Coming conveniently at the tail end of my week’s conversations about new condo projects currently under construction, the Globe discusses the state of the market.
Pretty much, what they said is similar to what I’ve been saying. There isn’t too much of a slowdown in the sales market, in Boston.
However, there are several projects that are suffering.
Naming names, the Globe points out that 360 Newbury is only about half under agreement, even though the building will be completed and ready for occupancy, next month.
Folio, of course, is the poster child for projects in trouble, but we already knew that. Don’t expect sales of the century at Folio. There’s just too much interest. If there are units left over after the sale, you might be able to get them for less than list price … but, if there’s units left over, perhaps they won’t sell at any price! (Something to think about – will there be a stigma attached to Folio, forever, once it’s sold out?)
Agents in the city fear that boomers looking to flee into the city from the suburbs aren’t able to do so, because they can’t sell their homes. This is causing “logjams”.
Certainly, at the prices the developers are asking, the buyers are going to be current owners, looking to move, and not first-time homebuyers.
The Globe article mentions the Herald article of this past May, where it was reported that sales prices on the Waterfront dropped 40%.
As I pointed out in a blog entry, at the time, this was, of course, a bunch of crap, accurate information released by LINK and twisted and fudged by the Herald’s Scott Van Voorhis.
We’ll have to wait to see what happens with all these new developments. My expectation is that most will be successful. It will be very clear and evident what projects fail, and why.
More: Two tales told about luxury condominium sales – By James McCown, The Boston Globe