Hubbell Realty defies prognostications, starts new downtown Des Moines condo project

Hubbell Realty announced on Thursday 10/25/07 that it will convert a former transmission business into 31 condominiums priced from $145,000 - $300,000, according to a Donelle Eller of the Des Moines Register. The article quoted Hubbell spokesperson Jarad Bernstein as saying "Housing may not be selling as fast as developers like, but it's not a soft market."

Hubbell apparently believes this even though the same article cites Des Moines Area Association of Realtors stats that say days on market for downtown units has risen from 161 to 277, a whopping 72% increase, and that only 48 units were sold downtown from January to September of this year. According to DMAAR there are 352 downtown condo units on the MLS, and I'm guessing a lot more available, just not listed. Looks like there's about a 67 MONTH SUPPLY OF CONDOS DOWNTOWN BEFORE THIS PROJECT IS BUILT! There's even more competiton for buyers now that several projects have been converted to high end rentals. Wow, it takes moxie to build into a slump like that.

Just last week, Iowa Appraisal and Research Corp announced their research showed there was a three to five year supply of condo units downtown and so recommended the former 456,000 sq ft Central Campus building not be converted to condos, according to a separate Register article.

My guess is that if you've been a downtown condo sales specialist you've branched out into other areas this year, and you may have fielded a few calls from your buyers who bought before the glut wondering why the same units they bought are selling for far less. There are many very nice projects downtown and some new residents that are very happy there. Downtown does offer a unique, urbane experience that bears some resemblance to larger urban areas in the country. Quality of life is really what matters the most, and you can't put a price on that.