CONDO COMEBACK: Following a dearth of new supply after the 2008 economic recession and credit crunch, a new cycle of in-city condominiums will begin becoming available in 2015 as both homebuyer interest and median home prices rise. As illustrated, the resale market is also expected to expand significantly as new product allows move-up buyers to introduce more resale inventory to the marketplace and more renters are expected to purchase that supply.
*Source: The Puget Sound Business Journal
Similar to the single family trending, inventory for King County condos has been trending downward and prices have been rising. A new crop of pre-sold condominiums in downtown Seattle will spike the total unit absorption and the average sales prices.
Clearly the percentage of new construction sales into all condominium sales has been trending downward, mostly because there has been effectively no new construction built (some supply from buildings that delivered in 2010 were later absorbed in the following years). It is anticipated that a similar cycle of increasing demand like 2003 through 2007 is occurring, however there are far fewer new units being added to the market that are for sale at this time.