We've written before about the Sunset Silver Lake project currently under construction. Now one of our readers writes in with news of slow sales, market jitters and cold feet (based on about 30 minutes of personal observation, hearsay and rumor - exactly the kind of real estate gossip we rely on):
Here is a report on KOR's Sunset Silverlake loft project. I have been on the wait list for that project for over a year. On the morning of October 21, I attended a "pre-construction sales event," billed as the "eagerly anticipated open house" for potential purchasers tobuy a loft now, even though occupancy is not scheduled until mid-2007. The open house at the loft site was very well-attended -- I would say well over 100 people were there during my 30 minutes at the site. All attendees were invited to the downtown KOR office later that day to sign purchase agreements.
At the downtown KOR office, there appeared to be more sales people waiting around than the 7-10 potential purchasers who showed up for the "appointment" time of 1:00 p.m. I think most showed up just to see what the prices would be. Most (but not all) of the units were priced in the 750K-900K range. During my time there (I was there also about 30 minutes), I saw no one sign any purchase agreements.
Based on subsequent conversations with the KOR sales people, "a couple" of lofts have supposedly been "reserved" from the open house (of course a real sale cannot be verified either way.) As for my own decision not to buy now, I have been spooked by the chilly housing market combined with my uncertainty about the scope and speed of Sunset Junction's gentrification. KOR has now decided to not market the lofts again until the new year, and has claimed that its released prices will "not go down."
Anyone want to take bets on that one?