Experts Forecast Dim Days Ahead for New Condominium Inventory, Rising Prices
As the city was fixated with the solar eclipse on August 21st, few seem to have noticed another shadow looming over downtown Seattle condominiums – experts say 2018 will be a total blackout for new supply.
“It’s a simple forecast when you digest rising demand and zero new inventory,” suggests Dean Jones, President and CEO of Realogics Sotheby’s International Realty (RSIR). “Prices will rise and selection will dwindle.”
The last time developers delivered zero new inventory was a stretch between 2011 and 2013, according to RSIR’s report. That created pent up demand for ownership, which began a steep rise in median home prices across the city of 70,000 residents. Eventually, 698 units were delivered at Insignia’s south and north towers between 2015 and 2016 followed closely by 167 units at LUMA – all these new homes have since sold out and resales are now occurring at values averaging 20-pecent higher compared to presales. Later this year, Gridiron Condominiums will deliver 107 new units, of which approximately two-thirds are already sold. No new projects will deliver in 2018 and for the first half of 2019, until NEXUS begins occupancy later that year. RSIR is monitoring several new condominium tower offerings, but none have begun offering presales as of yet, and occupancy isn’t expected until at least 2020 or later.
A graphic by Realogics, Inc. reveals the bleak future of in-city condominiums in 2018, as no new construction will hit the market until NEXUS begins occupancy mid-2019.