A client of mine sent this news article today that I thought is worth mentioning. <Thanks Harold!> It doesn't come as a surprise given the bubble's bursting last year to hear about some buyers backing out from new condo projects currently on the market. From the condo projects I have reviewed over the years, I'm hearing of backouts of anywhere between 10%-15%. Of course some of those happened even when the market was doing well. So in this slow market, how are these condos holding up?
Here are some highlights from the article:
- At Olive 8, 180 of the 227 condos were presold, almost all by early 2007. 20% of those buyers have expressed concern about getting financing to close, and the developer is trying to help them.
- Fifteen Twenty-one presold 138 of its 143 units. 37 of those buyers have backed out. 75 units have already closed.
- Escala have sold 30% of their 270 homes. The developer hasn't heard from any buyers who want to back out.
- Vulcan Real Estate has pushed back the start of closings on its nearly finished Rollin Street Flats project (due to the new Fannie Mae guideline), where only one-quarter of the units have been sold. Vulcan recently dropped prices on eight of the 133 units in its 19-story, almost-done Enso project, where about 60 percent of the condos are under contract.
Here is another related article written by an Olive 8 buyer.