WOW- what a weekend for our condo market!  I just received this recap from Realogics….

It was certainly an exciting weekend in our marketplace despite competition from sunny skies and a Seahawks game. Of course, the much-anticipated auctions by Schnitzer West for Gallery and Brix occurred.  And we kicked off some initial promotions for Condo Bulk Buy by offering advance previews for two participating projects - The Decatur and 1111 East Pike.  Last (but certainly not least), we hosted a unique open house and art walk at Fifteen Twenty-One Second Avenue, which followed a series of events at that property.

Here’s our take on all this activity:

SCHNTIZER WEST AUCTIONS
o       Impressive sell-through of the strategic unit release followed (no doubt) by additional sales at similar (or higher) pricing over the coming weeks

o       In aggregate, units sold at 30-32% below previous list prices (higher than most anticipated)

o       Accelerated Marketing did a great job facilitating the auction with successful bids averaging 150% of the minimum bid amount (one of their better results)

o       Tom Vetter (principal of Accelerated Marketing) was gracious to host several of our Realogics executives for this demonstration

o       Several hundred participants attended today and more than a thousand prospective buyers visited their two sites over the last month – so it would appear that demand is constant

o       Buyers still feel like “first responders” in this marketplace and want a deal to pull the trigger (they got one)

o       I’ll be interested to follow the unsuccessful bidders in the coming weeks – the supply has just become much more finite and the incentives for buyers are present today but not indefinite (no new inventory has entered the market for two years and won’t for a while)

CONDO BULK BUY
o       Thinks are heating up - our alternative to auctioning inventory is making sense to prospective buyers and we’re garnering very positive feedback so far

o       Our sellers acknowledge their likely auction results and are willing to provide that discount now in bulk (provided they are successful in selling the majority of their release)

o       Buyers love the notion of “The More We Sell, The More You Save” – prices start out great and get even better

o       With Nov. 30 quickly approaching (and the discontinuation of first-time homebuyer tax credits), buyers want to be confident in their home and their value – there’s a risk at auctions (ask those that missed out tonight – now what?)

o       We’ve had more than 100 prospective buyers register in the last week alone

THE DECATUR
o       About 60 buyer groups registered this weekend in response to impromptu ads and recent media attention

o       Agents say “multiple” buyers will make a reservation this week – just as soon as price ranges and agreements are firmed up by the seller

o       Buyers noted that average discount offered at recent Seattle-area auctions range from 25-30% off previous list prices – the bulk sales approach offers up to 35% off

o       Unit prices on average are still more than $100K less than Brix’s reset auction prices and price per foot basis is 20% lower using the bulk approach

o       Watch for website updates this week

1111 EAST PIKE
o       Several dozen “preview” tours this weekend – full marketing push coming soon with building completion pending

o       Upon touring, buyers to recognize the significance of the “original” Tom Kundig design concept versus more production-oriented development (it’s all about the design and details)

o       First release bulk pricing averages about $430 per sq. ft., which is less than a 10% premium to the average Brix auction price (not a bad investment considering the preferred Pike St. location and “collectable” design)

o       Watch for website updates this week

FIFTEEN TWENTY-ONE SECOND AVENUE
o       Several hundred folks came through the model homes and the Canlis Glass penthouse art installation over this past week and weekend

o       More than a dozen were identified as “A” or “B” prospects (signaling their intent to buy soon)

o       At least one qualified offer was presented this weekend (more sales anticipated this week)

o       Buyers are starting to feel more urgency where there is limited inventory for preferred price points or floor plans

o       The opportunity to “sleep on it” was provided to a number of prospective buyers, whereas a completely furnished, two bedroom guest suite is offered for overnight stays to experience the unique lifestyle at the property

There’s certainly some excitement in the air.  The next few weeks will likely be the harbinger of the fall condo sales season. I personally feel that many buyers will jump off the fence and pick a seat over the next 60 days.  Most projects that are in need of a reset (and not all are), will be reset.  And with the appropriate incentives in place, preferred selection, low interest rates and perishable tax credits may have more to do with “timing the market” than waiting around for lower prices still.

- Dean Jones, President / C.E.O.
Realogics

To add to the excitement- I visited the Escala sales center this weekend and they had 3 sales just in the last week!  Final walk-throughs will be scheduled for the end of October and closings should start in November…the building is looking beautiful!  More updates to come…

I wouldn’t have caught the insane Penthouse price drops over at the Cosmopolitan if it wasn’t for a good tip (thank you!)…check out the new pricing:

#3306 (1 bedroom/ 1.5 bathroom, 1100 SF)- WAS $699,950 in 2007, NOW offered at $499,950…$454.50 per SF

#3303 (2 bedroom/ 1.75 bathroom, 1400 SF)- WAS $1,249,950 in 2007, NOW offered at $899,950…$642.82 per SF

#3405 (2 bedroom/ 2.5 bathroom, 1858 SF)- NEW ON THE MARKET offered at $999,950…$538.18 per SF

There are a total of 17 condos on the market for sale in the building, but these price drops make the Penthouses by far the best deal in town!

In the first 12 hours of 2008, 63 residential, 7 condominiums and 5 vacant land listings have been listed on the NWMLS for just King County alone!

Among the 75 listings, three were above the $1M price mark and I did also happen to notice that there is a condo in Alki still on the market from January 1st 2007.

Happy New Year!

Just about this time last year, owners were starting to close on their condos at Live2200 and the controversy began as several condos were thrown back on the market for sale and lease (23 of which I leased personally!). Now that the year leases are starting to expire, owners are starting to reenter the marketplace and I of course have been spending more and more time at Live2200.

The building overall has tightened up a bit but I did notice that the wall of keyboxes looks about the same as it did this past spring. BUT only 18 condos are listing on the MLS?did someone leave a keybox behind?

Click here to view MLS listings- Arte/Azur, Aria

Another shocking discovery?the Live2200 move-in fee has jumped to $1000- the highest in the city! Obviously this affects both homeowners and renters but generally higher move-in/move-out fees are used to discourage movement within the building (aka short term leases).

I am now a Whole Foods junkie, love buying gifts and knickknacks at Clover House and can?t wait for the new retail additions to open- does anyone know what Opal is going to be?

With the market closed on Monday in observance of Veteran’s Day - the rest of the week will roar into action with a packed economic calendar, including a look at retail sales numbers, consumer and producer inflation, and the manufacturing sector too.

Remember that when Bond prices move higher, home loan rates improve - and you can see in the chart below that despite some ups and downs, Bond prices have overall been trending higher over the last few months, meaning home loan rates on conforming loans have improved in general. Any weak or negative economic news arriving this week should help money flow into the safe haven of Bonds, helping Bond pricing move higher and home loan rates move lower. And the chart also shows some nice technical “floors of support” that may help Bonds continue their overall trend of improvement.

But lingering concerns on the credit quality of Mortgage Bonds could hamper their road higher - so this week could be volatile, depending on the flavor of the headlines on this topic. And in this week’s planned economic releases, any scent of inflation in the reports will be very bad news for Bonds - which deliver a fixed return that is eroded by the effects of inflation - so that would spell bad news for home loan rates as well.

Patrick Dunn, Westwood Mortgage Inc. & MMG Weekly
patrick@westwoodmortgage.com / http://www.certifiedplanning.com/

In less than 5 days, my listing in the Cristalla (2bd+den, $4,300 per month) leased for asking price and for a year longer than the owners had anticipated- I didn?t even see it coming!

Over the past couple of weeks I have noticed that there are several current renters/former homeowners in the market for luxury rentals offering more than 1400 sq. feet and VIEWS. Most are looking to give ?urban living? a chance, are in the process of relocating or have recently sold their homes and are downsizing. They all have had flexible price ranges and have had a hard time finding the perfect place that fit their needs.

Currently there are only 10 listings in Belltown/Downtown over $3000 per month, 3 or 4 of which might work for someone looking for a modern and spacious rental (depending on how flexible they are with their budget!). Click here for Craigslist listings. Click here for NWMLS listings.

Here are a couple of my favorite listings under $360k?could be a great opportunity for an investment property or new home!

	Belltown Lofts 66 Bell Street $289k (Click here for more information) 5th floor, 1 bedroom/ 1 bath, 638 sq. feet with city and Space Needle views! This building is located in the heart of Belltown?walking distance to everything. The unit itself has very chic and modern finishes throughout, so what is the catch for $289k? NO PARKING- but would be ideal for a first-time buyer working, living and breathing SEATTLE.
Avenue One 2721 1st Ave $359k (Click here for more information) 9th floor, 1 bedroom/ 1 bath, 647 sq. feet with Space Needle views! This building is always a treat- situated in a fabulous Belltown location on 1st Ave between Clay and Cedar and is only 3 years old. The unit itself offers views, a private balcony, contemporary finishes and is ready to be moved into, no work necessary!
	Newmark Tower 1415 2nd Ave $349,950 (Click here for more information) 17th floor, 1 bedroom/ 1bath, 602 sq. feet with private deck overlooking the city! Located on the corner of 2nd Ave and Pike, the Newmark Tower is situated in a growing downtown location. This particular unit needs a little updating but with some TLC it would be a great investment opportunity for a rental or new home. It has great outdoor space and gorgeous city views from every room!