A Closer Look at the Condo Market Downtown
columbushomesblog.com wrote
What’s Up Downtown?
May 11th, 2007
by Joe Peffer
Downtown Condos aren’t flying off the shelf like much of the mainstream media seem to have portrayed, but they are slowly selling. What’s currently active on the market? About 141 properties representing just over 50 Million in list price, not even counting the FSB builders like North Bank.
I’m always surprised at the perception of who is buying downtown vs. the reality. It’s not all young professionals like many assume. There are far more empty nesters than most people think. Much of that is a result of the high costs of buying downtown. Affordable means something different to everyone but, for the most part, the youngsters are finding the affordable too small. Maybe they aren’t buying the whole, “Downtown is my back yard” mentality.
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Related Tags: condos • downtown • joe peffer
May 14th, 2007 at 1:05 am
This would seem to re-enforce what I guessed earlier, that the condos that sell are either in the Arena District or that section of downtown a few blocks east of High and north of Broad since they are where most of the urban activity is going on (and of course, it doesn’t hurt that most condo projects are going up there). At the same time, if half of those condos that are currently in contract in southern downtown become sales it’d be nice to see, even though there’s not much nearby these places. I’d say that these sporadic developments are an example of why these developers should work together to build up a street which would much more likely benefit all those involved instead of going solo in remote islands of downtown which are just going to be a tougher sell.
May 14th, 2007 at 8:18 pm
Have to agree Columbusite. Not to mention a concentrated development would be better for downtown, and should be an easier sell. The problem is attaining the property to make this happen.
May 15th, 2007 at 12:18 am
True, getting a large enough stretch of land that’s (mostly) uninterrupted can be an obstacle. Which reminds me, I think I recall seeing a large surface lot off of 4th near Spring for sale…though I could be off.
May 15th, 2007 at 9:57 am
There are many good options available for people considering a move towards downtown. If we didnt have German, Victorian, Italian, Harrison West, etc to choose from, buying a downtown condo would be the obvious choice.
With so many nice neighborhoods, reasons to move downtown have to be that much more compelling to attract people.
May 15th, 2007 at 11:45 am
Not sure if I’ve seen a lof of the media inflating the speed at which downtown condos are selling. I have seen the media discussing the revitalization of downtown through housing, dog parks, small businesses, street landscaping, and transportation initiatives. Perhaps they’re out there and if so, the article would be right on that count.
Condos have not been “flying off the shelf” so to speak, but they’re not sitting dormant for months on end either (as the artcle lightly suggests).
Unfortunately, the real estate as a whole has been suffering for more than the past 18 mos - slowing sales in every housing market (from urban to suburban). Higher mortgage interest rates, increasing expenses (gas, c. cards, etc.), are significant contributors. And the comments made in this thread are also correct in that location, availability, amenities, and variety are also contributors.
141 units still on the market is certainly do not constitute a desolate downtown market. Most of the condo projects with units for sale are well underway to filling their units with owners who have closed already (printed in the Dispatch weekly), owners who are going to close shortly, and renters (which is becoming very popular). Of those units that are “left”, these are sprinkled throughout all the projects downtown and are simply awaiting the right fit before selling, much like our suburban homes on the market.
The article did hit the nail on the head in terms of the type of residents that are moving downtown. Young professionals are, in fact, the target market for this movement because they may represent a potential longevity and play an active role in supporting downtown nightlife. Unfortunately, many of these YPs are currently priced out of the market. Empty nesters constitute a large number of these downtown residents and it makes us wonder.. how are we catering to these individuals?
May 15th, 2007 at 5:20 pm
I think a lot of the problem with the slowdown of condos selling downtown is the people that want to move downtown are having problems selling their properties in the suburbs first.
May 16th, 2007 at 8:38 am
BINGO!
My house out in Reynoldsburg is finally in contract some 130 days later…some four months after thinking it an acceptable idea to move downtown without having sold my house yet. But damn do I love my apartment on Park Street, even if I’m seeing units in the Dakota in my price range available…I think I’ll stay put for another year before thinking about buying again.
Victorian Gate also has some affordable units available in an area I love…but those generic carpet and drywall places give me the heebiejeebies.
May 16th, 2007 at 9:33 pm
you do get an amount to finish the units with at VG that ranges from 6400 - $13,900 per unit, which isnt that much as hw floors can be 10 per sqf, so you might have enough for granite, sink, and maybe some lighting.