Olive 8 is going on Auction on September 19th (Sunday). 34 homes will be auctioned by Kennedy Wilson, who was also responsible with the auction for 5th and Madison, Press, and Queen Anne High School. The 34 homes were previously priced from $395,000 to $1,235,000. Starting bids will range from $160,000 to $440,000. Click here for more info.
Related post:
5th and Madison and Trace Lofts Update
Queen Anne Auction- By the numbers
Lumen Auction Results
Brix and Gallery Auction Results
Press Auction: Going once, Going twice, Gone!
The previous prices of 395,000 – 1,235,000 are not the original prices. Can you exhibit the original prices?
So much for the Developer and the sales teams’ (three in counting) false promises of “NEVER” auctioning off Olive 8. That is one of the major reasons I bought into it.
Although it is a great place to live and I do like the quality of the building and finishes, I hope things won’t actually sell for those “Crazy” starting low-bids!
Wendy, should I be worried?
Is this any surprise to anyone?
The $1.235m price is a bit of a fib. Recently they sold some of the two bedroom units on those levels for around $850k, so $440k is less than 50% off. Given there is an unpublished reserve, they will probably sell around $600k.
Still, if you paid $1m a year ago, it would sting to lose 40%.
Is there a rental cap at Olive 8?
The selling price % of the previous listing price for the last few auctions (Press, Queen Anne High School, Lumen, Brix, Gallery, and 5th and Madison) range from 63%-83%. The average is 69%. If they are not overpriced to begin with, i would imagine to be close to ~70%. If they are, it will probably be lower than 70%. It’s hard to imagine it going lower than 1/2 of the previous listing price.
Here are the original prices from 2006:
http://www.seattlecondoreview.com/.m/2006/07/if_you_like_the.html?p=2
Hi Wendy,
This is your brother in law from Singapore. This Olive8 looks like a great project and good location.
Is it realistic to get a unit for the bids starting at $160k
Is this a good area …as defined as no homeless people, safe and clean?
Hi Pete, auction homes usually go for an average of 70% of their last listing price. It’s hard to imagine it going under 50% unless they have really overpriced it to begin with. In my opinion, they have overpriced it by ~5-10% on the lower price range ($300k-$600k). Olive 8 is on the east edge of downtown and it’s pretty clean and safe.
Honestly, there is NO CHANCE these are going to go for 70% above the beginning price. i say this for the following reasons:
1. you’re using the average of the last few auctions in Seattle as some sort of rule and i believe that logic is not accurate.
2. that was then…this is now. even if you accept the past results, that was a different market – even 6 months ago. housing has fallen off a cliff. well actually we can just see the cliff now b/c the mainstream media is finally covering the story and b/c the $8,000 tax credit expired.
3. olive 8 is nice..but it aint’ that nice! High HOA and that doesn’t even include gym membership. REALLY? really…you’re going to be paying nearly $800/month to START on the 2br and you gotta pay extra to use the gym. you kidding me?
4. Prices were so inflated to begin with, hard to know what true value is. prices are dropping quite a bit in belltown and other parts of town. The price of these is on par w/the new SLU developments…and SLU has a lot more going for it the nex 5+ years than that area of downtown does…as a long term investment.
5. prices are continuing to decline…theres’ absolutely no reason to think that prices (in Seattle – just like the rest of the country) will not be declining up to 20% over the next few years….
Definitely not a low crime area in my opinion. It’s one block from Seattle’s Greyhound bus terminal, there is a popular facility for transients nearby on 9th and there has been a lot of muggings and violence in the last few months. In late August a mugger with a handgun jumped someone for their iPhone right across the street – see http://www.seattlecrime.com/2010/08/26/irob-mans-iphone-taken-at-gunpoint-downtown
For more action in the area, see:
http://www.seattlecrime.com/911/event/id=1486767
http://www.seattlecrime.com/911/event/id=385182
http://www.seattlecrime.com/911/event?crime-event-id=1396001
http://www.seattlecrime.com/911/event/id=359715
http://www.seattlecrime.com/911/event/id=1437745
Bill, I appreciate ur comments before I heading for the Auction.
Seatle is doing well at the moment of economy downturn. I don’t have any reason of believing this will carry on forever when you saw San diego starting retreat.
Check out the video on this stabbing from Wed night – it’s the parking lot across the street from Olive 8. 🙁
http://www.king5.com/news/local/3-people-stabbed-in-Seattle-103018014.html
Wendy,
The link provided above for the 2006 prices does not work: http://www.seattlecondoreview.com/.m/2006/07/if_you_like_the.html?p=2
1 bedroom and 1 bath 685-814 Mid $400’s to Mid $600’s,
1 bedroom and 1.5 bath 825-1072 Low $500’s to Mid $700’s,
2 bedroom and 2 bath 1,339 Mid $800’s to $1M+,
2 bedroom+den, 2 batth 1,538-1,586 Mid $900’s to 1 M+
Looking at the Olive 8 auction results, average was 65.9% of the previous prices, at an average of $447 a square foot. Not bad, not great.