The upper end saw the return of the Jumbo Loan in March and that market saw volumes pick up. Some outstanding values were obtained with new homes over a $1,000,000 sale prices going for under the cost of construction without the land or financing cost. In Bellevue we saw a big pick up in sales volumes and more buyers entered the market in July as they had a good selection and the feeling the free fall in pricing was over.  However the big story as we close out the year is that pricing remains stuck. Effectively on a per sq. ft. basis it remains in a “trading range”.  In fact as the new construction inventory becomes depleted the averages are starting to fall again. The new construction homes tend to sell for a higher average price than the resales and pull the averages up overall. The best place to look for true pricing is to check the per. sq. ft. price as to the average home sale price.  The per sq. ft. price tends to show an overall average better indication of what a buyer will pay for a home in a particular area whether new or resale. A review of the Altos stats will show that pricing remains soft and the buyer is focused on value and is very discretionary. They will buy but only if the price is right. So what is in store for 2010?  Tomorrow I will identify what I think the big trends are that will effect 2010.

The popular theory presently is that the number of NTS and foreclosures would rise as people who drained their resources trying to hang on eventually would have to throw in the towel. That may have been the case but the recent last three months of sales might have kept this inventory in check. The economy is not creating many jobs but the unemployment rate in the Seattle appears to have stabilized around 8%. If unemployment remains stable then at some point in time these personal situations will get resolved. The future looks dismal though for any growth. The main political initiatives nationally are focusing on health care and green house emissions. The present approaches to both of these issues appear to have employers shouldering most of the cost for these programs so there will be even more incentives to “downsize” and put even more pressure to cut cost to offset these new expenses. In addition the direct subsidies for the economy provided by the Federal Reserve are being scaled back. This has all the looks of a “muddle”.

While I avoid making predictions I suspect we will see decreased sales volumes in East Bellevue but also a gradual reduction in inventories as sellers who have the option take their ball and go home as the see very little upward pressure on pricing. Fortunately given the mature demographics and overall conservative nature of the East Bellevue home owner this is the vast majority of the ownership profile. East Bellevue is a mature neighborhood in a great location. Neighborhoods like West Bellevue experienced a bunch of near do wells that were looking for the prestige of West Bellevue and could get in the neighborhood because of cheap money. As an example in West Bellevue in the 98004 zip code there are 21 foreclosed homes. Compare this to the 98005 zip code with roughly the same population you have only 7 homes and in all three zip codes 98005, 98007 and 98008 there are only 27 foreclosed homes. This combination of mature ownership, affordable pricing and excellent location to jobs, schools and services also means that the foreclosed and short sale homes have a much better chance of selling. I will talk more in the coming weeks about these demographics and overall neighborhood trends. Also I am considering expanding the “Distressed Inventory Report” to include the 98004 and 98006 zip codes if there is any interest in that please let me know.

Click on the link for the spreadsheet. East Bellevue Foreclosure Report 10-3-09

In addition there are sections dealing with community amenities such as parks and schools. Both the recreational and educational amenities in East Bellevue are abundant. Most neighborhoods have a community park with playfields and recreational equipment within walking distance. The educational choices, both public and private, are outstanding. You have one of the best schools in the nation, Bellevue’s International School, located in East Bellevue. The choices for private schooling ranges from faith based institutions to Montessori.

The blog will provide commentary on the market, land use and the different neighborhoods. If you have an interesting story or neighborhood function please contact me.

I feel that East Bellevue is a unique area in the country. Nowhere else have I seen the job, recreation and educational opportunities available to a family supported by a well developed municipal infrastructure of parks, public safety, transportation and services. The fact that the homes are relatively affordable to the median income for Bellevue is even more rare when compared to other communities around the country. I look forward to supporting the East Bellevue community and being a resource regarding the real estate activity, neighborhoods and overall community.