What’s the Expected Local Impact of Recent Tech Industry Layoffs?
There’s been a lot of media coverage in the last six weeks relating to local and national tech industry layoffs. The Pacific Northwest has a significant tech industry presence, not just all the major players but also many smaller but successful start-ups What impact can we expect in the Seattle and Eastside economy and housing market as a result of these layoffs?
Matthew Gardner, Windermere’s Chief Economist, doesn’t anticipate significant change as we move through 2023. Take a look at his thoughts on the local economy and housing market.
Thoughts on Bellevue’s Fall Condo Market
August tends to be a quiet month for real estate, but after the Labor Day holiday weekend, expect to see market activity pick up as we head into fall. It was a frenzied first half of the year, both nationally and locally, with a continuing shortage of existing and new construction housing inventory. The impact of two significant interest rate increases certainly caused the market to cool a bit this summer and demand declined slightly while buyers adjusted to 5%+ mortgage interest rates. (Not that an increase from 3% to 5% isn’t significant, but if you’ve been around long enough to remember, mortgage interest rates in the mid 1970s were in the mid-to-upper teens.)
There’s been a lot of talk about a housing market crash or a housing bubble. What we’re experiencing now is a normal market, and a normal market doesn’t mean buyer interest has evaporated. The Pacific Northwest is fortunate to have a strong business and economic base with companies continuing to expand, hire new employees and relocate existing employees to the area. During the height of the pandemic there was momentum to move away from the city to find space to spread out and create home school and work-from-home space. Not everyone decided to move to the country (some have chosen to move back to the city) and buyers new to the market are looking for convenience and access to employment, amenities, schools, transportation, health care, etc. Urban living is still in high demand and local sales activity supports that trend.
Over the past 90 days, here’s what’s been happening in downtown Bellevue . . .
- 45 condos sold in the last 90 days
- the median sold price was $1,175,000 (compared to $957,500 during the same period in 2021)
- 40% of those condos sold above list price
- 60% sold in 10 days or less (average days on market was 19)
Buyers are still active in the marketplace and downtown Bellevue is definitely on their radar. Multiple offers still occur but price escalations haven’t been as dramatic as seen late last year and the first half of 2022.
Downtown Bellevue (98004 zip code) currently has a 3 month supply of available condo inventory. It is a more balanced market but still slightly favors sellers. (A balanced market is considered 4-6 moths of available inventory.) New construction opportunities exist but those units, either under way or in the planning pipeline, won’t deliver homes ready for occupancy for 18-24+ months. One community, nearing completion, will add 16 new residences to Bellevue’s urban marketplace this year.
Looking at all Bellevue neighborhoods/zip codes, 146 condos sold over the last 90 days. 65% sold at or over list price with an average time on market of just 10 days. Right now there are just over 100 condos listed for sale throughout Bellevue (including downtown) or a 2.2 month supply of available inventory.
Nothing in the market data suggests home prices are declining or that we’re headed into a housing bubble or market crash. This year’s interest rate increases did have an impact on the market, and there was a moderate market correction as a result, but local condo values are expected to appreciate but at a far more normal and sustainable pace.
Summer Movies in the Park are Back
A favorite summer event, movies in the Downtown Bellevue Park, are back on Tuesday evenings beginning July 19th through August 23rd. This is a free, fun family event that always draws a big crowd. Pre-movie entertainment starts at 7:30 PM and movies start around dusk (9:00-ish).
July 19th Sing 2 Light Up the Night – bring your glowsticks
July 26th Rango Country Western Night – don’t forget your cowboy hat and boots
August 2nd Sgt. Stubby: An American Hero Military Appreciation Night – represent your favorite branch
August 9th Space Jam: A New Legacy Sports Day – wear your favorite sport/team jersey
August 16th The LEGO movie LEGO builders night – LEGO building time
August 23rd Back to the Future 80s Night – wear bright colors and bit hair
(movies will be canceled in the event of rain)
Movies are also scheduled at the Crossroads Park every Thursday evening beginning August 4th through August 25th.
Pack up the family, snacks, drinks, blankets and jackets, find your favorite spot in the park and enjoy a fun outdoor night at the movies.
For more information call 425/452-4240 or visit BellevueWA.gov/outdoor-movies
Bellevue Farmers Market Opening Day – Thursday, May 12th
Opening day for this year’s Bellevue Farmers Market is Thursday, May 12th. The market is open every Thursday from May through October from 3:00 PM to 7:00 PM. The market is located at Bellevue Presbyterian Church at 1717 Bellevue Way NE.
The market offers a mix of local vendors offering seasonal fruits & vegetables, flowers, fresh meats and artisan goods along with live music, activities for kids, tasty cuisine and community booths. Stop at the information booth for more details. Vendors accept cash, credit and debit cards.
There’s ample free parking on site. Service dogs are permitted as well as pets. Dogs must be owner controlled and kept away from food and other shoppers. Dogs who cannot mind their manners will be required to leave the market.
This is a welcome spring/summer event, even though spring weather has been a bit slow to arrive. The market is open rain or shine.
Bellevue Outdoor Movies In the Park
It’s summer and movies in the park are back! Gather family, neighbors and friends, pack a blanket, lawn chairs and snacks and head to the Downtown Park and Crossroads Park for Tuesday and Thursday night movies. A 40 foot movie screen will show movies in both locations. Seating starts at 7:30 PM and movies begin at dusk.
BELLEVUE DOWNTOWN PARK
August 10th Trolls World Tour
August 17th The Croods 2: A new Age
CROSSROADS PARK
August 12th Onward
August 19th Raya and the Last Dragon
NOTE: Movies will be cancelled in the event of rain. Movie titles are subject to change without notice.