Capitol Hill fared reasonable well. Though the median price dipped slightly compared to a year ago, down 1.7%, more units moved resulting in increases in both pending and closed transactions. The market in other in-city neighborhoods continued to struggle with under performing sales volume and declining values.

The number of active condo listings last month increased slightly over December, up 38 listings or 3.3%. Though, compared to January of last year, active listings were down 9.4%. The economy and further softening of Seattle’s real estate market are likely keeping sellers on the sidelines, either holding out as long as they can or renting their units instead.

The citywide condo inventory supply rate (absorption rate) decreased to 7.8 months in last month based on pending transactions. Although Seattle remains a buyers market, the rate has been trending back towards balanced market conditions. North of the ship canal, the condo supply is commensurate with last year’s rate; Capitol Hill’s rate is lower than it was a year ago.

While pending transactions (condo units going under contract) remained below last year’s level (-20.2%), there was a 22% increase in the number of pending transactions last month compared to December. Historically, January sales volume outpaces December, so we’d expect these results. Yet, it is a positive signal that even with the current economy crisis people are buying real estate… the number of pending condo transactions increased for the second consecutive month.

By all accounts 2009 looks rather bleak. The seemingly endless reports of layoffs, mortgage defaults and tightening mortgage guidelines will impact the region’s housing market. Foreclosures and outbound migration could result in higher inventory levels. Yet, there are opportunities that could spur market activity.

• One of three things will probably come out of the stimulus bill – a repeal of the payback component of the existing $7,500 first-time buyers tax credit (House version), a $15,000 tax credit which isn’t limited to first-time buyers (Senate version), or something in between.
• Fannie Mae just reversed its 4-property limit investor restriction and are now allowing loans for up to 10 financed properties.
• Mortgage rates remain historically low even when factoring in the .75% condo fee and more properties are receiving HUD/FHA approval.
• Continued value depreciation in most neighborhoods makes condo ownership more attractive.

The presentation center is located at the Skyline Tower at 10900 NE 4th Street, Suite 1510 in Bellevue.

Bellevue’s Essex on the Park (website) announced they have released an initial set of homes available for reservations. The initial release will include just 16 condominium homes with the remainder being held back until completion in 2010. Essex will be hosting special design preview events on April 8th, 9th and 10th for individuals who previously registered on their website.

Essex will rise just 9-stories featuring 32 two- and three-bedroom homes that range in size from 1,100 to 2,700 sq ft. Prices for Essex homes start from $800,000 and will likely top more than $3,000,000.

In addition, Bellevue Towers is offering a limited-time rate lock promotion. For homes purchased in March and April they’ll lock interest rates for free. Alternatively, buyers can apply the rate lock cost (approximately 1% of the purchase price) to buy down rates or apply it to closing costs.

Bellevue Towers report they just poured the 38th floor and expect to top off the project in another two months.

Illustration of Bellevue Towers’ roof top Urban Garden designed by Walker-Macy.

With that said, however, recent events and the state of the condo market are on the minds of developers. R.C. Hedreen, Olive 8’s developer, is ensuring that buyers in Seattle’s tallest residential tower receive the lowest price possible as the market continues to fluctuate by offering a price guarantee to new buyers. Should the same floor-plan within Olive 8‘s remaining inventory sells for less than the current price prior to closing, the buyers who contracted for a higher price home will benefit at closing with the equivalent discount to their price.

Acccording to David Thyer, president of R.C. Hedreen, the Olive 8 homes are attracting a great deal of attention and interest, but “We recognize the housing market hesitancy and feel that this guarantee will help shore the confidence of those who are on-the-fence. Buying now offers the best selection and the assurance that they are getting a great value.”

Latest rendering:

Previous rendering:

The 440 foot-tower will feature a hotel on the lower 14 levels and 168 loft homes on the upper 14 levels.

The concept is based on a 600 sq ft open one-bedroom design with an 18′ ceiling height. Buyers may elect to customize the base units with a 2nd mezzanine/loft-level that’ll reconfigure the unit to a formal one-bedroom plus den and two bathrooms. With the mezzanine/loft level, livable space is increased by nearly 50%. Buyers will also have the option to combine units creating larger living spaces. The mezzanine/loft level can either be included as an upgrade at purchase or added at a future date.

The main level layout is fairly similar to the 600 sq ft open one-bedroom units at The Gallery, except the kitchen does not extend as far into the living room area. All homes will come with an unfinished mezzanine level that covers the bath and part of the bedroom.

Interiors will feature floor-to-ceiling windows, exposed concrete columns, exposed metal ducts, solid surface floors and stainless steel appliances. The units are being designed to allow owners considerable interior personalization options. The building will be topped with a rooftop terrace and bar.

Homes are expected to start from the low-$400,000s to more than $1 million. The project is anticipating first occupancy in 2011 and expects to begin construction in late 2008 or early 2009. A sales presentation center will likely open by next summer.

Stewart + Minor is being developed by GIS Intenational and designed by Collins-Woerman. GIS International is currently developing Bellevue’s exclusive European Tower condominium.

So what’s that 40-Story building behind Stewart + Minor? It’ll be the 440′ Kinects apartment building at 1823 Minor Ave being developed by Security Properties. However, based on preliminary plans, Stewart & Minor units do not face the Kinects building, thus there shouldn’t be any blocked views.

Kinects will feature 316 units in a bowed out design that will be wider at the top. On three sides the building, units will have a 6-inch slope in the interior curtain wall from the floor to ceiling. A lap pool is planned for the roof. Construction is expected to start in 2008.

AVA Condominium (website) began early VIP preview and reservation events in mid-September. Presently, all of AVA’s six scheduled preview events are fully booked. For information on future events, please register on the AVA website. Homes may be reserved during the preview events with a $10,000 refundable deposit.

AVA is Seattle’s latest luxury condominium project featuring a 190-room hotel and 200+ condominium homes which are being offered from the $400,000s to $5 million. In addition to traditional condominium homes, AVA also features ten unique two-level townhomes.

Amenities and features include:

• Sleek glass and steel design
• Outdoor heated swimming pool
• SkyLounge
• Fitness Center and Spa
• A signature restaurant
• Business center with secretarial services
• Meeting and conference rooms
• Separate hotel and residential lobbies
• Residential entrances on two sides of the building, including a port cochere
• Close to downtown’s retail & theatre districts

With the first release, AVA is offering 82 homes on 12 levels from the 17th floor up to the 36th floor. Homes include a variety of floor plans and sizes from a 542 sq ft studio (similar to an open one-bedroom) to a 1,865 sq ft two-bedroom + den & solarium.

A $10,000 refundable deposit is required to hold a reservation and a 5% earnest money deposit will be due at purchase and sale. A timeline has not yet been provided for the purchase and sale. Additionally, there is expected to be clause restricting re-sale within a specified time period, likely 12 months of closing.

The project will begin construction in early 2008 with a 2010 completion date.

For additional information including floor plates, floor plans and renderings, visit the AVA design workbook. Please read our “first look” AVA Condo posting.

Designed by Weber+Thompson, AVA is being developed by the locally-based FANA Group of Companies and Vancouver, BC-based Executive Group. Both firms have experience in developing and managing condominiums and hotels.

Boosted by considerable interest in the City Suites, individually-owned condo units available for rental through the hotel, the developer is reconfiguring the design by replacing three floors of traditional condo units with City Suites. As a result, there will only be 51 traditional condo units, a reduction of 47 units. The developer feels there is a demand for these unique homes as 100 of the 110 available City Suites have been reserved so far, ranging from $500,000 to $1.4 million. (Update: with the reconfiguration there will be 176 City Suites on floors 9 through 16).

Other changes include relocating a two-level restaurant to the SW corner at Second Ave & Pine St. The new Stephen Hansen restaurant will feature seafood and organic fare from local sustainable farms.

The Max Condominium will begin sales this coming weekend with a special VIP preview and sales event on Saturday, September 8th from 11 AM to 6 PM. The public grand opening is Sunday, September 9th from 11 AM to 6 PM.

Bellevue Towers – downtown Bellevue

Bellevue Towers Condominium announced they have begun pre-sale of the South tower homes to early registered buyers. The public release of the 1st phase of South tower homes is scheduled for September 21st. Approximately 1/3 of the homes will be available during the initial release phase.

European Tower – downtown Bellevue

Perhaps Bellevue’s most exclusive development, European Tower, has opened their presentation gallery at 400 108th Avenue NE. Viewing is by appointment, please contact your agent to schedule a viewing.

Live Historic – Pioneer Square

Live Historic, the development firm behind Queen’s Court, the Pittsburgh, the Nord and the Betsy Ross, invites prospective buyers to their open house at the Nord (312 1st Ave) during the Pioneer Square First Thursday Art Walk on September 6th.