Tuesday, October 30, 2007

Condo Price Cuts: October Update

During the year I've been tracking condos listed on MLS to identify sales by flippers and determine their anticipated profit; I've used this information in many of my posts. I periodically monitor this data source for pricing actions as the year progresses to see the degree to which prices are falling, if at all. I last posted my observations in late September.

The table below shows a comparison of asking prices for condos. I compared listings from September 23 to those I found on the Internet at the end of last week. Of the 419 condos listed on September 23, 219 are still listed under the same MLS number. Of those 219, 77 have reduced their prices, two have raised their prices (!), and the remainder have made no changes. Of note:

  • Can you believe a condo's price can be cut by $300,000? $100,000?
  • At the Whitman, MacBallard | Williams has cut the prices on units #201, #301, #620, and #901 by $20,000-45,000 while raising the price for #509 by $40,000.
  • At Chase Point, the developer has cut the prices on units #212 and #PH2 by $134,000 and $99,000, respectively.
  • Again at Chase Point. Although the owner of #711 has reduced his/her price by $225,000 (!), s/he's still trying to gain a profit of $769,400 after owning it for four months and 14 days. Excuse me while I pause to catch my breath.
  • Six units are listed at The Atlas [1111 25th St NW]. You may remember unit #101, which had reduced its price by $64,500 in September; it's dropped another $29,901. Unit #723, another $25,000 drop. That's a loss for #101 ($74,901) and #723 ($49,900) from their original purchase prices in 2005.

The table below shows the price changes [click on it to view an enlarged copy].


sc in dc said...

I would suggest to you that when you report a price drop that you also report the original or new price.

A $25,000 price drop sounds like a lot, but if its $25,000 off of $1m then not so much.

Really love the blog, btw.

sc in dc said...

After looking at the table, I had an idea for another potential enhancement to this report. In the table, you might report a percent change to the price.

[new price - original price]/
[original price]

For most of those prices in the table it would be negative.

That would help put things in perspective.

Sorry if I'm being too critical. I work with numbers all day & I can't help it!

Keith said...

I do report the new price - it's the price listed under October 26. Point taken on the original price, ditto percentage drop.

Anonymous said...

Keep in mind this is only for 1 month- case in point: 1280 21st Street. Condo first came on market in July/August timeframe asking $619,000. Then lowered to $599,000...

Keith said...

Right, I did that analysis, too. However, I didn't want to overwhelm folks with data - I know, why stop now - so I limited the information to two data points, 9/23 and 10/26.

But I get the point - the totality of the price reduction isn't captured.

Anonymous said...

Hi Keith,

I'm the guy who brought Senate Square to your attention. I agree on the actual price being noted. For example, your Whitman items...I looked that their table at the Mc-Ballard thing and they are still gouging $550K+ for everything.

So either dropped since then, or these are not that big in context to the overall unrealistic price gouging.