The Wyatt | x | 15 floors | Complete

[PDX City-State]

Okay...I've heard this rumor three times now and want to see if anyone else has heard it. A very reliable source tells me sales are slow at the Wyatt and that it's becoming very likely the Wyatt will become luxury rentals. Anyone?

[kvalk]

I heard that too...but it might have been from you, does that count?

[Leo]

Originally Posted by PDX City-State

Okay...I've heard this rumor three times now and want to see if anyone else has heard it. A very reliable source tells me sales are slow at the Wyatt and that it's becoming very likely the Wyatt will become luxury rentals. Anyone?

It would not be a bad idea, but it doesn't seem like they're planning to go that way. They have a model unit now and are giving hardhat tours. Who gives hardhat tours for a rental?

[oregone]

That would not surprise me at all. One of the apartment buildings I manage is in the process of being sold. The original plan was to convert to condos, but now the plan is to leave it as apartments until the market turns around. Of course, I'm still losing the building.

[PDX City-State]

They have a model unit now and are giving hardhat tours. Who gives hardhat tours for a rental?

That doesn't really matter...just because they're exploring the option doesn't mean they'd stop trying to sell them. Condo sales are very soft right now...no one is buying.

[PacificNW]

⤴⤴ "no one is buying" is a generalization. Yes, the market has slowed, but people are still purchasing condo's.

[PDX City-State]

"no one is buying" is a generalization. Yes, the market has slowed, but people are still purchasing condo's.

You're right...condos are selling, but there's a whole lot of inventory right now above 350k. The entry-level market is still doing fine.

Mike

[PacificNW]

⤴⤴

[ScizzoTX]

Originally Posted by oregone

That would not surprise me at all. One of the apartment buildings I manage is in the process of being sold. The original plan was to convert to condos, but now the plan is to leave it as apartments until the market turns around. Of course, I'm still losing the building.

Oregone, is the building you're referring to The Louisa?

[oregone]

Originally Posted by ScizzoTX

Oregone, is the building you're referring to The Louisa?

No, different one. Is the Louisa changing hands?

[jonnyz1245]

AFAIK things are still on track at the Wyatt for a Nov 1 move-in

I have been on the fence on whether or not to buy unit in the wyatt. I want a unit with a deck and a view and pickings are slim in the pearl with that combo.

i do know that sales are slow and can't figure out why they don't just knock off 5 or 10% from the asking prices. I think those units would fly if they did that. They would still be on the high end at those reduced prices but right now they are way overpriced given other units of similar quality in the pearl...

both the encore and the wyatt are experiencing very slow sales. I have read price list for the waytt an over a 5 month period I think they sold a max of 6 units...

I also know that 4 of their sales staff up and quit/got fired last week and now work for realty trust. would be interesting to hear the story behind that one...

[pdx2m2]

I've also heard sales are very slow. They went from selling most units in a few months to selling 1-2 a week and now hear that it's more like 1-2 units a month.

[Leo]

Originally Posted by jonnyz1245

AFAIK things are still on track at the Wyatt for a Nov 1 move-in

i do know that sales are slow and can't figure out why they don't just knock off 5 or 10% from the asking prices. I think those units would fly if they did that. They would still be on the high end at those reduced prices but right now they are way overpriced given other units of similar quality in the pearl...

both the encore and the wyatt are experiencing very slow sales. I have read price list for the waytt an over a 5 month period I think they sold a max of 6 units...

At this stage of the real estate cycle, all the sellers chase the market down. Real estate is a pretty inefficient market; instead of prices decreasing when demand falls, prices appear to be stable while the number of transactions just plummets like a rock, indicating that the seller's asking price is way above the market price. If you look at cities like San Diego, DC, and Miami, it took them about 12-18 months to transition from positive price appreciation with slow sales to the beginning of a small amount of price depreciation. And sales are still slow, even at the lower price, indicating that the market price is falling faster than the sellers are decreasing asking prices.

I stopped by The Encore sales office last Thursday. It looks like they've sold only ten out of 177 units, with reservations for three more. Considering how heavily they've marketed The Encore during the prime spring selling season, I think that a "slowing" condo market would be an understatement. I also think that the true impact of the mortgage/credit squeeze has not yet worked its way into the real estate market, so I don't foresee much improvement for the fall (or next spring) selling season.

[jonnyz1245]

I don't think we have seen anything when it comes to what is about to happen with the credit market and the portland condo market. I live in the pearl and have a couple friends who are realators and the change is coming...slowly. The portland condo market is going to be hit very hard in the coming months, much more so than the overall housing market.

The encore/wyatt/937 have a lot of units that are unsold and will end up costing big bucks to carry. I would be surprised if they all go apt.

I have heard that the encore is going apt. but never the wyatt. and this comes from somebody pretty high up in the local game...

still, if the wyatt reprices down 5 or 10% I will buy a unit tomorrow!!

[Dougall5505]

what about the metropolitan? did that sell well

[jonnyz1245]

out for a year or two.

[MarkDaMan]

the Metro was selling long before our slowdown.

Originally Posted by jonnyz

I don't think we have seen anything when it comes to what is about to happen with the credit market

that is really true. A couple that are my friends decided to start looking for a place to purchase two years ago. Both of them are mangers at Starbucks, they both have excellent credit, and between them, bring in just shy of $70,000 per year. They decided to let the market depress a little bit to afford a nicer place and found the ideal location last November. Not until last month did they finally get a loan they could agree to. Despite the sub-prime fallout, the sub-prime terms for top of the line credit was the only thing they could get arranged until months of tedious work and paperwork that would make your head spin. Luckily, the same place remained on the market the entire time and their move-in is a week away. But if my friends don't easily qualify for a decent loan, I fear there are a lot of buyers not buying because of loan conditions, or lack of
loans that make common and economic sense.

[tworivers]

I'm glad I squeezed into the housing market three years ago when I did.

I got a close-in NE fixer for 200K. 30yr fixed mortgage w/decent interest (one of my parents had to co-sign at the very last second because my income wasn't quite high enough, which was humbling at the age of 32). 4 bedrooms. That extra br gave me enough extra wiggle room to afford the mortgage. And after 2 years of rapid appreciation I sold 50% of the house to a roommate and friend; we re-financed and I walked with some cash; and now my share of the new mortgage, minus one of the rented bedrooms, is under $300/month. I never thought of myself as "wily" until now... but it was really just luck and following my intuition.

Has anyone else had an experience like this?

I'm really glad that I didn't go with a condo, too, just because that market seems so much more volatile.

Does anyone have info on the Casey? Is the Atwater still dead? Both of those buildings look like quality, but I know their price points reflect that, too.

[PDX City-State]

I bought my first house with no money down in 2003...and I recently bought a condo downtown and found the entire ballgame had changed with regard to financing. Even with great credit, ten percent seemed to be the minimum down payment and the interest rates aren't nearly as good. Still, I disagree that condos are more volatile...they're just a little overbuilt and overpriced right now. For urban folk, a condo is the way to go...so convenient and enjoyable to have the entire city at your doorstop while still earning equity.

[Leo]

Condos have historically been more volatile than houses ... Although I think that may change this time around. The reason for the volatility is that condos behave much more like commodities: In a glut, you can find several condos that are very similar, and so they need to compete on price. Houses, historically, have been more differentiated, so price wars don't happen as easily. But these days, with hundreds of cookie-cutter houses in giant developments, I expect that houses will behave more like condos.

This slump could have a good side effect for those of us who like unique buildings in our town. I think it could provide an incentive for developers to stop building copies of a single design (The Gregory, The Edge, The Elizabeth) and bring something more unique to the marketplace. On the other hand, they could end up cutting their losses and simply going into hibernation until the next boom ...