With so much happening in the Bellevue condo and housing market, we caught up with real estate expert, Jason Foss of Real Residential, to learn more. Specializing in the acquisition, management, and representation of distinctive urban properties, Foss has over 16 years of experience.
Diving into the subject of mortgage rates and their influence on the local economic environment, Foss also explores the effects of companies embracing remote work arrangements and spotlights an innovative townhome project located in the heart of downtown Bellevue.
Mortgage rates have begun to drop. Will rates continue to decline? What do you anticipate the impact of rates declining on the local market will be?
I think the most likely scenario is that rates will continue to fall over the course of the year, but it will likely be a more gradual decline than we thought even a month or two ago, and it certainly won’t be a straight-line decline either.
We have already experienced rates popping back up after some fairly steep drops late last year thanks to stronger than anticipated economic data and inflation numbers which seemed to have flattened out as opposed to falling.
The evolution of rates through the course of the year will certainly impact demand in the market, but another major driver to keep an eye on will be the stock performance of our local tech firms such as Amazon and Microsoft. Anecdotally, we have been seeing an uptick in demand from buyers employed at Microsoft as the stock has touched all-time highs.
With many companies going either partially or fully remote it has created commercial real estate vacancies. How does this impact the condo market?
The potential impact is twofold. First, it reduces downtown office occupancy which can curtail demand for nearby housing options. Second, retail, dining, and other downtown amenities may be negatively impacted by the lack of demand from downtown office workers. To the degree those businesses close (or never open in the first place) as a result, it makes downtown a less attractive place to live.
My impression, though, is that there is no shortage of buyers who still want to live in downtown Bellevue. It is really affordability (based on both interest rates and prices) which is the most significant constraint on demand, and that is true not only for the downtown condo market but for the local real estate market as a whole.
You just launched sales at Ashwood Lane, a townhome community in close proximity to downtown Bellevue. Can you share some details?
We talk a lot about the downtown condo market because that is far and away the dominant form of for-sale housing in the downtown core. We have seen very few townhome projects developed in Bellevue (certainly in comparison with Seattle or even Kirkland). This is due in part to zoning and in part to simple economics (most of the land in the downtown core is too expensive to make low-rise housing developments viable) and single-family zoned areas are off-limits.
At a time when new construction condos are being sold in the mid $1,000/sf range (in case some cases in excess of $2,000/sf) and with the least expensive new construction single-family homes within a mile of downtown Bellevue weighing in at $4.4M, we feel like new construction townhomes are a great alternative option for downtown living.
Ashwood Lane is a community of 8 new construction townhomes, offering plans of around 2,500 sf, 3 bedrooms, 3.25 baths, an upper floor bonus room, and ground floor flex room plus 2-car garage with pricing in the mid $2M range. Conveniently located just north of NE 12th St. on 112th Ave NE, Ashwood Lane offers great walkability to downtown as well as easy access for commuting via 405 and 520. More information is available at ashwoodlaneliving.com.
