Well duh. Real estate supply and demand is ALWAYS trying to find equilibrium and even supply and demand amongst different price points is always hard to have perfectly balanced so it's no surprise that there is an over supply of high-end condos right now. A lot of condos have been recently built and sales in the $1m plus are slow both in condos and single-family homes right now. Supply is high and though money is available for loans many buyers aren't willing to buy yet. They are either waiting for their current house to sell, are nervous about jobs or just paralyzed because their private portfolio is down 30%+. Lowered pricing will get some off the fence but not for everyone. Consumer confidence has to return. Warren Buffet always says you should be doing the exact opposite of what everyone else is doing and right now that would be buying real estate, especially in great neighborhoods or great condo towers. One note, since there are no new projects scheduled to be completed until at least 2012 I predict a shortage of condos in the next 2 years. Click here to see the full Seattle Times story on high-end condo price reductions.
No comments:
Post a Comment