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Another Proposed Condo Tower Postponed

May 22, 2008 by  
Filed under 1 Hotel, Insignia Towers, Puget Sound Region

pause buttonAnother developer is being reported in the Seattle P.I. as putting off construction of another expected high-rise due to a market slowdown. It seems as though every week, sidelined buyers are limiting thier choices to what to choose from by not making any offers. Both the European Tower in Bellevue, and Insignia Towers development in Belltown have officially announced their reason for delay as a result of a market slowdown. 1 Hotel has announced a delay in construction so they can redesign the project to make it more appealing to lenders.

Again, this brings up an issue of rising rental rates and population boom.

An underlying message the media and many industry professionals are trying desparately to share is that if projects continue to be delayed, and our job market continues to bring more people to the northwest, a limited amount of real estate investments will become virtually unaffordable for picky buyers who think prices will go down any further.

ESCALA still plans to increase their prices by 3 to 7 percent on June 5th, and many Realtors are telling more and more of their sellers to be patient rather than accepting low-balled offers.

The “no more beating around the bush” message is; BUY, BUY, BUY!


3 Responses to “Another Proposed Condo Tower Postponed”
  1. Of course most of us in the real estate profession would like customers to buy and I help my clients who need to buy do so. On the other hand if people are worried about what prices are going to do, I give them my honest opinion, which is that now is NOT a good time to buy, buy, buy.

    It will be very interesting to see how quickly the condos currently under construction will actually be absorbed – and if the developers will be getting their prices.

    I’ve heard of a number of projects who had “pre-sales” to investors that have mysteriously fallen through.

  2. You’re crazy if you’re advice is based on investors that have fallen through. First of all, there are now laws that prevent investors from creating a false demand by buying up presales. Second, is that the population in the Northwest is still growing.

    Also, if the market was saying it’s not a good time to buy, then industry experts would be suggesting to sell. At the same time, it’s those who are paying $2,500/mo. + in rent that we’re all trying to pull over the fence.

    Your comment has no substance.

  3. EEK! says:

    Have you heard any updates? It looks under construction, but I haven’t heard anything from the developer.

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