Not suprisingly, condo conversions are slowing in the Phoenix area. 12 - 18 months ago, it seemed like there was a condo conversion happening on every corner. I recall a client I was showing some conversions to saying, "who is going to buy all these things?"
And he was right. Developers flooded the market and now there are too many. Nice units in certain parts of town still sell well. Slashed prices are not uncommon in other parts of town.
Condo conversions slow down in city
Luci Scott
The Arizona Republic
Jul. 8, 2006 12:00 AM
Buying apartment complexes for conversion to condominiums had been a hot trend, but developers have discovered the idea is no longer a ticket to quick riches.
Signs of slow activity in condo sales are evident at several Chandler complexes.
The most successful conversion was the first: the Lakeshore at Andersen Springs, owned by Chicago developer Robert Sheridan, who spent $2.75 million in upgrades. That complex is 82 percent sold out.
Because condo sales aren't sizzling as they were during the hot market of 2005, Sheridan has no other conversions under way in metro Phoenix. But he plans to pick up some conversion projects he expects to fail next year because the owners either won't make enough sales or won't get a public report from the state Department of Real Estate. A public report is a document required in every conversion that shows the state that the developer is following procedure and tells the prospective buyers about the neighborhood.
Full story: http://www.azcentral.com/community/chandler/articles/0708cr-condo0708Z6.html
LOL - The same has happened here in Jacksonville. I think every apt. that could convert has already done so and the market is FLOODED with condos. Buyers are getting pretty good deals now but all those poor investors who didn't sell in time are sitting with empty rentals that they can't rent or sell.