In my last "Spotlight on Condo Projects" I received the following comment:
"What do you think the impact on pricing will be for the condos which are on the south side of downtown & the connector. First of all, access would seem to be an issue and that area is in a little disrepair, at least at the moment. I've heard the price/sf is pretty high for condos. How is the condo market surviving now that the market has moderated for the moment?"
See the last post and comments here: Boise Homes For Sale: Spotlight on Condo Projects
My response to this comment was this:
"Thanks for the comment. Like I said, Condos aren't my area of specialty. However, in my personal opinion I think that condos downtown will continue to do well, especially if there are some built that remain affordable for all types of buyers. Condos match well with urban downtown living and people who want to be in the heart of the city and walk to everything they need, they are a good fit. They also are a good fit for business people who travel to Boise to work and have a condo as a second home for when they are here on business. We've had clients like that. There also is a market for both standard, affordable condos as well as nicely upgraded, more expensive homes. That added the to the fact that all you can do to build close to downtown is infill projects, I think condos will remain a steady and demanded form of housing downtown. On the other hand, I see a lot of condo projects going up in other areas of Boise, many of them with price points similar to the downtown condos and I wonder to myself who would be willing to buy those. I think for people who don't live downtown but also don't care for much maintenance, patio homes are a better solution for suburban living."
Because those comments were so long, I thought it was worth posting them in their own post. I also have been thinking about it some more as well. Downtown does have a lot of condo projects going on and the majority of what I have seen have been more upscale, business executive style condos with all the upgrades and a higher price tag. That demand, I believe, has certainly been fulfilled in abundance. What I think is missing more, and is also in demand, are condos for the young adult who wants to live downtown and also own their own home. Those who love the downtown lifestyle and nightlife but can't afford a home in the North End or any of these executive condos. I have been talking to some different folks about condo projects in downtown and one person who is involved with a couple of projects said that these type of lower priced condos were what they were working on. Below are the comments that she gave me on them:
16th and Bannock – New charm is being infused into a vintage building. Five charming 1- and 2- bedrooms from $130 K - $235 (400 – 1,000 square feet). Available for pre-sale now –March ’08 completion projected.
1107 Washington – On the historic registry, this sunny building is across from the YMCA and Boise High. It has only 3 private units currently serving as apartments. Upon city approval, the 1 and 2 bedrooms will sell as condos, starting at $175. The 3-bedroom penthouse will be priced in the $200K range.
If more projects like these are taken on I have no doubt that downtown condos, as long as they are near the center of the city, will continue to be a demand that needs to be fulfilled. It would be nice though for these buyers if there were things besides 400 sq.ft. homes selling in the under $150,000 range as well. I know a bunch of my clients and friends would be lining up to write a contract.
Anyone else have insight or an opinion on this?