Where are we in the cycle? Some experts say luxury condo market will remain ice cold in 2019
Entering 2018, Mike Pappas predicted developers would start lowering prices on luxury condos to accelerate absorption in an increasingly oversupplied market. Looking back on the past 12 months, the Keyes Company founder and CEO expects the trend to continue in 2019 as the current cycle winds down with little new construction starts this year.
“There was a lot of delivery of units in 2017 and 2018, and it will continue into 2019,” Pappas said. “There is a 15-month supply of properties that have aspirational pricing that are not going to sell. In some submarkets, it is a 30-month supply. Those motivated sellers will have to blink and bring down their prices.”