In a move that could shake up prices in the Capitol Hill condominium market, the developer behind Broadway’s Brix condos is taking the building’s remaining 40 unsold units to auction. 101 units have been purchased since developer Schnitzer West began marketing the new building at the beginning of 2009. The Stranger documented the developer’s recent woes in this article in April: Schnitzer Hits the Fan.
Capitol Hill resident and real estate expert Matt Goyer who wrote about the Brix auction on his Urbnlivn blog, tells CHS the Brix auction is good news for anybody in the market for a Hill condo but could be bad news for those who have already bought. “If you’re looking to buy a condo on Capitol Hill, this is great news,” Goyer told us via e-mail. “You’ll be able to buy a place at half at what it was listed at previously. However, if you own a condo on Capitol Hill this is going to bring down the average sales dollars per square foot for our neighborhood affecting your ability to resell and your ability to refinance.”
This is not the first time a condo project on Capitol Hill has resorted to an auction to move unsold units. In October 2008, 14 units in the 1707 Boylston building were sold in auction and 15 units in The Press building were auctioned off in December 2008. With more than twice as many units hitting the block on September 27th, however, prices at this auction could quickly redefine Capitol Hill’s condo marketplace.
The problem is that most people don’t realize that half off of $800K is $400K and still probably 200-250K more than they are actually worth.
Seattle is just beginning its downturn, behind San Diego and other markets by 18-24 months or so.
Think about all the condos downtown that are empty and have already converted into apartments. More units means lower prices and also lower rents.
Last month we were successfully able to negotiate our rent here from $2100/mo down to $1650.
It’s called deflation and it’ll be with us for a very, very long time. Don’t be a sucker and buy one of these at “auction”. Greater fools don’t just buy at the top, but also along the way down.
hey, maybe next they’ll auction off the first church condos. i think they’ve only sold two so far. if prices fall about 75%, i might be able to buy one…
Not reasonable housing prices! BAD!
The auction is so schnitzer can sell enough units to qualify for FHA loans in October when the rules change from what I’ve heard. It’s still unclear whether the auction units will go for what first bid is – the auction pepople are trying to get people in with prices that are below what even resales are going for. If they do go for first bid price it’s bad not only for those that live in brix but for those who own in the neighborhood in general. It will be very interesting to see what they go for.
So are you implying they’d actually prefer the prices to be as close to the minimum bid as possible to retain qualifications for the FHA loans?
The PI is reporting that the starting price for the Brix units have been set at $165,000 — down from $400-500K.
And they’re still overpriced.
Kelly
I am an owner of one of the Brix condominiums on Capitol Hill and I think it is important to let people know that while these are definitely very aesthetically pleasing units in an amazing location; the service, support and construction is heavily lacking. It has been an uphill battle with Schnitzer from the beginning. Not only have I had to fight and scream to get them to complete tasks by which they were contractually obligated, but the overall “cost cuts” that were implemented in order to complete this building is astonishing. It’s sad that my wife and I have spent so much money, (WELL beyond what anyone at this auction will pay) and our living experience has been so tattered with issues. We are supposed to LOVE this place and now that there is no chance of getting what we’ve paid for it in a resale, we are stuck with a home that isn’t great to live in. In my opinion, Schnitzer does not understand the definition of home?
once again an out of town out of state developer has attempted to reset the housing market here in Seattle. Build what the public did not want, use a marketing plan that at best is dishonest and then get the cattle of Seattle lined up to overpay for the under built crap they have been feed. On Sunday the cows will line up feed by a promises of a great deal and like bottom feeders fight for the right to overpay. Good luck, too bad when this is over the carpet baggers get to leave town laughing while those of us left here must fix, repair and correct