The current market is an interesting one.We continue you see many price reductions on properties. With that said, condos in desirable buildings like The Cosmopolitan, if priced right, will sell in a short time. There are many units in the market, but special units, units that are not so typical can go quickly.
In a previous post I mentioned that buyers who have patience will be rewarded. We have seen many properties that have gone through 5-6 price reductions. Condos that were way overpriced are getting pummeled , especially those that have had that many reductions. A good example of this is a condo I have talked about before is the penthouse #1502 at the Elizabeth. That penthouse was originally priced at $3,650,000… a number that was incredibly high from the start. Now, after another price reduction, it is now priced at $2,695,000. If you may recall, when I previously mentioned this unit it was at $2,995,000 and I said I really liked it but that you will be able to pick it up at a better price later. That time is here! And now that it has struggled for a year on the market and gone through 5 price reductions, the sharks are circling and will eventually get an even better deal on this on. If you can pick up this one for $2,400,000 to $2,500,000 and add $100,000 for a new kitchen…you will have one stunning unit for a price much less than you will find in new buildings like Vista and The Cosmopolitan. In 2016 I sold a similar penthouse (#1406) in the same building. This would have been the ideal comp when listing #1502 and if it would have been priced correctly, maybe $2,850,000 to $2,950,000, it probably would have sold. Now, because it was so overpriced, it will probably sell for $300,000 to $400,000 less than it should have.
While I am talking about penthouses, I would like to revisit the new Vista condominiums. This seems to be a subject that my clients keep bringing up. When I wrote about the Vista penthouses in a previous posting: https://luxurycondosofportland.wordpress.com/2018/10/12/why-are-the-vista-penthouses-not-selling/ I believe at the time they had 1 penthouse sold and 2 were pending. (out of a total of 6) Now it looks like the two pending units fell out of escrow and only #2012 has sold at a price of $3,075,000. There are still 5 of the 6 penthouse units on the market.
Portland is soon to see two of its most expensive condos hit the market! Both of these penthouse condos will be in the $6,000,000 range. Based on their square footage they will be priced at $1192 to $1370 a square foot. Keep in mind, Vista #2112 is $1228 a foot. The difference is that both of the new penthouse listings are 7 to 10 floors higher. They are also totally custom with very high end finishes. If you are in the market for a large, stunning $6,000,000 condo, give me a call and I can give you a heads up as to where these penthouses are and to get more information, give me a call.
Are you looking for something a little more affordable? You will begin to see more condos coming on the market. Many will stay on the market for awhile and others will not. The ones that won’t are ones that are more unique like a special corner unit in a building or something like a 1 bedroom penthouse unit. When you have a condo that is unique, the urgency to not miss out is much higher. When you have 10 to 15 condos that are very similar like interior units at the Edge, Elizabeth, Gregory and the Elliot, there is no urgency or fear of loss. As you move forward in your search for a condo, work with a specialist, someone that understands the condo market and understands why one unit at $600 a ft make sense while another one does not. Just as a $6,000,000 penthouse at $1190 to $1370 a foot can make more sense than the very linear penthouse units at Vista priced at $1050 to $1228 a foot or why the 04 units at Vista were priced correctly and made sense at $922 a foot.
In my post about the Vista penthouses (see link above) I mentioned that the views from The Cosmopolitan were much better in the floors 19, 20 and 21st than those same floors at Vista. A 20th floor unit at Cosmo just went pending at $1122 a foot. Compare that to one of the 20th floor penthouses at Vista and there is no question…the views from the Cosmopolitan unit is far better and the amount of windows and natural light make it hands down a better value!
Brad Golik is a 15 year real estate veteran and is a condominium specialist with the market leader…Christie’s International Real Estate. You can reach him at 503-896-8856 or at his website http://www.LuxuryCondosofPortland.com
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This is question I have gotten several times in just the last week. In fact, I get questions about Vista frequently.
Three words…Priced too high!
When The Cosmopolitan went on the market, it was a very different market. Buyers were paying a premium, and they knew it! They were hoping at the time that the hot market would continue and that the values would catch up to the the prices they paid. They were lucky because that is what happened. Today, not the case! The condo market has slowed a ton. Last month, of all listings in the Pearl, over 50% of those listings had to reduce their price. Days on market for higher end condos is now over 100 days! For many penthouses that have been on the market, we have seen multiple price reductions…not just one!
So, when I say that the Vista penthouse units are priced too high, I would like to support my comments. When The Cosmopolitan came on the market, I was very critical about the new building. The fact was that while I did like many things about the new building, I just had issues with the pricing. With the Vista, I believe that some of the lower priced units are in line with the current market. The penthouse units are a whole different story. For one, they are not like the cosmo penthouse units and do not deserve similar pricing. They are very linear and do not offer the floor to ceiling windows and views that you find in The Cosmopolitan. This is a big one because this is something buyers really like. In addition, look at the floor plans below. There is a stark difference between the amount of windows in The Cosmo compared to that of the Vista. In my opinion, this is why they are not selling! Also, the developers are asking 27th and 28th floor prices (The Cosmopolitan) for 19, 20 and 21st story units. I must say, I got a little giggle each time I saw the adds for Vista that asked “Ever wonder what the views are like from the Penthouse? My immediate thought was … ya, like the views from the 21st Floor at the Cosmopolitan that were priced at $875 a square foot…not over $1250 a foot! And to be honest, I do not believe that the Vista penthouse views are as good as the 19th – 21st floors at The Cosmopolitan.
The below floor plan is from the Penthouse #2815 at The Cosmopolitan. It offers panoramic views to the east with Mt. Hood and to the south with stunning city views!
Now lets take a look at the Vista penthouse on the South side #2108 currently priced at $3,216,000 . It is very clear when you look at them side by side the difference in the amount of windows/walls. Which is going to offer the better and more panoramic views…hands down it is Cosmopolitan #2815! In addition, #2815 is seven stories higher which adds tremendous value ( and if you remember, Hoyt put a premium of about $88,000 per floor above the 20th floor in the Cosmo).
Now lets take a look to the East. In most buildings, having an east view of Mt. Hood gets a premium. But, when your views are out of windows like shown below from Vista #2108…is it worth it?
Options! If you are in the market for a Portland penthouse, you have options. Unlike when the Cosmopolitan went on the market, a buyer has many more options then at that time. Back then, inventory was very low. In addition, condos are staying on the market longer and we are seeing many price reductions. If you are thinking about a penthouse purchase in Portland, here are a few good options:
1st: Pinnacle #1403 $2,488,000 – While you will be slightly lower being on the 14th floor, I believe your views are really much better. With #1403, you get true floor to ceiling windows with exceptional views to the south and the nighttime city lights. This unit was recently remodeled so you are getting everything brand new just as if you were buying at Vista! Like the Vista penthouses, this one offers 2600 square feet.
2nd: This is a penthouse that I like a lot… The Elizabeth #1502 $2,950,000 Another unit with many floor to ceiling windows looking to the West Hills and the city lights to the south. This 2-level penthouse has tons of character. With 3443 square feet, it is much larger than all six of the Vista penthouses and compares more closely to #2815 at The Cosmo which has 3131 square feet. This one has been on the market for awhile now after several price reductions… and you might be able to pick it up for an even lower price.
3rd: While this Portland penthouse is not in The Pearl District, it does deserve mention… #1301 at The Strand $2,395,000 – This 13th floor penthouse offers spectacular river, marina and city light views! Offering 3220 square feet with walls of windows, this unit offers some of the best daytime and nighttime views! If you can put up with some “white noise” from the rooftop deck, it offers stunning views…see below!
In closing, I just want to say I am a fan of any new condo building in the Pearl District or any other area of downtown Portland. With any luck we will get other developers looking at our great city with plans to build something that is uniquely Portland. As for Vista, sales have been much slower this time around. As I mentioned, there are some reasonable values at Vista…just not at the penthouse level! I do not believe that the designs, layouts and views are worthy of the $2,821,000 to $3,335,000 pricing.
Brad Golik is a condo specialist with Christie’s International Real Estate and LuxuryCondosofPortland.com You can reach him at 503-896-8856 or at firstname.lastname@example.org
Every condo may or may not have the best location… in the building or within a neighborhood. So when you go to sell, what are you going to do? Watch this video if you want to see what I think are the three most important words in real estate!
Brad Golik is a condo specialist in Portland, OR. with a focus on the Pearl District, South Waterfront and downtown. You can reach him at 503-896-8856.
This beautiful 28 story tower is the tallest condominium building in Portland’s Pearl District. To see available units in this building, call Brad Golik at 503-896-8856 or contact him at email@example.com.
The market has noticeably slowed down, especially in the condo market. Are there deals to be had moving forward? Yes!
Everyone always wants the best value when they are buying a home and in this market, here is the best way to purchase a home/condo at a discount to the market. Now keep in mind this is only my opinion, but moving forward, I believe you will see some clarity in what I am saying.
When something is priced right, you will most likely not get a “deal” on that home as it will most likely sell in a reasonable timeframe. Where will you get a deal? You will find your best deals in homes or condos that were originally overpriced. In the condo market this usually happens for one of two reasons. First, there are some agents who “Buy” listings. In other words, they tell the seller a higher price than the true value in order to get a listing over a competing agent. You have heard me say it before and I will say it again… this is a bad way of doing business that certain agents use and in the end, it hurts sellers. After sitting on the market with no offers and no showings, the listing agent tells the seller they need to drop the price. ( Usually down to where it should have been priced!) Usually, and unfortunately, the seller will keep that agent even though he or she told them they would sell it at the higher price.
The second reason they are overpriced is the agent is not experienced in an area or type of sale. I see it often in the condo markets where an agent just does not understand condo pricing.
Now, back to finding deals in the market! What happens often in this type of market is an overpriced home will sit on the market and go through several price reductions, often blowing right through the floor of where it should have been priced originally. A couple examples of this in the upper end of the condo market:
A unit that I like very much is a penthouse in the Pearl District that is listed at The Elizabeth at $2,950,000. A different agent had this listed previously at $3,650,000, a number I thought was way high! ( and I know this because I sold another penthouse in the building a year earlier for $2,350,000.) My original thought was what could I sell my previous listing for if I put it back on the market. I was thinking $2,700,000 to $2,900,000. Mine was slightly bigger and all on one level, a positive in my book! This is about where I thought the other unit should have come on the market. I believe that if it would have come on the market at the correct pricing, it would probably have sold by now. Now, after months on the market, and multiple price reductions, it will start to get some lower offers… again, this is where you can get some deals in this market! If I am representing a buyer on this property, I truly believe they will now be able to get the property for well under what should have been the true value at around $2,900,000. The best part is you can find these deals in all price ranges, not just the upper end of the market. A buyer with some patience, and that keeps his or her eye on overpriced units will be rewarded in the end. Overpriced units will go through several price reductions and sell for less than they should have!
Oh, I said a couple examples above didn’t I? If you are a penthouse buyer l looking for a deal… here is one I have talked about before, several times actually.
If you read my last blog post, you may recall me talking about a penthouse at The Strand that had reduced it’s price to $2,995,000. In my post, I mentioned they would probably start seeing the sharks circling and offer $2.6. Well since that posting, the listing has been reduced once again, this time down to $2,699,900. Now don’t get me wrong, this is a nice penthouse unit with some really nice views but it is at a point where someone is going to get a good deal on this beautiful penthouse! Had this penthouse been priced even close to reality when it was originally listed, it would have sold at a much higher price ( remember, the market was much stronger a year and a half ago)
No matter what your price point is, remember, there are condos out there that are overpriced! Keep an eye on these units and when the time is right…go in and make a low offer and you just might get a great deal!
For those of you who already own a condo and are thinking about selling…please use this as an education to the negative effects of overpricing!
Brad Golik is a condo specialist with Total Property Resources and LuxuryCondosofPortland.com you can reach him at 503-896-8856 or at firstname.lastname@example.org