Saturday, August 26, 2006

Big Price Cut at Cortez Blu Condominiums

I think that downtown has a real challenge in 2007 in terms of stopping the losses that the market has been incurring. Below is an email snippet from the developer of Cortez Blu. While they aren't saying "PRICE CUT" this unit has clearly taken a reduction. At $345 a square foot this relative bargain is a sure sign that developers that are long unsold units in new developments will cut prices in order to move inventory. There are thousands of new condominium units coming to the downtown neighborhoods in 2007 & 2008.

The Lodge at Bankers Hill new condominium development has also endured a price cut.

Cortez Blu by
K. Hovnanian® Homes™ Presents:
Residence 203 - Plan C
2 Bedroom, 2 Bathrooms
Approximately 1,254 Square Feet

Room dimensions may vary. Prices, availability, and specifications may change without notice.

Featured Price

Plus an additional
$10,000 Closing Credit
Features Include:
  • Upgraded Flooring
  • Granite Countertops in Kitchen and Bathroom
  • Stainless Steel Whirlpool® Appliances and Refrigerator
  • Washer and Dryer
  • Separate Shower and Tub in Master Bedroom
  • Large Walk-in Closet
  • 9.5' Ceilings
  • Gated Underground Parking


Mark in San Diego said...

Cortez Blu dumping doesn't suprise me. . . I think I mentioned here a few weeks ago, I walked past there and saw evidence of only two units occuppied. At that price for a 2 bedroom/ 2 ba, with 10K in upgrades, etc. I might even be interested!. . .but this type of thing will kill used condo sales.

Mr. Brightside said...

Hi mark,

I'm not suprised by the price cut either but I will say the unit is a relative bargain. I do think if you are buying a condo right now you really need work a good deal as I think you'll need the downside protection of buying smart.

I was hanging out with a neighbor recently that paid a ton of money this June for a very marginal property. She could have done so much better.

Anonymous said...

There are people that literally paid that much for a one bedroom, non-view unit, ~800 square feet at Discovery which is also in the Cortez Hill neighborhood.

I have to wonder is the bottom if falling out of the the market.

Mark in San Diego said...

Mr. Brightside. . .

Yes, I will be very careful about buying. . .actually, I am waiting until next year anyway for over the 55 Prop. 93 property tax reason. . .if I buy in the second year after sale of old place, I can add 10% over sale price to new place. I figure by that time, I could buy anywhere for under 500K!

Mark in San Diego said...

Treo update. . .I believe you had unit 1700 (in foreclosure according to Craigslist)on this web log. . .although being sold at 749K, I looked there yesterday, and their Great View will be gone as the Saphire goes up past 20 floors right across the street. Another thing for buyers to beware of - views may not always be there!

Mr. Brightside said...

Hi Mark,

I agree on the views with this situtation. I think that a lot of people during the frenzy "snapped up" (I've always hated the phrase) whatever they could without regard to thinking much about what could happen. There is also a lot of bad information out there regarding what can and can't be built. Choose wisely if you are looking for a view.

Anonymous said...

I'm not surprised either...on MLS there is a tiny one-bedroom unit (552 sq. ft) on the 17th floor with a sweeping north east view. A week ago I could have sworn it was 398K and now it is 378K. The layout looks a little odd, almost like a triangle and I wonder about the quality.

Laurel Bay on Banker's Hill appears to not have many residents either. I wonder how many developer units are really out there that aren't listed on MLS.

Mr. Brightside said...

Regarding Laurel Bay, my data shows that 41 units have been resold.

This is out of 150 units in the building.

I'll probably post an analysis after I get some fresh data in a few weeks.

I don't think this project is going well at all. The prices are very high and the market has clearly stepped down.

Anonymous said...

The Cortez Blu 2 bed 2 bath condo is a great deal (for now at least), but the HOA fees are not! $480 ish according to our tour (and I had to wonder whether ish meant, $500), and it basically includes water. No gym. No pool. Nada.

Anonymous said...

Does anybody know what the HOAs at the neighbouring complex, Aria, are likely to be?

Mr. Brightside said...

I don't know for sure but the two times I visited the sales office I was both impressed with the project but also turned off over price and HOA fee.

At least it'll have a pool albeit it's positioned behind the building so it might not be good for much more than laps.

dave said...

Units this size without views at next-door discovery were selling for $650K. HOA was about $550/mo.

But there is a great gym and pool.