One of the early lessons for the real estate agent is that the Market (not the property seller, or agent) determines the price of a property. The market spoke, albeit softly, today at the much touted auction of units at the Park Terrace Condos, across Poplar from Overton Park. The promised absolute auction of 9 units was stopped after only 3 sales due to low bidding. Auctioneer John Roebuck proclaimed the auction done when he could not get what he thought was a reasonable opening bid for the 1 Bedroom units. The units that did sell sold for about $100,000 less than asking prices when they were recently listed.
What does mean for the Memphis condo market? Who knows? Nobody I talked to did. The low turnout and low bids seem to catch everyone off guard.
What we know for sure is that the Market did not see the value that the developers and Mr. Roebuck expected.
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What did the 3 sale for?
I have looked at the property, and really liked it…but I’m afraid to purchase because of the auction. I’m looking at a short term investment (2-3 years), resale concerns me. How are the units selling now?
Globetrotter,
Real Estate should not be looked at as a short term investment. Speculation in mortgages on highly leveraged properties is a large factor in the recent mortgage meltdown. You probably won’t find too many folks who will say that equity growth in residential properties will be better than flat for a while. I understand that sales are going well at the Park Terrace.