Condos Feel the Pain Too - NBC Bay Area

Condos Feel the Pain Too

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    NEWSLETTERS

    Condos Feel the Pain Too
    During these tough economic times, people forget that there are innocent condos that feel the pain too.

    Lending requirements are putting a hardcore squeeze on developers to deliver pre-sales for their condos before they go to market— check SoMa's BLŪ, Millennium, Cubix, et al. The requirements are generally standing at 25 percent, meaning for a development like BLŪ, which is currently 12 percent sold, 15 to 17 more must be sold before April move-ins. Solution: economic stimulus sales! (Or just giving up and going rental instead.) But according to the SF Business Times, pre-sale requirements are even higher now, with banks demanding 50 percent pre-sold, if not 70 or 75. Desperate times for all, folks— while slashing prices across the board to move stock, BLŪ recently took a $2.5 million penthouse down to $1.8 million. At least they have a rather cheery take on it: "We are telling buyers this is a massive discount. Prices are not going to stay this way." Right. But probably not in the way you mean.

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