In my last post I expressed my opinion on the pricing of the new 28 story condominium, Cosmopolitan on the Park. The feedback I have gotten back has mainly been very supportive of my article with a majority of people totally agreeing with my thoughts. Not all agreed with me though. One undisclosed comment ( perhaps someone with the development company?) thought that Portland was ready to support these prices. One even went as far as to say that they thought I might have an ax to grind with the developer. This could not be further from the truth. As an agent that specializes with condominiums, I was as excited as anyone for this new project to rise from the ground! With low inventory levels, the idea of having a new project to sell was just what I needed! I cannot sell something that I don’t believe in or something that I view as a financial risk to my clients. I may have some clients that might still make an offer but at least they will be going into it with a good idea of the market risk involved.
With that said, let’s just jump to the facts. To date in 2014, 35 condos have been sold in the $1,000,000+ price range. Now remember, these are the best of the best in the Portland condo market. The average price per square foot of these 35 sold units was $579. Only 4 of the 35 units sold above the $700 a sq. ft. level. Two of these were at The Casey, one was a penthouse unit at The Gregory and the other was a penthouse at The Henry.
Now to do our best to compare apples to apples we will take the average price per square foot of only the 2+ bedroom units at the Cosmopolitan because that is the case with our top 35. The average price per square foot of all the 2 bedroom units at the Cosmopolitan…. Drum roll please, $739 a square foot! That is $160 a square foot higher than the best of the best. Now keep in mind, a penthouse unit will often carry a higher price per square foot than typical units and a good portion of our top 35 units were penthouses and still the average was only $579!
The fact is that I just believe this project is overpriced for the Portland market and I believe the above numbers supports my beliefs. The real estate industry is really supported by comps and the numbers above, and market demand, do not justify the prices being asked. One person suggested because they were not paying buyers agents enough that my opinion was somewhat skewed. While the developer is paying substantially lower than the project I mentioned last week in Seattle as well as the hot new twin towers project, Lumina in San Francisco, sales credit has nothing to do with my opinion. What it does have to do with, in my opinion, is the greed factor. Cutting back to what they pay the agents that have helped them with past projects, and charging over-market prices to condo buyers is a win-win situation for the developer! Many years ago I interviewed the CEO of what was at that time the largest real estate company in the world. What he said to me still remains in my mind today. He said “The best real estate transaction is one in which everyone wins!” In this current situation…only the developer wins… that is until they need to reduce prices to get the project done!
Since our last blog post last week there have only been 3 additional sales at the Cosmopolitan, now with a total of 36 sales. These 3 units were 1 bedroom Garden level units priced in the $400,000 range.
If you have questions about the Cosmopolitan or would like to look at some of Portland’s other great condos, give me a call at 503-896-8856 and we can set up a tour or just discuss opportunities in the Portland condo market.
Brad Golik is a condominium specialist and can be found at www.LuxuryCondosofPortland.com
Brad Golik of Windermere Northwest and LuxuryCondosofPortland.com has distinguished himself in the field of (luxury) condominiums and townhomes sales by earning the prestigious Certified Condominum Specialist® designation. This national designation is given to select real estate agents who have demonstrated the specialized education, market knowledge, competence and experience in successfully and effectively listing and selling condominiums, townhomes, and other forms of common interest developments (CID).
The certification and designation are offered by the Council of Condominium Specialists® which is the national, premier independent authority in assisting real estate professionals in providing high quality service and superior market expertise to the buyers and sellers of condominiums and townhomes (CIDs).
Brad Golik is the first real estate agent in Oregon to receive the Certified Condominum Specialist® designation!
The designation indicates the recipient real estate agent has worked diligently to complete essential real estate training and has met specific performance standards to demonstrate expertise in their local condominium/townhome (CID) market to provide the high quality real estate services his clients deserve. Real estate sales are a complex and challenging field to begin with,” said Candy Peak, Director of the Council of Condominium Specialists®, “but selling a property that is in a common interest development (CID), which involves both an individual and shared ownership in real estate, such as a condominium, townhome, planned development or any other property that is part of a homeowners association, requires an agent with the specialized real estate knowledge and expertise to professionally navigate a buyer or seller through the intricate path of common interest development ownership and sales.
“My commitment is to provide outstanding service to my clients,” said Golik, and “the Certified Condominium Specialist® designation ads additional benefits for my ability to meet the needs of condominium and townhouse buyers and sellers in my area. My membership in the Council of Condominum Specialists® Network also provides me with the marketing tools and networking capabilities that bring added benefits to my clients.”
For current information on condominium and townhome sales in your neighborhood and to receive a market evaluation on your property, contact Brad Golik at 503-896-8856 or through email at firstname.lastname@example.org . You can also visit http://www.LuxuryCondosofPortland.com
We all know that the Portland condo market has picked up and is doing well. How about the upper end condo market. Currently in Portland, there are eight penthouse condos for sale in the price area of $1,000,000 and higher. From a penthouse at Pacifica Tower priced at $950,000 to the “still on the market” penthouse at the Envoy priced at $2,495,000. In addition to the penthouses on the market, there also a couple lower floor units in the +$1,000,000 market such as a 13th floor unit at The Henry priced at $1,475,000 and a very steeply priced 10th floor condo at The Casey priced at $1,999,000. I say steeply priced because at nearly $2,000,000, I expect to be looking over nearby buildings…not looking into them. If I were going to spend $2,000,000 for a luxury condo, I think your dollars could be more wisely spent on unit #901 at Waterfront Pearl. This unit offers a spacious 3185 square feet with 3 bedrooms and a large extra room that could be an ideal theatre room, something you don’t often get with condo living. In addition, you are almost sitting on top of the Willamette River so views are pretty amazing!
In the last couple weeks, a penthouse unit at The Gregory was listed at $1,999,500 and sold in under a week. Yes, there are buyers out looking in this price range! When buying a penthouse condo in Portland, make sure that you are working with an agent that knows the market. If you are looking for a beautiful Portland penthouse condo, like the penthouse that just came on the market yesterday at The Meriwether, call me today and we can begin the process of not only finding you a great penthouse, but also negotiate you the very best price. When you work with me not only will you get a great tour of all the available penthouse condos, you will also get good advice as to the history of each unit and why they may have been on the market for so long or why one may sell quickly when others will not.
I am in the condo market everyday. I work hard to know the pricing in this market. This is something you will not have if you are selecting one of the luxury agents in Lake Oswego for example! And when it comes to selling one of Portland’s luxury condominiums, nobody offers a better condo marketing program in the + $500,000 condo market!
Forbes announces America’s Best Hipster Neighborhoods
See the full story and see how neighborhoods were selected.
The Pearl District is known for its art galleries and studios. It also has quite the java culture, with the second highest concentration of coffee shops per capita on our list. Farmer’s markets include the massive Downtown Portland market. Like Williamsburg, gentrification has led to higher costs-of-living in the area, with luxury Portland high rise condos emerging on the streetscape and warehouses converting to massive loft residences.
August was a very good month in the Portland condo and loft market with sales up 34% over July sales. Once again leading the pack was Encore in the Pearl District and Atwater Place in South Waterfront, both with 5 sales for the month. Two of the Atwater Place sales were resale units. The most remarkable thing about the 55 sales for the month was that only 2 of these sales were bank owned properties and just one was a short sale! With that said, there are currently 24 condos and lofts in the Pearl, Downtown and South Waterfront areas that are in a short sale pending status.
Buyers continue to find decent deals in the Portland condo market. An example of this can be found in the recent sale of unit at City Lofts. After being way overpriced at $1,100,000, and being on the market well in excess of 400 days, buyers were able to pick up this 2,456 sq. ft. unit for $760,000, more than 30% off its original list price. This shows us two things: 1)There are good buys to be had in the market and… 2) Sellers, don’t overprice your unit when you go to sell it. It will end up costing you more money in the long run!
At LuxuryCondosofPortland.com we are excited about the market! If you are in the market for a new Portland condominium, give us a call and we will get you out to see everything that Portland has to offer. If you are thinking about selling your condo or loft, again we encourage you to work with a condominium specialist. We don’t believe that an agent can’t just flip on a switch and become an expert in marketing to condo buyers overnight! We have worked hard to create a marketing program that targets serious condo buyers everyday. And, like marketing for any product, the more exposure it gets, the better your chances of getting a higher price!
The Henry is located on Couch between 11th and 12th. It consists of 123 Condos that
were built in 2004. This half block includes a retail base of approx. 11,000 sq.
ft. on the ground floor with three floors of parking above and 11 stories of
luxury condominiums. Situated in The Brewery Blocks at the entrance to
Portland’s Pearl District. The Henry Condominiums received gold LEED certification from
the U.S. Green Building Council, becoming only the third residential building in
the United States, at the time it was built, to achieve this rating for
sustainable design and construction. Portland
condos in the heart of the Pearl District.
Location: Pearl District
So it’s been a pretty rough market for a few years… are luxury condos selling in Portland? You bet they are! And leading the way in 2012 are our top 5 most expensive condos sold year to date.
Coming in at #5 is a penthouse condo at 937 www.937Condominium.com
With 1903 square feet and 2 bedrooms and 2 baths, this contemporary penthouse condo at 937 sold for $1,249,950.
At #4 on our list is a beautiful unit at one of Portland’s finest The Casey www.TheCaseyCondominium.com
With 2608 square feet, 3 bedrooms, 3 baths and killer views, this unit sold for $1,375,000.
At #3 on the list, a unit at The Gregory Lofts www.TheGregoryLoft.com
This unit features 2692 square feet with 2 bedrooms and 2.5 baths and sold for $1,450,000.
At#2, a brand new penthouse unit at Encore www.PortlandEncoreCondo.com
This unit, sold in February, features 2481 square feet, 3 bedrooms, 3 baths and sold for $1,800,000.
And the winner is… a unit at The Metropolitan! www.MetropolitanPortland.com
With a spacious 3245 square feet, 3 bedrooms and 3.5 baths this penthouse unit at The Metropolitan sold for $1,950,000.
Whether you are looking at a starter condo or multi-million dollar condos, LuxuryCondosofPortland.com can help you with all of your needs!
Selling your Portland condo or loft can be very difficult in todays marketplace. The most difficult thing perhaps, is accepting what the value of your home may actually be. When you do decide to sell your condo, you must remember that as a seller you do NOT control your homes value or the market conditions. As a seller, what you DO control is the price that you ask (which may or may not be close to the offers that you will get) and the condition of the property.
In our previous post, we discussed the benefits of proper pricing. Again, you want to lead the market…not chase it down! Also, keep in mind what current inventory levels are at. Now is a good time to sell you condo or loft because the inventory levels are way down and you may now be able to capture the best price that we have seen for sometime. And remember this… are the inventory levels in my own building high or low. If you live at The Elizabeth Lofts in Portland or The Westerly in Northwest Portland and neither building has many listings, you may be able to push the price a little because buyers who want to be in your building will not have as many choices. On the other hand, if you are living at Benson Tower in Portland or The Gregory Lofts and they both have many units for sale, your competition may force you to price your unit a bit more aggressively to stand out and get it sold. The key words here are “Stand Out”. With hundreds of other units on the market, the most important thing to do when selling your condo is to make it stand out from the others. Call LuxuryCondosofPortland.com to see how we make YOUR condo or loft stand out! ** 503.896.8856 **
Portland Condo sales for November
Condo sales for the month of November dropped nearly 25% from the previous month in which there were 48 sales in the Downtown, Pearl District and South Waterfront areas. In the Portland condo market in these areas, with units priced above $200,000, there were 36 sales for November. Taking the #1 spot for Portland condo sales for the month was 937 Condominiums in the Pearl District with 5 sales. Following 937 with 3 sales was The Elizabeth Lofts with 3 sales, The Metropolitan with 2 sales and Atwater Place also with 2 sales.
An important trend to look at is the number of Portland condos and lofts that are selling at more than 5% off of their original listing price. This can happen typically, for one of two of the most common reasons: 1st , sellers believe their condo is worth more and won’t budge on their pricing…until they HAVE to. Often leading the sellers to chase the market down and eventually selling for less than they could have if the unit would have been priced correctly from the beginning. 2nd, in competitive situations with competing agents, some agents will “Buy” the listing! What this means is that the agent will tell the sellers their unit is worth more than what a competing agent may have stated the value at. The overpriced unit will then sit on the market with very few showings and then the agent, after forming a relationship with you, will then “encourage” you to lower the price! When this happens, many times the unit becomes “stale” and the price reductions just continue. This, unfortunately, is something that is done by only a few and is a huge disservice to our industry and most importantly, a huge disservice to you, the seller.
A prime example of what can happen with a listing can be witnessed this month with a unit at The Metropolitan that recently went pending. Originally priced at $899,000, this unit was priced over $100,000 more than a similar floor plan a few stories lower. Had it been priced more competitively with the lower unit, say $40,000 more than the lower unit, it very well could have gotten an offer closer to it’s list price. Now, after chasing the market down, it most recently went pending at $800,000 and will most likely close somewhere well below $800,000. ( Update*** This unit SOLD for $770,000… only $10,000 more than the unit 5 floors lower***) This will be between 11-14% off of the original list price.(14.3%)
If you plan on selling your condo in the near future, keep this in mind. A condo that is priced correctly will most often sell for more than if you try to over price it with the idea that you will drop the price if you don’t get interest. This strategy almost never works in your favor. In fact, a unit that is priced at the market will often deliver much better end results for the seller.
When pricing your unit, keep these thoughts in mind:
The market value of your condo IS NOT
- What you have in it
- What you need out of it
- What it was appraised for
The market value of your home IS
- Based on today’s market
- Based on today’s competition of units
- Based on today’s financing availability
- Based on today’s economic condition
As a seller, you control the price you ask and the condition of your unit. You do not control market conditions or your homes value!