There’s this condo under construction a little ways from my house. One afternoon, I stopped by the sales office curious as to what the units were selling for. Long story short: More than they were worth. But they finagled my email address out of me in exchange for some refreshments. So now I get this ALL-CAPS EMAIL from them yesterday:
SAVE THE DATE — THURSDAY, DECEMBER 13–5:00–8:00 PM — REFRESHMENTS WILL BE SERVEDFINAL RELEASE YEAR-END SALES EVENT — AND YOU’RE INVITED!GREAT UNITS WITH BALCONIES AND VIEWS THAT ROCK HAVE BEEN RELEASED! IF YOU VISITED OUR SALES CENTER IN THE PAST AND THE UNIT YOU WANTED WAS SOLD, THEN THIS IS YOUR CHANCE!WE’VE TARGETED 10 MORE SALES BY YEAR END FOR THIS EXCITING PROPERTY — AND HAVE FIVE TO GO — TO REACH OUR GOAL, WE’RE OFFERING SPECIAL INCENTIVES THROUGH 12.31TALK ABOUT A WIN-WIN — WE HIT OUR SALES TARGET OF 10 NEW CONTRACTS BY YEAR END — AND YOU GET A GREAT DEAL ON A SPECTACULAR CONDO!
This all kind of smacks of desperation, eh? Meanwhile, I hadn’t realized you could unbuy a condo you’d already bought from a developer, but the only sense I can make out of the claim that “if you visited our sales center in the past and the unit you wanted was sold, then this is your chance” is that people have done just that. My understanding of the data is that central city areas have been weathering the shitpile’s collapse much better than have the fringes (basically, when prices fall, the demand pattern collapses inward toward the center and its people who owned in the rim who are really left holding the bag) but it’s hard for new developments everywhere, especially ones like this one that are too far along to convert into rentals.
Either way, there’s no call for this much capitalization.