SEATTLE’S CONDO PIPELINE EXPECTED TO DRY UP

This from staff writers Jeanne Lang Jones & Kristen Grind at the PUGET SOUND BUSINESS JOURNAL: With 40 condominium projects in the pipeline for downtown Seattle one might expect a glut of new units on the market. But tight fisted lenders and hesitant buyers, both reacting to the nationwide credit crunch have severely hobbled the once high-stepping market. The pace of development has slowed so sharply that local experts predict a shortage in 2010 that could drive prices up. One consultant forecasts delivery of just 189 new units that year-down from an average of 1,100 anticipated in each of the prior three years.

…No new condo project has broken ground downtown since the last two buildings -275 unit Escala and 204 unit Equinox-got underway last summer….

Since it can take as long as two years to build a high-rise condominium tower the dearth of new construction is pushing delivery into 2011-assuming those projects, which represent more than half of the 40 in the pipeline, can find financing. Buyers too, face credit constraints but are still expected to outstrip the reduced supply. By 2010…1,000 buyers will be looking for new condos in downtown Seattle, an increase from current levels and five times the expected supply.

sparyd@johnlscott.com