Bellevue’s housing market has changed due to rising mortgage rates, limited inventory, and shifting buyer demand. In King County, homes have recently sold at asking price on average, a shift from previous years when they sold above or below list price. Higher interest rates have made buying less affordable, but a shortage of homes has kept prices stable.
West Bellevue’s condo market has grown, with sales increasing significantly in 2024, driven in part by new developments like Avenue Bellevue. Here’s what expert realtor Jason Foss shared about the latest trends and their impact on buyers and sellers today.
Are homes currently selling above, at, or below their asking prices? What factors are driving this trend?
In 2022, when mortgage rates were well below 6% until late in the year, properties sold at 102% of the list price on average in King County. Then in 2023, with rates consistently above 6% —and peaking near 8%—the ratio of sales price to list price fell to 98%. In 2024, despite rates stuck in the 6%-7% range, we saw properties in King County sell at 100% of list price on average. This shift was the result of both asking prices falling (by about 6%) and sales prices rising (by around 10%) compared to the year prior.
In a market with worsening buyer affordability thanks to elevated mortgage rates, it is intuitive that asking prices would fall. However, despite worsening affordability we have seen sales prices rise during the same period. This is largely due to the many sellers who are locked into low mortgage rates on their current properties, making them reluctant to sell. As a result, buyers have had to compete for limited inventory, driving prices up despite higher interest rates.
What can you share about condo sales and the general reception of the Avenue Bellevue development? Has the departure of retail businesses from the project had any impact on sales?
The construction lender Silverstein Capital Partners recently took control of Avenue Bellevue, with the original developer unable to cope with delayed construction, higher than expected costs, and factors like COVID and higher interest rates which negatively impacted demand. I think there will be increased interest in the property with the new ownership launching a refreshed marketing campaign, including a new sales office and selective price adjustments.
As for the retail situation, I don’t think that has been hugely impactful on sales. Homeowners at that location have no shortage of dining and shopping options, and the hotel is fully operational, which provides some great amenities as well. Having said that, vacant storefronts are not helpful, and Silverstein certainly will be making a renewed push to fill the retail. In the meantime, they converted some of the available retail spaces into galleries displaying original artworks. I would encourage anyone who hasn’t seen it to stop by. The art is available for sale and 100% of the proceeds go to the artists. The gallery spaces are open weekends noon-8pm.
How does the current real estate market compare to the same period last year in terms of activity and trends?
Sales for houses and condos combined in King County were approximately 9% higher in 2024 than in 2023. Pricing (on a per square foot basis) rose 8% over the same period. If we focus on West Bellevue condos specifically, sales in 2024 increased by more than 50% when compared with 2023.
Meanwhile, pricing rose by nearly 30%. However, these figures include a substantial number of new construction presale closings both at Avenue Bellevue and Mari in 2024. If we look only at resale condos for an apples-to-apples comparison of the two years, sales increased by 15% while pricing remained essentially unchanged.
Bellevue’s housing market is changing, with home prices, availability, and buyer demand all shifting. For more insights and expert guidance, visit Jason Foss at https://www.jasonfossproperties.com.
