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Friday, May 29, 2009

Boom Selling for a Song

Posted by Dominic Holden on Fri, May 29, 2009 at 11:02 AM

Condos:

Nineteen unsold condos in the Lumen complex at Fifth Avenue and Mercer Street will be offered at an auction July 11, with minimum selling prices nearly 50 percent below the prices set when the 93 condo units were first offered for sale in 2006.

Of course, many of these condos will close sales above the minimum bid, but they'll still sell far below listed rates. Several developers recently have turned to auction companies to unload their stagnant stock, such as this one and this one.

Via the DJC.

Comments (9) RSS

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Source for this bit of news about Lumen?

Posted by Hernandez

on May 29, 2009 at 11:03 AM

Unfortunately, even at half-off many of these units are still going to be out of the price range for most people making around the median income - assuming they could even get financing at this point, which doesn't seem to be exactly a shoo-in.

Meanwhile, brand-new 2BR/1B condos are selling in central Phoenix for $175,000. Yeah, I know, it's Phoenix, but still.

Posted by COMTE

on May 29, 2009 at 11:06 AM

Fuck condo builders and their overpriced crap.

Posted by Greg on May 29, 2009 at 11:37 AM

So it looks like they'll get around 80% of listing if the linked auction is any guide. That sounds about right since we are off about 20% from the absolute peak.

Posted by giffy on May 29, 2009 at 11:44 AM

I'm with 2. Fifty percent off an overpriced, unaffordable condo is still overpriced and unaffordable (at least to me). Think about it - if the condo was going for $650,000 and is marked down to $325,000 (big if) - that's still more than a quarter of a million dollars! If you could scrape up 20% down ($65K) at 4.25% 30 yr fixed, you're mortgage payment alone would be $1300 a month. Now add in condo maintenance fees which can be as much as $300-$600 month.

That's do-able for two people, I suppose, but I'm out of the game. My point is: half-off - if indeed you get that - ain't always a bargain - like the $1000 Jimmy Choo's marked down to $600. They're still $600 shoes.

Posted by Bauhaus I on May 29, 2009 at 12:08 PM

Oh...and by the way - take a look at the graph of home prices as percentage of income for the last 100 years. Kind of runs along on an even keel until the mid-90s. Since about 1995 or so it looks like an exponential graph.

I have perpetual renter written all over me, I'm afraid, unless something really, really bad happens to the housing market - and I don't wish that on anybody. Still, I can't buy where I want to live until prices fall way below what they are now.

Posted by Bauhaus I on May 29, 2009 at 12:15 PM

Still overpriced.

My townhouse literally more than doubled in value from 1999 to 2008, so having condos at half price - and mine was too expensive for most people (sold my prior place), means that these are STILL too expensive for the people who should be living in this city.

Wake me when they sell for 20 cents on the dollar.

Posted by Will in Seattle