The Seattle Condo Blog

Farren West is the owner of Key Inspection Services and is a contributor to the Seattle Condo Blog.

Many people feel there isn’t a need to inspect new construction because the home has been “Code” inspected by the city. And, to a certain degree this inspection could be accurate but here’s my take as a home inspector and as a potential buyer.

As a buyer, purchasing a home and scheduling a move is stressful enough without having to worry about potential structural issues. The cost of a new construction home inspection runs with median home prices in the Puget Sound area. So, with a median price around $400,000, a new home inspection runs approximately $400 (condos inspections are generally priced lower than single family homes). Thus, you’ll gain additional peace of mind for roughly a tenth of a percent of the price of the property for an inspection.

Now here’s my impression as an inspector. I have been inspecting properties for over 8 years and haven’t found a single one without a problem. Small or large, most need some sort of attention to prevent a safety hazard or a potentially significant financial investment if not tended to in a timely manner. With new construction a list of corrections can be just that, a simple punch list with photos to assist the buyer and contractor to ensure all details were corrected by the time of the final walk through. Also, since the home is new, systems and appliances haven’t been thoroughly tested or used to ensure they’re functioning properly before you move in.

Here’s a sample list of items that would be tested during the inspection: run water throughout in the home, flushing toilets, test appliances for proper installation & function, test the furnace and heat distribution, the fireplaces, review in the attic/roof and crawlspace areas (single family homes).

If you have any questions, or if you’d like to view a sample new construction report, feel free to contact me.

April’s performance figures released by the NWMLS exhibited further softening of Seattle’s condo market. The median price for Seattle condos (citywide) was $312,500, a .8% decrease from a year ago and a 5.3% decrease from March’s record high of $329,975.

The available condo inventory rose to 1,572 active listings April. Combined with slower sales activity the citywide inventory supply rate climbed to 7.2 months based on pending sales, which is the highest level we’ve seen in years.

An inventory supply rate based on closed sales is also commonly used. In that case, the citywide supply would stand at 4.2 months. I prefer using pending sales as it reflects the most current sales activity whereas closed sales reflect purchase activity that may have occurred up to 2 or more months in the past (e.g. closed sales in April likely went under contract in March and February).

I’ll post the graphs and charts later.

Another Belltown condo project
The Schuster Group, developer of Mosler Lofts, purchased the site just south of the Bellora according to the DJC. Earlier proposals for the site included a mid-rise apartment and condo projects. At one point one of the proposed projects was called “Bellora 2″.

Schuster’s current plans for the site is a “green” condo project which is zoned to 125′ for residential buildings. No time frame has been provided.

Insignia Towers
The DJC also reported that construction of the Insignia Towers project at 5th between Bell & Battery has been postponed, possibly until 2009. Insignia’s developer, Embassy Development, attributed the sluggish market for their decision.

Escala
As was widely reported earlier this week, Escala announced they’re increasing the prices of their remaining inventory. While the overall adjustment reflects a net increase, sources indicate that they also reduced prices on some of the units the east side of the building.

Olive 8 held a hard hat tour event at the construction site today to show off the building’s progress (I had a prior commitment and was unable to attend). Fortunately, Megan Hilfer of Parsons PR, was kind enough to share a few photos from the event which I’ve posted below.

When completed, Olive 8 will be the tallest residential tower in Seattle and the first condo/hotel development in Seattle to achieve LEED certification. The Hyatt hotel is expected to open at the end of the year while the first occupancy of the condominium is anticipated for early 2009.

The City’s Edge Condominiums (website) is a new, gated conversion community nestled within 4-acres of protected greenbelt just 7 miles from downtown Seattle.

The development features 45 condominiums in 7 buildings which consists of 17 one-bedroom, 23 two-bedroom and 5 three-bedroom homes. Most of the homes are corner units that range in size from 481 square feet to 1,574 square feet.

Home amenities and features include:

• spacious floor plans
• brushed nickel hardware
• modern finishes
• stainless appliances
• granite countertops
• full-size washer and dryer
• private garages (for all but three units)

City’s Edge homes start from $150,000 and range up to just under $400,000 for the three-bedroom units.

The sales office is open Thursday - Monday from Noon to 5:00 PM at 11801 Ambaum Blvd SW, Burien.

Clise Properties has taken its 13-acres in Denny Triangle off the market due to the global credit market downturn. Clise received 15 offers and conducted 60 tours with the most serious offer coming from a Dubai-based real estate development company.

Clise is expected to put the properties back on the market once the financial markets improve.

More info: SeattlePI and Seattle Times

The Montage (website) is the newest condominium addition to the Pike/Pine corridor on Capitol Hill. The 6-story, 23-unit building is located at 1422 Boylston Avenue, just around the corner from the HoneyHole.

Montage includes a mix of open one-bedroom, one- and two-bedroom homes ranging in size from 661 to 1,121 square feet. Homes on the “Terrace” level have expansive decks that range up to 375 square feet, providing excellent outdoor living/entertainment space.

Home prices begin at $340,000 for one-bedrooms and range up to $690,000 for a two-bedroom penthouse unit.

Home features include:

• Stainless steel Bosch and Kenmore Pro appliances, gas range
• Cherry or walnut hardwoods and carpet flooring
• Slab quartz and granite countertops
• Gas fireplace
• Parking & storage
• Pet friendly
• Roof top deck
• BUILT Smart construction

Montage’s interior finishes appear above average for this price point on the Hill. Unlike larger developments, Montage does lack somewhat with common amenities. However, homeowners will be in the center of Capitol Hill’s urban flavor - restaurants, cafes, street side retail and boutique stores, pubs, a QFC a block away and close to major bus routes.

Also: Read Matt’s impression of the project.

Last month’s market performance figures reflected continued confidence in Seattle’s condo market. The city-wide condo median price rose to a high of $329,975, a 4.1% increase over the same period last year, reversing a two month slide. The condo inventory supply, or absorption rate, decreased for the second consecutive month while the number of sales continues to improve.

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As previously mentioned, there has been a few changes occurring with the Stadium Lofts project. Since its initial debut Stadium Lofts has been through a redesign and acquired a new lead developer, Barrientos, which has resulted in delays.

Recently, Stadium Lofts announced that they retained the architectural firm of Weinstein A|U to revisit every detail of the project. Weinstein’s other noted Seattle projects include the Banner Building, Agnes Lofts and the Bernard.

Stadium Lofts will be hosting a focus group event later this Spring to unveil its new design concept. More info to come.

With attention focused on Seattle and Bellevue’s condominium boom, Tacoma’s downtown district has quietly undergone its own residential revival with a number of new condo developments. Not surprisingly, several of Tacoma’s condo developments rival those found in Seattle in terms of luxury, styling and price tag.

To show off these new developments, Bonneville International (KIRO and KTTH radio) is hosting the Tacoma Condo Tour on the weekend of April 19th and 20th. The tour includes 12 new condominium projects and begins at 10:00 AM from the Greater Tacoma Trade and Convention Center. Additionally, seminars will be held throughout both days at the convention center covering a myriad of topics including Tacoma’s tax abatement program, condo financing info, interior design, the arts scene and the history of Tacoma’s downtown.

The properties on tour include:

• The Marcato
• Metro City Homes
• City Steps
• McCarver Village
• The Esplanade
• Point Ruston
• The Commencement
• Stadium 302
• Granville
• The Walker
• 505 Broadway
• The Roberson at Ledger Square

www.TacomaCondoTour.com