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.