Multifamily Properties Flourish in Current Housing Market, IBS Speakers Say
Orlando, Fla.–Multifamily developers got some good news Wednesday at the International Builders’ Show, the Sarasota Herald-Tribune reports.Many non high-rise condo developers have switched to building apartments because of the changing market–but buyer traffic has increased in condo sales offices that are still open, according to Bill Donges, CEO of the Atlanta-based Lane Company.Because the condo…
Orlando, Fla.–Multifamily developers got some good news Wednesday at the International Builders’ Show, the Sarasota Herald-Tribune reports.Many non high-rise condo developers have switched to building apartments because of the changing market–but buyer traffic has increased in condo sales offices that are still open, according to Bill Donges, CEO of the Atlanta-based Lane Company.Because the condo market is fairly new in large southern cities such as Atlanta and Dallas, dealing with inventory and declined sales is something the developers aren’t used to, Donges said.”This is the time to buy,” said panelist and Orlando-based condo developer Steve Patterson.Patterson also said luxury properties actually were one of the most troubled property types. “We overbuilt the high end, and that is where the values are,” he said. “They are definitely selling for less.”As baby boomers move on from their single-family home and look for a simpler urban life with less upkeep, condos will continue to flourish, according to Patterson.Unsold inventory is still an issue for the condo sector; however, the situation is correcting itself, Donges said.”The fundamentals of the condo market are solid, but it will take 12 months to two years to burn off the supply,” said Donges, who said lifestyle developments have a better chance of selling.