Portland condominium sales were down for the month of November. For the month of November, in our designated area of coverage from The Pearl District, Downtown to South Waterfront and in the price range of $200,000 and higher, 35 sales closed. Pending sales were also down this month which is not unusual for this time of year. What is unusual is the high number of showings that active condominiums are getting. Part of this could be due to the low inventory levels we are seeing.
Leading the way in sales once again for the month of November is Atwater Place in South Waterfront and Encore in The Pearl District. Atwater Place and Encore each had 3 sales for the month. For the first time in a while, there were no condos that sold in $1,000,000 and higher price range. This will change next month as there are several $1,000,000 condos that are in a Pending status. 77% of the condominiums sold this month were under the $500,000 range. This will change dramatically next month as we see many more condominiums and lofts above that range in a pending status, including 6 at Atwater Place that Priced from $515,000 to $1,150,000.
Remember, if you are in the market to buy a Portland condominium, work with a condominium specialist! Why risk what may be one of your largest purchases with an agent that does not fully understand this market? If you are thinking about selling your Portland condominium, why not select an agent that has marketing that is directed towards buyers everyday?
In our next blog about Portland condominiums we will be discussing Portland penthouses!
Please visit us at www.LuxuryCondosofPortland.com
Condo and loft sales for the Portland area from The Pearl District down to South Waterfront decreased slightly over last month with 41 sales in the +$200,000 market. In July we were expecting more closed sales as there were over 90 that were in a pending status last month. Delays in short sale and bank owned closings are most likely the reason we did not see more. In the upper end market, last month there were no sales in the $1,000,000+ market, this month we had 4!
Leading the way in condo sales for the month of July was Encore with 6 sales priced from $305,000 to $1,234,500. August should be another good month for Encore Condominiums as they currently have 8 units in a Pending status. Following Encore in number of sales for the month is Atwater Place in South Waterfront with 3 sales and Marshall Wells Lofts also with 3 sales in the month of July.
The sales of $1,000,000+ condos this month took place at The Casey, The Metropolitan, Encore and the townhomes on Riverscape near Pacifica Tower. 21% of sales this month were in the $750,000 and up market
If you are looking to buy a condo or loft in the near future we suggest using a condo specialist!
If you have plans on selling your Portland condo or loft or know someone who is, we feel our condo and loft marketing program is second to none and we would like to sit down with you and show you our program. After all, condo buyers are smarter than ever and you can no longer afford to have an agent who will just put your condo in the MLS and wait!
Many condo sellers will want to push the pricing on their condo or loft when they go to sell it… many times even when their Realtor advises against it. What often happens is that the seller will usually end up chasing the market down! A case in point, a beautiful Jeffrey Lamb http://www.jlambstudio.com/ designed condo, one of my favorites, at Park Place in Portland finally went Pending after 440 days on the market. This fantastic condo was originally priced at $1,195,000. The listed price when it went pending was $997,000. So the best case scenario…it sells at list price. Even then it will have sold for more than -16% from it original list price.* While it may appear that the sellers were getting $198,000 less than they were hoping for, let’s look at the real numbers. If the sellers would have priced it closer to market value at the time, maybe $100,000 to $150,000 less, it would have had a very good chance of selling in 3- 6 months somewhere in the $1,050,000 range, instead, it will sell for (again best case scenario…$997,000) The sellers would have made about $50,000 more than what will be the reality. What is often overlooked though is the cost of carry! The sellers had this condo at Park Place on the market for over 15 months. Now let’s say they put a couple hundred thousand down when they made their original purchase. This would have given them a monthly mortgage payment in the $5,000 a month range. The HOA fees were about $705 a month and taxes were about $850. So the actual cost to carry for the 15 months was about $98,000. Had they sold in a 6 month scenario like mentioned above, their cost to carry would have only been $40,000. In the end they could have netted an additional $110,000 or more than what will actually happen.
( ***This unit actually sold for $945,000 or -21% off of it’s original list price)
So what does all of this mean?
As a real estate agent, my job is to try to sell your condo for the highest possible price and do it in a reasonable time period. Time and time again we see sellers trying to “test” the market with an overpriced listing and having it come back to hurt them in the long run. Here are a couple of thoughts to think about when selling.
Lead the Market… don’t chase it! The end result, unlike the above example, it will result in a quicker sale saving you on mortgage payments, HOA fees and taxes. Also, a home that is priced correctly will attract more serious buyers who are ready to pull the trigger and make a full price offer for fear of losing a “decent” value.
Increased Response… When agents see a new listing come onto the market that is priced correctly, they will make special efforts to tell their buyers about the unit. The end result will be more showings with qualified buyers.
Less Inconvenience… Let’s be honest here. Nobody enjoys having strangers walking through their home. In addition, it takes much time and energy to keep your home in “Show” condition as well as constantly having to make arrangements to leave for showings.
Great Internet Marketing… Do NOT underestimate the importance of this one fact. 93% of buyers begin their search on the internet. Work with an agent that is a condo specialist and most important, one that has strong internet exposure! If you own a mid to high-rise condo in Portland and plan to sell, do some research. Think like a buyer and search on Bing and Google and do searches like serious buyers do. Search for “The Casey Portland” , “Encore condo HOA fees” , “Atwater Place amenities“. What do you see show up on these searches? What you will see is a couple us agents who specialize with condos. This is where you want YOUR LISTING to show up …right? What you won’t find are agents that are usually selling homes in Beaverton or Lake Oswego!
Bottom line… if you are selling your condo or loft, work with someone who has marketing that is targeted to condo buyers EVERYDAY!
I believe that marketing is the most important thing when selling your condo. But remember, on overpriced condo can easily have you selling your condo for far less down the road than if you would have had it priced correctly from the beginning!