Downtown Bellevue Condo Absorption

I have been tracking ratios and absorption rates for downtown Bellevue condos (in addition to other eastside areas) since about August of 2006. I separate out the number of new construction from resale condominiums and have seen an interesting trend in the past several months.

I have been tracking ratios and absorption rates for downtown Bellevue condos (in addition to other eastside areas) since about August of 2006. I separate out the number of new construction from resale condominiums and have seen an interesting trend in the past several months. In the $600-700k range, about 1/2 the available units are new construction. From $700-800k, about 2/3. From $800-1.1M, almost all are new construction. I find it interesting that there is so little resale inventory in these price ranges.

Even though the monthly absorption rates for $500k-$1.1M currently shows anywhere from 5 to 22 months of available inventory, most is new construction so the actual absorption rates for resale condos is considerably less. In general, buyers for new construction that is not ready for immediate occupancy may not be in the same buyer profile as those looking to purchase an existing property.

It will be interesting to see what the expected influx of new hires from Microsoft, Eddie Bauer, etc. will decide to purchase in the next 1-2 years. Will they prefer the new construction overwhelmingly or opt for the many wonderful resale complexes in the downtown Bellevue core? With the planned new waterfront park along Meydenbauer Bay, will the condominiums west of Bellevue Way become more popular due to their proximity to the planned park expansion?