As of this weekend!!

OLIVE 8 CONDOS REINTRODUCED TO MARKET WITH ASKING PRICES REDUCED AN AVERAGE OF 18%
Developer “Reset” Approach Implemented to Help Spur Sales in a Dynamic Market

(SEATTLE, WA.) January 7, 2011 – Executives of Realogics Sotheby’s International Realty today released a sample price list for remaining inventory above the 27th floor at Olive 8 – a 229-unit condominium and hotel development in downtown Seattle. The new pricing strategy includes reductions across the board that vary from about 15% to more than 25% on some homes, according to Julie McAvoy, the Community Sales Director for Olive 8.

“Effectively, the price reductions is our seller making the first offer to homebuyers in this dynamic marketplace,” said McAvoy. “Selling today requires a conversation and we’re listening.”

The new price list comes out about a year after prior reductions that ranged from 10-15% and last fall an auction helped sellout targeted inventory below the 27th floor, according to McAvoy and NWMLS history. She estimates the total reductions in aggregate now range from 30-40% below presale pricing in 2007. “It a compelling opportunity for savvy homebuyers,” said McAvoy. “With prices correcting, timing the market may now have more to do with securing preferred selection and historically low interest rates versus anticipating further price cuts. I think we’re at a pivotal time in the center-city (Seattle) housing market and each community has a unique relationship within it.”

A preliminary look at median home prices (year-over-year) for all condominiums (new and resale) in downtown Seattle suggest a 13% correction from a peak in 2007 compared with 2010, according to NWMLS records. Meanwhile inventory appears to be shrinking, most notably due to a lack of new construction since the credit crunch stopped additional development in 2007. Pundits agree no new condo towers are expected to arrive to market for at least several years.

David Thyer, President of RC Hedreen Company and developer of Olive 8 says he monitors market values but
acknowledges the only price that matters is the one that a buyer wants to pay. “We’re not inclined to further
discount given recent sales comps in the building,” he said. “We know Olive 8 provides a great value today and we’re working our way up the building. Our three year construction loan extension provides us the time to sell into an improving marketplace over the next two years or so. Fortunately, we’ve saved our best inventory.”

McAvoy reports 10 new sales have been accepted so far in 2011 and active negotiations are taking place on several other homes. “I think buyers and sellers are finding better balance in supply and demand at Olive 8 and elsewhere,” she said. “It’s a signal that the market is stabilizing and an increase in sales means buyers are becoming more confident in home values.”

I toured the building yesterday with some clients and was amazed to hear that they are looking at 40+ closings this month! From the sound of things, the reduced pricing has attracted a lot of buyers…even several who are willing to pay all cash.

Securing financing has been a major issue in the past but now the new preferred lender, Met Life, is set to close on 5+ units in the next week and the building will be FHA approved in approximately three weeks.

We looked at 1 bedrooms (SW & NW “A” floorplan and E & W “B” floorplan) yesterday priced under $550k.  The units that they have on the 14th floor seem to be the best value at around $499-$513k with views of the Space Needle, Lake Union, Sound and City.  Out of all the floorplans, I am most partial to #1406…I think the 4th Ave corridor view is gorgeous (and is considered “protected” as the building to the south is secured on a 100 year lease).  Click here to visit the Escala website to view floorplans.

Something else I learned- they are not officially selling additional parking spots…although the developer may reconsider this as the commercial spaces lease.

If you are interested in purchasing, don’t wait!  Get down to the building and check it out…if you are planning on visiting during the week, don’t forget to make an appointment, otherwise, Saturday and Sunday are open for walk-ins.

Just in!

MARKET DISTRICT – Fifteen Twenty-One Second Avenue

-  William Justen hosted an agent seminar on Tuesday, March 23 and presented “The Value of View” (Click here for more details)
-  New video building tour online (Click here to view)
-  New interviews with William Justen (Click here to view)
-  New interviews with Tom Parsons (Click here to view)
-  In celebration of recent LEED “Silver” certification, all new home sales before April 30, 2010 will include a Smart ForTwo vehicle (Click here for more details)
-  Introduced a new 4,400-sq. ft., three bedroom plus den floor plan offered at $7.25 million (combines a C & J plan for half of the 34th floor) (Click here to view)
-  Open house this weekend (Noon – 4pm)
-  Homes start at $1.1 million
-  Now more than two-thirds sold and occupied 

FIRST HILL – The Decatur

-  Offering “Double the Tax Credits” up to $16,000 (select homes) for sales before April 30
-  Up to 35% off original list prices
-  Home start at $184,950 or just $859 per month (see agent for details)
-  FHA approved –just 3.5% down payment!
-  Phase II sales release happening now
-  New video building tour online (Click here to view)
-  Now more than two-thirds sold and occupied 

CAPITOL HILL – Eleven Eleven East Pike

-  Up to 25% off original list prices
-  FHA approved –just 3.5% down payment!
-  Home start at $244,950 or just $1,127 per month
-  Full sales release now available 
-  New video building tour online (Click here to view)
-  Now 50% sold – only 13 homes remain! 

BALLARD – Hjarta

-  Bulk Sales Event – March 27 & 28 (Noon – 5pm)
-  Up to 35% off original list prices
-  Home start at $274,950 or just $1,154 per month
-  FHA approved –just 3.5% down payment!
-  Phase one sales release  

GREENLAKE – Florera

-  Bulk Sales Event – March 27 & 28 (Noon – 5pm)
-  Up to 35% off original list prices
-  Home start at $244,950 or just $1,028 per month
-  FHA approved –just 3.5% down payment!
-  Phase one sales release

Finally…and patience is truly a virtue.  The tremors started back in October (when we were hoping to close the first week of January) and I have to say now, my clients have been through it all! 

The dust has settled and it seems the larger majority of the kinks have been worked out…just looking forward to a successful close and the epic outcome of all the hype the new pricing has created.  More details to follow!

Just an FYI- the individual wine cellars in the wine cave will be managed and leased by the HOA.  Cellar capacity ranges from 18-30 bottles and will lease anywhere from $225 to $300 per year- renewed annually.

Escala cutting condo prices by 50 percent
Puget Sound Business Journal (Seattle) – by Kirsten Grind

Downtown Seattle condominium tower Escala will lower prices by as much as 50 percent on unsold units, the luxury building’s new marketing firm said Tuesday.

Rennie Marketing Systems and the building’s listing agent, Bellevue-based Teambuilder, declined to release price cuts on each unit, but said savings will range from 20 percent to 50 percent.

A 1,878-square-foot penthouse once priced at more than $4 million will now sell for $2.3 million, said Erik Mehr, a sales manager at Teambuilder. The building’s top-priced unit — a $12 million penthouse — is now selling for just under $7 million.

A one-bedroom, 952-square-foot condo will start at $384,000, a two-bedroom, 1,607-square-foot condo will start at $699,000 and a three-bedroom, 2,442-square-foot condo will start at $1.6 million.

Click here to read more!

I just received this notice from Escala!! Sales Center opens on 3/27/10…more details to follow!

Dear Ashley,

The Escala Seattle Team
1920 Fourth Avenue
Seattle WA  98101