Friday, February 10, 2006

Condos For Sale

The Wall Street Journal has and extensive article today about the glut of condos in the market in Atlanta, Minneapolis, San Diego, Boston and Sarasota. Basically, the article says that there is a glut of condo inventory in these cities, with some being worse than others. This is what the article said about Sarasota Florida.

[IN A SNAPSHOT: An overbuilt downtown condo market is leading to incentives such as deals on beach-club memberships.

The downtown market has been on a tear since the Ritz-Carlton, which included 50 residences atop the hotel, was completed in 2001. More than a dozen condo projects have been built since then in this city of 55,000, and there are as many units under construction now as have been completed over the past six years. Plus, about 273 condos are on the market.

That's almost triple the amount of condos on the market here a year ago, according to real-estate firm Michael Saunders & Co. And more continue to be announced, including Marquee on the Bay, a 16-story tower with 12 units starting at 4,750 square feet for $3 million, and the Grande Sarasotan, with 144 condominium units priced from $1 million to $3 million.

"Where are the people going to come from?" says broker Barbara Ackerman, who predicts the median condo price in downtown will drop a "minimum of 10%" this year.

January is typically a slow month here, but this year there were six condos that resold, down from 14 in January 2005, according to Michael Saunders & Co. It's no longer uncommon for sellers to offer hard-to-get golf and beach-club memberships, which can cost as much as $75,000 apiece. Bert and Jane Kummel, retirees who put their three-bedroom condo on the market for $2.4 million at Thanksgiving, have thrown in $1,000 worth of opera tickets as a lure. But to no avail, says Mrs. Kummel: "It's a great marketing idea, but people just aren't buying like they were."]


Blogger grim said...

Home Prices Do Fall - A Look At The Collapse Of The 1980s Real Estate Bubble

Compilation of articles from the NY Times that covered the real estate bubble of the 1980's. Covers NJ and the NY metro area.

Take a look, it's an eye opener.


Friday, February 10, 2006 7:58:00 PM  

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