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Condo of the week…The Casey!

Welcome to the condo of the week. This week we feature one of the best in the Pearl!

Brad Golik is a condominium specialist with Total Property Resources and LuxuryCondosofPortland.com You can reach Brad at 503-896-8856 or at pdxluxcondos@gmail.com

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Win…Dinner on us! Follow me on Instagram…or my blog!

Follow us on either Instagram ( #pearlcondos ) or on our condo blog ( TheCondoPulse.com ) and get your chance to win a $100 gift card to Brix Tavern in the Pearl District! Winner will be drawn the end of April…don’t miss out on a chance to dine at one of the Pearl Districts “Favorite” places to eat!

 

Redfin…A sinking ship?

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How long can investors continue to be patient with money losing Redfin? That is a hard question to answer. But one thing is clear, the recent announcement that Redfin is cutting its commissions is truly a sign of the struggles that this company is having. The reality is that Redfin was losing money in its old model, now they think they can turn the ship by reducing its commissions more? This will affect their bottom line even more. Last year Redfin lost money, $15,000,000 on revenue of $370,000,000. They have lost money every year since inception! If the Redfin model was working, and their customers were happy with the service, they would not reduce their fees, would they? To me it is sending out a loud and clear message…this is our last ditch effort to survive!

I have written about Redfin in the past and maybe I am giving them more print time then they deserve. Redfin still has a market share of less than 1% (.71% to be exact) I believe that one of the reasons that the Redfin model does not work is the quality of their agents. It is funny to me how they tout how they can save their client’s money on commissions but they never mention the values lost because of the agents lack of experience in negotiating. Most Redfin agents are not what I would call solid and knowledgeable agents. In fact, it is very much the opposite.

Redfins newest marketing campaign “1% listing Fee” is deceptive just like much of their previous marketing. You will NOT be able to sell your house for 1%! Redfin still needs to pay the buyer’s agent 2.5%. So a more accurate and honest ad campaign would be a *3.5% Listing Fee” but that does not look as great to potential sellers as the 1% does.

Most savvy home sellers would prefer to pay a slightly higher fee for a quality agent that will spend more money to market their home then what Redfin will spend. They will also pay more for an agent that has EXPERIENCE! Experience in how to market the home, experience in negotiating and experience in getting things closed smoothly.

In the end, more often than not, it gets back to the old saying “You get what you pay for”. I know personally, If I were going to sell my house, I know MANY agents that I would pay more to sell my home than have Redfin do it because a lower commission.

Remember, it is all about your net proceeds!

Here is a little blurb from a previous post!

 

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…and another!

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Condo of the week…The Elizabeth!

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Check out The Elizabeth here: Elizabeth condos for sale

Have an interest in one of Portland’s stunning penthouse units? To see the new penthouse listing at The Elizabeth, priced at $3,650,000, call Brad today to set up a private viewing of this unique space.

Brad Golik is a condo specialist with LuxuryCondosofPortland.com and Total Property Resources. He can be reached at 503-896-8856 or at pdxluxcondos@gmail.com

Economic News

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Both PPI and CPI came in hotter than market expectations this week, posting up .4% and .5% on the headline prints, respectively. Looking at an annualized basis, PPI (price at the producer level) is up 2.7% on headline, and up 2.2% at the core. CPI (prices at the consumer level) is up 2.1% on headline, and up 1.8% at the core. Overall, some stronger results on inflation, keeping expectations for more acceleration throughout the rest of the year steady on pace. Although the markets still need to see more data ahead for further confirmation, levels in the sectors remain steady in place. Maybe more importantly, they are right in line with the Fed’s 2% inflation mandate, thus leaving them right on track for another rate hike at the March meeting.

Retail Sales for January came in softer than market consensus, posting a .3% loss. If we strip out autos and energy (core), we see a .2% decline. Important to also note that there was a revision to the initial level for December, taking a previously reported +.4% gain down to unchanged from the previous month. The release for January will certainly have its affect, most likely pulling back GDP in Q4 2017 to a lower level.

Housing Starts surged in January, posting up 9.7% to a 1.326mln unit rate. The release is higher from an upwardly revised 1.209mln unit rate back in December. January starts by region show increases of +45.5% in the Northeast, +10.7% in the West, and +9.3% in the South. The only decline came from the Midwest, falling 10.2%. Looking at Building Permits, we also saw a strong level for January, up 7.4% to a 1.396mln unit rate. Permits continue to suggest that the starts rate will continue to drift higher in the coming months.

So, after what has been another wild ride this week, we think it’s safe to say that we are all looking forward to the long 3-day weekend as the markets are closed on Monday! While we received a little bit of relief in Friday’s session that was favorable for the bond market, we are not out of the woods just yet. To really get bond market technicians “comfortable” again that a high yield has been put in place, the 10yr would need to see a close back around ~2.68% or lower, which we know, sounds like a lifetime away from current levels. That close would fundamentally shift the trend back in favor of the Bulls over the short- to medium-term outlook, and would be a very nice move lower in rates. From a technical perspective, we are setting the short-term trading range for the 10yr at ~2.80-2.94%, and those are the extremes you all should be watching. Rally one day, sell-off the next. It’s the pattern that we still need to be prepared for with the amount of volatility that remains in this marketplace. For now, the bounce back to some better rates/pricing to end the week is definitely one to “put a ring on,” taking full advantage of what’s in front of you.

As we look ahead to next week, the calendar is much lighter with the only data highlights being those of the FOMC Minutes and Existing Home Sales, both releasing on Wednesday. We will also have more Treasury supply in the form of 2, 5, and 7yr note auctions starting on Tuesday.

On a different note, we are starting to see more condos being listed on the market. If you are a buyer that has been patiently watching the market, give me a call to go tour some great condos!

 

Brad Golik is a condominium specialist with Total Property Resources, LLC and LuxuryCondosofPortland.com . You can reach him at 503-896-8856 or at pdxluxcondos@gmail.com

 

 

Luxury…at a value!

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Yesterday I listed a condo at KOIN Towers Fountain Plaza. With the “New and Shiny” buildings we have recently seen, like The Cosmopolitan, it’s nice to be able to go back in time a bit and revisit buildings like KOIN Tower. At the end of last year I sold a unit at KOIN/Fountain Plaza on the 27th floor for $1,750,000. It was a large unit with spectacular views. My new listing, just one floor below, and again, it provides some of the best views in the city! This northwest corner unit offers sensational sunset views to the west, amazing Mt. St. Helens and Mt Adams views to the north and Willamette River views to the northwest. This 1950 square foot unit has wonderful open spaces…and those amazing views! The best part of all, at $929,000, you are getting this for under $500 a square foot! Now remember, 26th floor views at The Cosmopolitan went for over $1,100 a square foot! OK, now the KOIN Tower is NOT The Cosmopolitan, but it represents luxury at a good value!

I believe we are at the beginning of a major transition in the KOIN building. Many of the original owners are gone and a newer, more thrifty demographic is buying in. There are not many condo buildings being built right now (The Vista) and I can see moving forward, many buyers recognizing the potential and value in a building like KOIN Tower/Fountain Plaza.

While current owners at the KOIN have not really participated in the run up of prices the last 10 years, buyers today will find a high quality building with unmatched views and will benefit tremendously moving forward. The area around KOIN Tower is also improving with several hotels with new restaurants, and a high- end grocery store. I cannot really think of a better time to buy at KOIN/Fountain Plaza than right now. To set up a time to see unit #2604, give me a call and be ready to be wowed by some awesome views! If you would like to tour this fantastic unit, give me a call today!

Video at:     Aerial KOIN Tower

Brad Golik is a condo specialist at LuxuryCondosofPortland.com and Total Property Resources, LLC. You can contact Brad at 503-896-8856 or at pdxluxcondos@gmail.com

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Lasting designs!

We have not seen many new penthouses come onto the market lately in the Pearl District but we should see a nice one come on by the end of this week and it is in one of my favorite buildings, The Elizabeth. This 15th floor Elizabeth penthouse will be priced at $3,650,000 (so I have heard) and offers 3,443 square feet of living space. If you are in the market for a beautiful penthouse in the heart of the Pearl, give me a call and be one of the first to see this unit!

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I mentioned that The Elizabeth is one of my favorites and the reason behind that is that it is a building with a ton of details and character! John Carroll, the developer, does some of the best designs in the city and is a developer that actually spends the money for the extra touches that set his buildings apart from the others. Recent development in the Pearl, including Hoyt Properties Vista, seem very vanilla in comparison with not much thought about the architectural aesthetics involved. Even now, as Carroll introduces his newest project, The Dianne, touches of quality design can be seen, even on this building that has been built to house those wanting to rent instead of buying.

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Last night as I drove by the Dianne, I noticed that even the lighting on the building gave it a dramatic look that we have not seen in the last several developments in the Pearl. Like buildings before, such as The Gregory and The Elizabeth, you see touches of detail that often get eliminated by most developers that try to squeeze every penny from the development. On the Elizabeth, you notice many details when you walk around the building starting with its trademark entry doors. Then you notice the tremendous amount of the wrought iron designs all around the building that give the Elizabeth its character. These were a tremendous extra cost to the developer that he could have avoided and increased his profits. Instead, this developer choose to make a lasting impact on a great neighborhood that also has much character. For that, I say thank you to developers like John Carroll!

 

Brad Golik is a condominium specialist with Total Property Resources and LuxuryCondosofPortland.com. You can reach him at 503-896-8856 or at pdxluxcondos@gmail.com

1st video at new company!

As many of you know by now, Pearl District Properties has shut it’s doors. I am still in the Pearl District and now at Total Property Resources!

 

Brad Golik is a condominium specialist working in Portland’s Pearl District, Downtown and South Waterfront.

New Streetcar Loft listing

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If outdoor living is important to you, here is a condo that is a must see! This Pearl District loft has 2 decks, the first on the main level, while not large, it does offer enough space for the BBQ and it’s close to the kitchen. The second deck offers enough space for both a sitting area and dining area and has views of the Freemont Bridge as well as the city lights to the South. Kick back and enjoy your outdoor time with a glass of wine and a comfy fire! To see this beautiful, 2 level unit at Streetcar Lofts, call Brad Golik at 503-896-8856

 

How were the numbers for condominiums in 2017? Stay tuned as we will be posting year end numbers on Portland’s condo, loft and townhome markets!

Brad Golik is a condo specialist and can be found at his new company Total Property Resources. You can reach him at 503-896-8856 or at pdxluxcondos@gmail.com Visit his awesome website at http://www.LuxuryCondosofPortland.com .

Vista Condominiums

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I have recently received a few emails asking why I have not written anything about the new Vista North Pearl. The answer, I guess, is that nothing seems to be too exciting about the project. And, not that it matters, but I have not had to deal with nasty emails from the sales manager at Hoyt Properties, who did not like my opinions on the Cosmopolitan!

So, what are the differences in the two projects? Well let’s start with the Cosmopolitan.   Contrary to what the sales manager said to me “I thought you hated this building!”, I NEVER said I did not like the project. What I DID say is that I did not like the pricing. (Great for the developer…not so great for the buyers). As it turned out, because of the low inventory levels at the time, they were able to capture those high prices. Again, the timing in the market was “perfect” for the developers. How about this time around with the Vista? Well, the market has changed and Hoyt will not have such an easy time selling units at excessive prices. As of the middle of last month, Vista had 95 units available (out of 153) or 38% of the units sold. Keep in mind, the Cosmopolitan was being marketed as the nicest condo building in town. Vista, from what everything I have heard, will be a notch below that of the Cosmopolitan in terms of finishes and the building as a whole.

Let’s start with the most popular corner, the SE corner, which was the first to sell out in the Cosmo. For comparison sake I will use units on the 14th floor. The Cosmo pricing for the SE corner on the 14th floor was $649 a square foot. The pricing for the Vista is 780. Now, a look at the NE corner 15th Floor (1517) in the Cosmopolitan was sold at $620 a square foot. The 15th floor unit at Vista (1506) is being offered at $750 a square foot. While the market eventually did catch up to the excessive prices at the Cosmopolitan, I don’t believe that the Vista prices should be selling at a premium like the Cosmopolitan. Units on the west side are pretty equally priced to that of the Cosmo.

Finally, let’s look at the penthouse units. At the Cosmopolitan, the range was from $950 a square foot to $1200 for the top floor 28th floor penthouses. For Vista, the range is $1052 to $1247. Let me repeat this one fact, the Cosmopolitan penthouses were being marketed as the best in the city in Portland’s most luxurious building! In addition, the top floor at the Vista it is only 21 stories. What is interesting here, if my memory serves me right, is that the units at the Cosmopolitan (floors 20 –28) were given a minimum premium of $88,000 per floor! At the time of this writing, I don’t believe that one of the six penthouse units at the Vista is pending. I cannot say that I am surprised. I would never pay anything close to what the penthouse units sold for at The Cosmopolitan. The Cosmopolitan is a superior, more elegant building (pitched as the nicest in the city) and there is no way prices at the Vista should compare! Again, this is just my opinion… or maybe not just my opinion. Ask any of the residents at the Cosmopolitan above the 21st floor and see what they say?

I am sure I will continue to get the cold shoulder from the developers’ sales manager…but am I wrong? I don’t believe so. Let me be clear. This is not personal but simply my professional opinion. As someone who understands condo pricing, I write about what I believe to be true and it might not always match the opinions of others, and that is OK!

There are things I like about the Vista. If you read my blog about the Cosmopolitan, one of the negatives noted was that many of the units had a very high ratio of hall space to usable space (many units were 12-14%) This is not the case with the Vista. Almost all the units are in the 4-8% range with the exception of the D4 Plan, the 08 stack) as it came in about 13%. In this case, you have a unit that is 1435 square feet and the unit has about 194 square feet of hallway space.

The Vista floor plans also provide MUCH more space to walk around the end of your bed in the master bedroom, a problem in many of the units at The Cosmopolitan. Another highlight of the Vista is its large deck spaces.

All in, I believe the Vista will be a nice building. As for the prices? The market will, in the end, determine the final prices. As of now, the lower units seem a little high and the penthouse units, I believe, are way too high.

If you are looking to buy at the Vista or would also like to look at other buildings, I am a condominium specialist and would be happy to show you available units. If you are thinking about selling in the near future, I encourage you to go to http://www.LuxuryCondosofPortland.com/marketing and learn a little about our approach to selling your condo!

Brad Golik is a condominium specialist with LuxuryCondosofPortland.com and Pearl District Properties. He can be reached at 503-896-8856 or at pdxluxcondos@gmail.com.

See aerial Drone footage of the Vista location within the Pearl District at http://www.VistaPortland.com