AVA Officially Postponed Until Market Improves
It’s been rumored, and the Puget Sound Business Journal confirmed it. Although we’ve had several reservations made with some of our own clients, the developer doesn’t plan to break ground until the local market improves.
This is another project that has been delayed because of construction costs and lack of financing. AVA was the last project many have wanted to see postponed.
“The challenge is pre-selling too early and potentially selling a project short, only to then digest rising construction costs, ” said Jones (Dean–President and chief executive of Realogics). “Developers just can’t digest that risk and construction lenders won’t allow it either.”
Our biggest fear for the local market is when the market finally begins to turn, it does so by skyrocketing prices higher than they are now. Great for current owners, a potential tragedy for future buyers.Email