The Peloton Surprises [Market Update]

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by Osman Parvez
---It's been a while since my last post on The Peloton.     Time for a quick update on market conditions.

First, a little reminder.    On the right side of this blog is a cloud of categories.    If you click on a link, you'll pull up all of the posts related to that topic.     For example, here's the link for all our my posts on The Peloton (including this one).

By the way, if you're shopping for a unit a the Peloton, nine condos are currently offered for sale.    This includes the ever exclusive and sparkly unit D420, a stunning high-end property offered at $1.6MM.   I was inside this unit once, during a time it wasn't officially listed, and the property is mouth watering.

Now for the update.   Let's illustrate market conditions with a chart showing the price history for unit D424.  


Like the rest of the build-out, Unit D424 was first offered at pre-construction prices.    The sales pitch: prices were likely to rise and buying during construction would get you a better deal.     Oh, and you'd get a free scooter too.  

How did the "free" scooter promotion turned out?  Ask Mr. Market

Unit D424 was first marketed with an eye-popping asking price of $744,900.       As the real estate cycle shifted and Mr. Market came to bear, the prices fell dramatically.   This summer,  nearly five years after it was first offered, this 2 bedroom unit finally sold for $441,500 - an incredible 41% below original asking.    We're talking about a difference of more than $300,000.

A couple of other never occupied 2 bedroom units also sold.    Unit C218 closed at $380,000 and unit D104 closed at $422,100, discounts of 39% and 30% from the original 2007 asking price, respectively.

The Resale Market
What about resales - i.e. previously owned units?    Here the picture brightens.  

Several 1 bedroom or loft style units sold this past summer.  Surprisingly, most of these sellers were able to obtain (slightly) more than they originally paid.  Keep in mind that these sellers acquired their units from 2008-2010, or well after prices had already fallen significantly.    

One lucky seller even managed to obtain a 10% premium from his purchase price and oddly enough, it was affordable housing (unit D105).      How did affordable housing manage to notch in a healthy gain while everyone else struggled?   You can bring that up with the City of Boulder, which regulates the resale prices of affordable housing units.

If I can be of assistance to you - please give me a call at 303.746.6896.    My goal is to help you make a smarter real estate decision.  
---Note: Our goal is to provide exceptional service to our clients. The ideas and strategies in this blog post are the opinion of the writer at the time of publication. Silver Fern Homes recommends careful and complete due diligence before buying or selling real estate or other investments. Consult with your professional advisers before making financial decisions. This article is not intended as legal, tax, or investment advice. Silver Fern Homes will not be held liable for investment choices derived from this article.