In a recent statement, condominium development Washington Square announced that sales have tripled within the past 2 months. From January through August Washington Square sold 1 unit per month. From September to Nov. 1 Washington Square’s sales totaled 26. The homes that were sold ranged from $400,000 to $1 million. With the new sales it brings the total sold in Washington Square’s 2 towers to 210 out of 353 condominiums.
The developer in the statement also made a point to communicate that only 1 of the 26 condo buyers used the federal government’s first-time home buyer credit to purchase, showing that incentive programs were not to credit for the increase in sales.
Washington Square recently became the first high-rise condominium project in Bellevue to obtain Federal Housing Administration (FHA) certification. This makes it easier for potential homebuyers to get insured loans with better terms. With the economic downturn in the economy it is not as easy as it once was to obtain a loan. Lenders are not taking the same risks that they once were. When a project obtains FHA certification, lenders are more willing to give a buyer a loan with less money down.
“Confidence in condos is coming back,” said Mike Nielson, chief operating officer for Washington Square. “Since September 1, we’ve sold 26 units. Last year during the same period, we sold one. Now with Fannie Mae and FHA approval, we’re seen as a safer product, banks can make favorable loans and buyers can now purchase with as little as 3.5 percent down.”
