. Buyer must verify details and carefully consider before making a purchase.
Are you a frustrated condo buyer or seller?
Well, it could have to do with the amount of quality Seattle condo projects currently involved in lawsuits or arbitration. The core of the issue is the Washington Condominium Act. It is very difficult to summarize, but in a nutshell there are provisions of the act that require certain warranties that a developer must comply with within 4 years of the “safe date”. To explain further, Seattle attorneys are contacting home owners associations prior to this 4 year period. They attend board meetings, target board members and rely on the trust of the condo associations. Once they are hired by the associations, they retain specialists that test for any and all construction defects with the building envelope. The legal process begins to take shape.
Before lawsuits take place, the associations legal team will set up a series of mediation appointments with the developers legal and insurance teams. The complaints are discussed, negotiated and then researched prior to the next mediation. If a developer and the condo association can’t come to terms on a settlement, then lawsuits tend to occur. As most of you know this is very problematic for homeowners and prospective buyers.
Major lending institutions stay away from condos with lawsuits. They simply will not lend. That leaves homeowners in a tough position – they can’t sell if they can’t open their units up to buyers who want to finance. Ultimately, they have to find a buyer that is “all cash” or they are left holding on to their condo until the litigation is lifted.
On the other side of the coin, buyers are already limited with the shortage of active inventory. So when they are ready, willing, and able to buy, they are often troubled by the lack of quality units to choose from. This is the story of today’s market. UrbanCondoSpaces.com decided to take this issue head on. As you’ll see below, we’ve developed a map that shows condos currently dealing with this issue. We recognize that there are projects that we may have missed. If so, feel free to comment or contact us directly with tips and updates. We often rely on our readers to be our eyes and ears on the ground.
SEATTLE CONDOS CURRENTLY IN LAWSUITS, ARBITRATION OR SETTLEMENT MEDIATION
View Seattle Condos – Litigation, Arbitration and More in a larger map
| PROJECT | ADDRESS | NEIGHBORHOOD | PROFILE | TIMELINE | DOCUMENTS AVAILABLE | FINANCING AVAILABLE |
|---|---|---|---|---|---|---|
| 5th & Madison | 909 5th Ave, Seattle | Retail District | Click Here - 5th and Madison | Believed to be in arbitration | Researching | Limited |
| The Parc | 76 Cedar and 81 Clay | Belltown | Click Here - The Parc | Active Lawsuit | Upon Request | Cash Buyers |
| Mosler Lofts | 2720 3rd Ave | Belltown | Click Here -Mosler Lofts | Active Lawsuit | Upon Request | Cash Buyers |
| Gallery | 2911 2nd Ave | Belltown | Click Here - The Gallery | Active Lawsuit | Researching | Cash Buyers |
| Veer Lofts | 401 9th Ave N | South Lake Union | Click Here - Veer Lofts | Active Lawsuit | Upon Request | Cash Buyers |
| Cosmopolitan | 819 Virginia St | Denny Triangle | Click Here - The Cosmopolitan | Mediation | N/A | May be limited |
| Trio | 3104 Western Ave | Belltown | Link Coming Soon | Active Lawsuit | Upon request | Cash Buyers |
| Eastlake Lofts | 125 E Lynn St | Eastlake | Click Here - Eastlake Lofts | Active Lawsuit | Researching | Cash Buyers |
We are constantly striving to provide our readers/clients with the best information on Seattle Condos that the city has offer. Although we always try to present our information accurately, we make mistakes. This is an attempt to provide current information on Seattle’s active lawsuits. We make no representations or warranties in regards to this information.
Are you thinking about selling your Downtown Seattle condo? Do it.
Let me explain why.
The market has been favorable to sellers. In the last 60 days there have been 72 sales. They range from a 1 bedroom unit in Belltown selling for $128,000 to a luxurious 2 bedroom in Madison Tower at $1,850,000.
More important than the sales numbers or types of units sold is the list price to sales price ratio. On average, of all the sales in the last 60 days, those condos sold for 97.95% of what they were asking. That is phenomenal. Meaning that if you list your 2 bedroom condo at $500,000, on average you would have received $489,750 – not bad huh? That number goes up to 99% if you take out the highest 15 percent of sales (million dollar condo sales). That same $500,000 condo would have sold for $495,000.
Adding to the list to sales ratio is the average days on market (DOM). The average DOM was just 79 days. For properties priced below $500,000 the average DOM was just 37 days! This is a positive trend for sellers and a negative for buyers. As inventory continues to shrink, buyers will have to step up, often in multiple offer situations. This will inevitably drive prices up.
In summary, don’t listen to your co-worker and their “expertise” on the Seattle real estate market. In this type of market, the follow statements are just plain false:
“The Seattle real estate market is ALWAYS seasonal”
“You’ll never sell your unit around the holidays”
“Its a buyers market in November, December”
“Wait until the spring”
“Prices are continuing to fall”
All in all, we couldn’t ask for a better market. Good luck selling and happy condo hunting!
I’m on travel at the moment, but thought I would provide a quick update on inventory. In the downtown Seattle market there are only 24 condos to choose from priced below $400,000. In the last 30 days, there were 13 sales in this price range. (Downtown Seattle | $400K or less)
In Downtown Bellevue they have 50% less inventory than Seattle in this category – only 12 units! That is a pretty remarkable number.
If you look at the last 30 days in Downtown Bellevue, 9 condos priced below $400,000 have sold. With only 12 units left in that price point, someone finally has to start thinking about developing again right? Who’s it going to be?
Search Downtown Seattle Condos
Search Downtown Bellevue Condos
For those of you looking to rent a condo in Downtown Seattle, I thought I would provide a quick update. At this moment there are just 20 units available for rent (on the MLS). Of those 20, 12 of them are priced below $3,000 and the remaining range from $3,200 to $9,500 per month.
See the link here or you can use our map below
Looking to do lunch this week in South Lake Union? Check out this interactive map that Vulcan just released. When you see a commitment like this from a neighborhood or community it is no surprise why restaurants, coffee shops and businesses are moving into the neighborhood. Bravo SLU. Bon apetite!
Just click the photo above or follow this link for more information.
Let’s put another feather in South Lake Union’s cap. In a recent press release, Paul Allen’s Vulcan Real Estate announced that four garages in the growing and uber-popular neighborhood will offer $2 parking on weeknights and weekends. I think the announcement is brilliant and if I were a business owner in the busteling neighborhood a thank you note would be in the mail for Mr. Allen.
South Lake Union seems to be hitting its stride. It is fixing its traffic issues, adding thousands of jobs, restaurants and becoming more pedestrian friendly. On the opposite end of the spectrum, just last year the city of Seattle raised their parking rates in key areas of downtown that need growth (Pioneer Square, Financial District, West-Edge). In the past, we clearly disagreed with Mayor Mcginn and the Seattle City Council on this issue.
Meanwhile, in the press release regarding Vulcan’s $2 dollar rate, the company said “For folks coming to South Lake Union for extended visits to shop, dine and stroll, Vulcan Real Estate is working to make their visits as easy and affordable as possible…”
The rate is available starting at 5 p.m. on weeknights and all day on Saturday and Sunday. The rate is good until the garages close for the night:
– 2201 Westlake building (across from Whole Foods): Monday – Saturday, 10 p.m.; Sunday, 8 p.m.
– Westlake Terry Garage, (320 Westlake Ave N) entrance: Sunday – Saturday, midnight
–Westlake Terry Garage, (321 Terry Ave. N. entrance): Monday – Friday 10 p.m.; Weekends, 7 p.m.
– Alley 24 (John Street and N. Yale Avenue): Monday – Saturday 10 p.m.; Sunday, 6 p.m.
Combined, the garages have 1,000 spaces available.
Keep in mind that visitors would pay between $8 and $12 to park for four hours under normal rates. I like what Vulcan is doing in South Lake Union. From what I hear from readers, owners and tenants, they like living in the neighborhood as well.
As first reported by UrbanCondoSpaces back on March 21st of this year, Bosa Development will start construction on a 41 story, twin tower condo project featuring 335 units. It is now being reported by the Daily Journal of Commerce that the construction will start in the next 2 weeks. This is incredible news for a depleted Seattle condo market. I’ll have plenty of information to add to this story. Stay tuned.
You can see our report from a few months ago, below. Just click on the image.
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