Signs of the townhouse market cracking

[deejayoh]

Two new listings have popped up in my RSS feed the last couple of days that are for L2 or L3-zoned properties, purchased in the last 12 months, and now back on the market without being developed.

Both are pretty clearly developers attempting to get out while they can (e.g. they are trying to sell the properties with plans/permits)
http://www.redfin.com/stingray/do/print ... id=1682838
http://www.redfin.com/stingray/do/print ... id=1680514

Based on their pricing, both are still thinking they can eke out a little bit of profit for their effort. I wish them luck. That said, these are probably the smart guys. Realizing they are the marginal builders at the end of the cost curve, they're getting out while they can.

If I am seeing two of these in the limited geographies/types of homes I am following - I have to believe there are many more on the market

Anyone find any other examples they want to share?

[deejayoh]

here are a couple more - same scenario

http://www.redfin.com/stingray/do/print ... id=1677666
http://www.redfin.com/stingray/do/print ... id=1578353
http://www.redfin.com/stingray/do/print ... id=1453084

[deejayoh]

Wow - another just popped up

http://www.redfin.com/stingray/do/print ... id=1681829

[barista]

Pardon my ignorance but what does L-2 and L-3 zoned mean? Are they any special?

[deejayoh]

Read this link

http://www.seattle.gov/dpd/static/Seatt ... 020250.pdf

[biliruben]

I was noticing this phenomenon too. Good riddance to bad rubbish.

Though I find trying to sell over-market to developers is a bit of a fools game in itself.

If the property's out there and a developer thinks they can make money on it, they'll find it. They aren't going to give their profits to you by paying over-market.

[deejayoh]

Here's another I ran across today. http://www.redfin.com/WA/Seattle/2771-5 ... ome/150307

This fool thinks they should earn $200k for holding onto the property for less than a year.

good luck

[EconE]

The builders (that actually are building out the lots) are sinking the existing TH owners underwater. I had a friend that paid 359k in '05 for one of those north of 85th Townhomes. 2BR+office 1.5 bath.

For the same price now you can get 3BR 2.5BA, Slab Granite (instead of granite tile with the wood trim strip) Gas cooking (instead of electric), nicer appliances in the kitchen and much nicer finishings in the baths.

[deejayoh]

Here's the current status of these. All but two are losers now. Check out the mark downs! an average of 15% off the original price. The guys on Spokane street have been on the market longest, yet still think they're going to make money

Click the image for a larger version.