At the beginning of September The Potrero (451 Kansas) was reporting roughly 60% of their condos (105 units) in either contract or closed (including 85% of the north building and 33% of the south). And according to the president of their marketing company, “[w]e were aiming for 12 a month and are selling 18.”
It’s a little over three months later and The Potrero is now reporting 70% either in contract or closed (with an expected 100 closings by the end of the year). Almost all of the movement has been in the south building (50% now in contract or closed while the north building remains flat at 85%). And based on our calculations, net new sales have been running at closer to 4 condos a month since the beginning of September with roughly 50 left to sell (which might help explain the pricing on their latest release).
Two other numbers we found interesting: over 50% are first time buyers and over 90% are planning on making The Potrero their primary residence. And yes, all stats (but not the calculations) are according to the sales office.
∙ The Potrero (451 Kansas): Now 60% “Sold” And Closing Contracts [SocketSite]
∙ The Potrero (451 Kansas): Now From Under $400,000 (Just Barely) [SocketSite]
Looks like the price reduction and the incentives (2 years HOAs, plus some appliances) may have worked (somewhat) in the south building. Still, they can’t be too thrilled about the 4 condo/month rate.
I smell more reductions.
4 sales per month for a 165-unit complex – that’s a Miami-like absorption rate of about 3 1/2 years.
^ big difference between 18 and 4 but with only 50 units left that’s a year of inventory which isn’t at all unreasonable. i’d also expect a bump in activity come spring.