Saturday, July 24, 2010

More new condo inventory

by Bill McBride on 7/24/2010 04:30:00 PM

Another update on condos as shadow inventory ...

From Roger Vincent at the LA Times: Luxury condo tower in Century City is completed

The prices, exceeding $2,700 per square foot, were a record high for Los Angeles-area condos. ... In recognition that times have changed, developer Related Cos. reduced prices as much as 25% on the building's 140 units. ... About 25% of the building's residential space has been sold or is in escrow ...

A handful of other deluxe condominium projects have opened in recent months
So 75% are still for sale.

There are some areas - like Las Vegas and Miami - that have a huge number of vacant high rise condos. But there are also many smaller buildings that are mostly vacant in a number of cities (like in New York, Chicago, San Diego, Raliegh, N.C. and Irvine, Ca).

Unless the high rise condos are listed for sale, they are not included in either the new home inventory report (from the Census Bureau) or the existing home inventory report (from NAR). They are part of the shadow inventory ...