Lets take a good hard look at the condo inventory in Downtown Seattle right now. We have all seen the articles this week about historically low King County and Seattle area housing inventory – however, no one covers Downtown Seattle condos like we do. We need our own micro-analysis to see what to expect in the coming months.
What is fascinating to us is the idea of having zero new construction inventory to sell. We think its a real possibility. Insignia Tower is nearing 86% of their total inventory sold and Luma and Gridiron are the only other new construction projects selling near the Downtown core. Luma is currently providing hard hat tours and Gridiron is yet to break ground. So when Insignia Towers, Luma and Gridiron sell out their remaining inventory, we have the possibility of a market without new product. There could be some pre-sale inventory that is added in late 2017 but time will tell. There are a number of projects in the works that seem to be leaning condo but until those are official, the numbers are the numbers. Lets take a look.
Right now we have 86 units for sale (per MLS data) in the Downtown Seattle market (area 701). 27 of those are new construction. Leaving just 59 re-sale units available for sale. See our chart below to view the annual rate of absorption.
In a nutshell, we are selling units quickly and not adding enough to meet demand. If demand remains steady, it will be an interesting year for certain. Have questions? Contact us.
Here is a chart we created to show you the monthly supply of condos in Downtown Seattle. It was modeled for 2015.