Interest in Second Phase Development Spurs Sales; Not Homeowner Stimulus

Bellevue, WA (PRWEB) Nov. 24, 2009 New condominium sales at Bellevue’s Washington Square more than tripled in the past two months, offering the first sign buyers are coming back to the high-rise condo market in the Seattle region.

Washington Square, which has two towers of condominiums and 26 townhomes in downtown Bellevue, has suffered with the rest of the housing market due to the national recession, only selling one unit a month from January to August. From September to Nov. 1, however, sales totaled 26.

Increased sales have come since Wasatch Development, developer of Washington Square, announced preliminary plans for the second phase of the $1.2 billion, 10-acre downtown Bellevue superblock. Only one of the 26 buyers used the federal government’s first-time homebuyer credit of $8,000 to purchase a unit at Washington Square, which indicates the incentive program did not artificially inflate sales.

“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.”

Washington Square Bellevue’s First FHA Certified High Rise

Last week, Washington Square became the first high-rise condominium project in Bellevue to obtain Federal Housing Administration or FHA certification, which makes it easier for prospective buyers to get insured loans, which can carry more favorable terms. Since the recession, condominium buyers have found it difficult to buy condos because banks have been unwilling to take the risk on condos, particularly in markets with a glut of units.

To obtain FHA certification, condominium projects have to meet a stringent set of criteria. When they do, it means lenders may be more willing to give a buyer a loan and terms that make it easier for them to qualify. For instance, rather than paying 10 percent to 20 percent as a down payment, buyers can put as little as 3.5 percent down. Those seeking FHA loans also may get that down payment from family members and have a higher debt-to-income level than those required by conventional loans.

Written by Sharon Baker

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