Condos Feel the Pain Too - NBC Bay Area

Condos Feel the Pain Too



    The Dos and Don'ts of Good Sleep
    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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