Lending requirements are putting a hardcore squeeze on developers to deliver pre-sales for their condos before they go to market— check SoMa's BL?, Millennium, Cubix, et al. The requirements are generally standing at 25 percent, meaning for a development like BL?, which is currently 12 percent sold, 15 to 17 more must be sold before April move-ins. Solution: economic stimulus sales! (Or just giving up and going rental instead.) But according to the SF Business Times, pre-sale requirements are even higher now, with banks demanding 50 percent pre-sold, if not 70 or 75. Desperate times for all, folks— while slashing prices across the board to move stock, BL? recently took a $2.5 million penthouse down to $1.8 million. At least they have a rather cheery take on it: "We are telling buyers this is a massive discount. Prices are not going to stay this way." Right. But probably not in the way you mean.
· Lenders forcing price cuts at Blu, other S.F. condo developments [SF Business Times]
· Cubix Says: Don't Forget About the Little Guy [Curbed SF]
· Condos Split With Buyers, Go for Renters [Curbed SF]
· Honeymoon's Over: Condos Desperate for Attention [Curbed SF]