Summer Sales Heat Up for Downtown Seattle Condominiums
IN THIS ARTICLE:
• Established Values, Low Interest Rates and Developer Incentives Spur Demand
• Sales Volumes for Price Points Below $500,000 Trending 70% Higher Year-to-Date
• Active New Construction Presales Now More than 50% Sold Out
In a sustained trend, pending and closed sales continue to march upward for both resale and new construction properties in downtown Seattle, according to reports by market watchers. In July 2019, resale closings increased 35% year-over-year as pending sales spiked and active listings declined. For the first half in August 2019, pending resales have trended 75% higher than the same period in July, hinting at a possible inflection point in the market trajectory as outlined in a recent report by Realogics Sotheby’s International Realty (RSIR).
“Downtown Seattle is an established micro-climate that is benefiting from strong job growth and robust housing demand—both for rent and for sale,” said Dean Jones, President and CEO of RSIR. “Resales have steadily increased all year and new construction inventory also crossed a milestone—half of the available units on the market have now been presold.”
On August 6th, The Seattle Times featured a front-page story entitled “It’s a Good Time to Shop for a Condo,” as consumers rejoice over improved selection, low interest rates and developer incentives.
Jones notes the market is “trickling upward” led by a bounty of first-time homebuyers seizing the timely opportunity to own. Most significantly, price points below $500,000 are up 70% for resales during the period between January and July in 2019 compared with the prior year. Fewer than 30 resale listings priced below $500,000 are listed on the NWMLS and the median home prices of resale properties appears to be rising yet again.
“Rising construction costs are challenging developers to deliver at these entry level prices,” adds Jones. “For new projects to pencil in the future, they will have to be priced even higher than those currently being built today.”
KODA, for instance, is leading the market for attainable pricing with a collection of efficiently-scaled studios offered from the high $300,000’s and urban one-bedrooms priced from the low $400,000’s. Two bedroom floor plans are also available from thehigh $700,000’s. Site excavation for the planned 17-story condominium tower is nearly complete and the tower crane will be erected allowing for vertical construction with completion scheduled by late 2020. It’s the first high-rise condominium to be delivered in the Chinatown-International District, providing prospective buyers and opportunity to own within a block of the regional transportation hub of King Street Station.
“We are so fortunate to be well underway with both construction and presales,” said Michele Liang, the Sales Associate for KODA. “There is a tremendous level of excitement for the evolution of this district and Seattle’s new waterfront. KODA provides an opportunity to own a piece of Seattle’s vibrant future while enjoying the many attractions of the region’s first neighborhood.”
Liang agrees with The Seattle Times—it’s a great time to make a presale. With only 46 remaining homes offered for presale, the building has validated market values. Just a 5% earnest money deposit is required to lock in presale pricing and with approximately 18 months to completion, new homeowners have plenty of time to plan for their move. For more information, visit www.ownKODA.com.