OK, we can all debate whether the real estate market is really on the mend or not and whether home prices have finally stopped falling.
But one thing is clear: The once-untouchable downtown condo market appears to be in big trouble.
Now maybe I have just been in denial, but the woes of a luxury condo buyers and developers have mostly failed to impress me. Especially when compared to the misery many foreclosure-riddled urban neighborhoods, in Boston and across the state, have been experiencing.
But regardless of whether the signs of recovery we are seeing are real or just a temporary government-financed bounce, the downtown condo market is not enjoying the same uptick.
Downtown condo sales actually fell in the first six months of 2009, according to the PrimeTime Urban Report, which I detailed in my weekly column for Banker & Tradesman.
The report, which looked at 13 new downtown projects including the Clarendon, 45 Province Street, Harrison Lofts and FP3, found each development managing to ink just 1.03 sales per month.
That’s down from last year’s already anemic showing of 1.2 sales a month per project – a performance that included last fall’s virtual sales freeze after the global financial market meltdown.
So here’s a sobering stat.
The 13 projects have 558 units still left on the market. (And that does not the W Boston, which will soon dump another big batch of unsold units on the market.)
At the current pace, the report’s authors estimate, it will take 100 months to clear out this inventory.
That’s more than eight years, or nearly a decade.
Good luck with that.
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