150 Closings to Date and 200+ Pending Sales in Escrow Amidst Rising Market Trends
Three years ago today, scores of prospective homebuyers lined up around the block at the NEXUS Sales Center on the heels of groundbreaking for the much-anticipated 41-story high-rise condominium. Within a few weeks, more than 300 of the 389 units were quickly under contract. Now upon the developer, Burrard, receiving the Temporary Certificate of Occupancy in late January 2020, 93-percent of the units were presold making NEXUS Seattle’s best-selling tower. By mid-February 2020, closings began in earnest, averaging 20-30 per week totaling 150 to date. Additionally, more than 200 pending presales in escrow are scheduled for closings by May 2020 as the new homes are delivered for homebuyer move-ins.
“NEXUS is broadly viewed as Seattle’s most successful presale community in recent times and the velocity of closings demonstrates this same level of enthusiasm,” said Michael Cannon of Realogics Sotheby’s International Realty, the Sales Director for the project during the presale effort. “We were fortunate to close our sales center early in June 2018 and conclude the campaign a year later well ahead of schedule.”
Hundreds of new construction closings during the first half of 2020 will be a booster shot to the already robust housing trends exhibited in downtown Seattle. Not including NEXUS, the resale market has experienced a 22.9% increase in sales volumes year-to-date over 2019 while median home prices increased 8.5% during the same period to $649,950. The market appears to be picking up speed, notwithstanding recent events with the coronavirus pandemic. So far in March 2020, pending sales are up 15.6% and closed sales are 36.4% higher than they were during the first half of February 2020. Meanwhile, active listings are trending 32.3% lower than this time last year.
“Inventory is certainly lighter, while buyer activity is notably higher, likely in response to median home prices rising again and historically low interest rates” said Dean Jones, President and CEO of RSIR. “Given the market dynamics, we anticipate fewer new listings during the Spring sales season in 2020. We also expect some deferrals with new development launches as well. This may put further upward pressure on pricing.”
Jones notes new developments today can’t offer new inventory at the same value ranges of prior presales or existing resale prices given the rising cost of construction. Seattle’s development boom across all product types has caused annual hard cost increases upwards of 6-8% per year for the past several years.
“Developers of new condominium towers will need to charge $1,200-$1,500 per sq. ft. on average to pencil a project if preselling today,” adds Jones. “That’s easily 15-25% more than what prevailing presales were offered at just a few years ago. This may point to the kind of appreciation that’s likely for those whom secured purchase contracts in 2017 and 2018 and locked in pricing.”
- For Home Orientations and Building Tours related inquiries, please contact NEXUS Homeowner Care at homeownercare@NEXUSSeattle.com
- For Day of Closing related inquiries, please contact Brieanne Regalia at First American at email@example.com
- For all other General Questions or Sales/Financing related inquiries, please contact the NEXUS Sales Team at 206.880.8325 to Sales@NEXUSSeattle.com
Information was obtained from sources deemed reliable but cannot be guaranteed. Prospective buyers and brokers are encouraged to perform independent due-diligence on market statistics. E&OE.
New homeowners have been elated to tour their new homes at NEXUS, which has been three years in the making. Photos by Burrard and photography by Lucas Finlay: