NoMa fact check
NoMa sent the following mass email out exclaiming “Closeout Pricing” and claiming they have the best prices in Ballard for new two-bedroom condo homes and to compare their prices with two other new developments. So, I figured it’s fair game to take them up on their comparison suggestion.
It is true they recently reduced prices (mid-August), rather signficantly, between $20,000 to $80,000. But their claim regarding one of the other projects, Canal Station, is not accurate. Canal Station has several two-bedroom units that match NoMa’s price levels, between $399,990 and $489,990. It’s also a little disingenuous to state $399,990 is “NOW” upper $300s since a measly $11 separates it from the “WAS” low $400s. Finally, not all of NoMa’s two-bedrooms include a den as implied in the email ad.
Let’s look as some of those NoMa units a bit more closely, again, fair game. Unit #503 originally came on the market 625 days ago at $499,950, then two price increases followed taking it up to $544,950. But in the past three months, it was decreased to $519,950, increased to $529,950, then down again to $489,990. Currently listed at $489,990…after 625 days it’s a net reduction of only $10,000 from the original list price. Not quite what I’d call a close out.
Unit #204 is currently on the market at $449,990 which reflects a recent $80,000 reduction. However, it’s been on the market for 734 days, originally starting at $519,950, rising to $539,950 at one point, then hanging out at $529,950 for 11 months before the adjustment to $449,990 last month. This unit comes with two decks and with the $80K decrease is among the lowest priced new-construction two-bedrooms in the area.
Unit #303 came on the market some 590 days ago at $479,950 followed by two increases taking it to $514,950. It was eventually reduced $80,000 last month. Currently listed at $439,990, it’s a net reduction of $40,000 after nearly 600 days, yet compares favorably to other two-bedrooms in the area.
Unit #302 was listed approximately 613 days ago at $469,950. During that time it increased to $499,950 followed by two reductions last month that brought the list price down to $429,990. That’s a $70,000 reduction, not the $80,000 as claimed in the listing remarks. And, since 2006, only a $40,000 net decrease, but still a fair value in comparison.
Unit #415 came on the market more than 700 days ago with an original list price of $419,950. The price was subsequently increased to $454,950 before three reductions eventually brought it down to $399,990 last month. In over 700 days, the net reduction amounts to only $20,000 from the original list price.
Nice research. This building (NOMA) is repsonsible for much of the hate all condo developers get in Ballard. It was under construction for eternity (frequently with no activity on site whatsoever) and looks hideous.
While your assessment is dead on in regards to the pricing 2 years ago compared to todays pricing, would it not be fair to consider that, just maybe, since many of these homes were first listed, prices happened to increase in all of Ballard, specifically at the peak of the market, 18 months ago??
It is common, especially in a strong market, that you see prices increase in a condo project as homes sell. Simple supply and demand.
Currently, NoMa represents the best opportunity in Ballard. The developers goal is to sell these last 7 homes by the end of the year. If your willing to submit an offer, the seller is willing to negotiate.
If anyone wants to know why NoMa had a construction delay, I would be happy to elaborate. Just call me at 206.903.0441. FYI, it had to do more with the developer more focused on quality, rather then timing the completion in the hot market. Building a quality building, using quality sub-contractors, was more important at the time than sacrificing that quality simply for the bottom line.
We also were very strict on our investment cap as well, unlike some of the other communities, that have had to compete with numerous resales resulting in their desire to sell as many units as possible, regardless of the problems caused down the road. For that reason, we still have investment opportunities as well.
We will put our money where our mouth is. 2 bedroom plus dens starting at $389,990 with a $20,000 buyer bonus. MLS listing # 28160825, and Real Estate Show flyer http://www.realestateshows.com/flyer.php?id=341064
Mike – Thanks for dropping by. For readers, since this was posted NoMa did take another sizable price decrease on its remaining units, which now makes NoMa the best value in Ballard for new construction two-bedrooms.
I toured the remaining inventory last week and they were nicely done. While my personal preference favors Canal Station over NoMa, most of the people on tour with me gave NoMa the thumbs up for better quality finishes and materials.
True, the market had allowed the developer to fluctuate prices during the course of development. The fact remains though, after having unsold units languish on market for more than 2 years, regardless of market conditions in the interim, the net price drops were negligible. My comments were in reference to the “Closeout Pricing” tag in the ad, among other inaccuracies.
If anyone stumbles across this post at this late date, the website currently states that NoMa is all sold out.