August 12, 2009

Uhm. Yeah, I'm just gonna call bullshit right here

The last units at the Bel Air condos on South Congress between the Ben White freeway and Stassney were auctioned over the past weekend. The larger two bedroom units went for up to $240,000.

Just as a point of reference, you can buy a decent 3/2 in that area for less than $200,000. With a yard and more square footage. Granted, it's not brand new but it also doesn't have a view of a junkyard.

The best part of the article...

Winchell said the condo market in general has slowed nationally and locally over the past six to nine months.

However, he said Austin doesn’t have a large excess supply of condo units compared with other markets.

“I think Austin will be one of the first to recover,” he said.

Larry Warshaw, a co-developer of several condo projects in and near downtown, including the Spring high-rise that opens this month, said in an e-mail that “qualified buyers are having no difficulty getting financing.”

At Spring, he said, more than 100 buyers are expected to close on their units and move into the building within the next 10 to 90 days, “and virtually all of them have traditional Fannie Mae-approved residential financing in the $300,000 to $1 million range.”

At the W Austin Hotel and Residences under construction downtown, developer Stratus Properties Inc. said that almost half of the 159 condos are under contract, representing $80 million in sales, and that no one has walked away from a contract. That project will be completed in December 2010, with the last condominiums finishing in May 2011.

Oh. My. Where to begin... first off, we do have a lot of condos all over town so there's pretty decent supply. We also have a lot of Single Family Residential (SFR) units on the market and more on the way thanks to foreclosures. No, we're not the Inland Empire region of CA, but it's not the market here is breaking records to the upside. Needless to say, we're not going down the tubes but it's going to be a year or more before things are stable.

As for the Spring, there have been some recent changes on the secondary market regarding acceptable condo projects, especially new construction. They may not effect these first closings, but they'll probably effect the ones immediately after. And how many of those units were financed by TBW?

The best is the part from the W... no one is backing out of the contract yet? Big shocker since that money is (likely) non-refundable and you won't even know their intentions until December, 2010.

Posted by mcblogger at August 12, 2009 08:53 AM

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Comments

Some units at Bel Air have a view of the Driver License Department. Watching who goes in and out of that door can be more entertaining than the most brillant sunset.

Posted by: Captain Kroc [TypeKey Profile Page] at August 12, 2009 07:57 PM

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