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Condos Converted as Seattle Bank Owned Homes Cut Prices



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By : John Cutts    99 or more times read
Condos are being converted off into rental apartments or sold off at big discounts as the still relatively high number of lower-priced Seattle bank owned homes continue to push down residential prices.

Among these condos are the Bravern Signature, the Escala and the Fifth and Madison developments.

One of the two towers of the Bravern condos is being converted into a rental apartment building and rented out until home prices recover. According to developer Schnitzer West, the apartment conversion will be carried out in a way that reconversion to condo is possible. The 232 apartment units available are being rented out at a minimum of $1,100.

Additionally, condo prices in the other tower have been reduced, with the lowest-priced unit offered at $320,000. A total of 215 condos are available.

Meanwhile, the prices of units at the downtown Escala condo complex have been cut down by 20 to 50 percent to rev up sales. Despite being advertised as a luxury development that will be able to resist price cuts, the 269-unit Escala later bowed down to price reduction strategies when only six units were sold.

Previously, unit prices were in the $600,000 to $12 million range. Now, the one-bedroom, two-bedroom and three-bedroom units are being sold in the $384,000 to $1.6 million range. The highest-priced unit, previously priced at $12 million, is now available at less than $7 million. The $4-million unit is now priced at $2.3 million.

Indeed, the price impact of Seattle bank owned homes spread out into the condo sector massively. Prior to the Escala, another high-end downtown condo development, the Four Seasons, cut down its prices substantially.

The numbers of bank owned homes in Washington and in Seattle have been declining, but they are still contributing to the significant drops in prices of condos and other residential developments. Of the 2,670 units put into the foreclosure process in February, a total of 1,157 units or 43.3 percent were bank owned foreclosures.

The ranking of Washington in the state foreclosure charts is also low at 33rd, and its February foreclosure numbers marked substantial decreases month-over-month and year-over-year. But foreclosures are still contributing to the condo market downturn.

Auctioning off unsold condo units in Seattle has been occurring more frequently as Seattle bank owned homes and the downturn have been dampening the condo market. Over the past few months, unsold condo units at the Fifth and Madison, the Lumen in Queen Anne, the Gallery and the Brix were auctioned off.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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