Bellevue Towers 2023 Outlook

We saw sales activity and pricing soften in the second half of 2022, and I expect that trend will likely extend through 2023: a slower pace of sales and pricing that will generally remain below peak spring pricing of 2022. Although we will probably see the typical bump in sales activity during spring, higher interest rates will likely continue to weigh on the market. At the same time, however, available inventory of homes for sale in the building will probably remain limited, barring a more significant economic downturn late in the year. Unless sellers need or want to sell for some reason (moving out of area, for example), most owners will elect to simply stay put given that they are currently locked into a very favorable low interest rate on a long-term mortgage with ample home equity.

In terms of the broader downtown condo market, Avenue Bellevue will be completing this fall. With several months remaining still to sell prior to completion, it is unclear how many unsold, move-in ready units will become available upon completion, but it will likely be in excess of 100. Meanwhile another new project, Mari, has not yet started formally selling, but is expected to be ready as early as spring/summer 2024. In this regard, we are likely to see historically high levels of relatively expensive, new construction condominium inventory in downtown Bellevue at the end of 2023 and well into 2024.