A Canary in Bellevue for Bremerton?

A story worth reading, perhaps only because of the ripple it could create over here, is the one in Tuesday’s Seattle Times regarding condo sales in Bellevue.

Bellevue Towers, other new condo projects cutting prices

One of the major reasons the county worked to get the Harborside Condominium loan it backed restructured was because the former agreement made it difficult for the condos to be sold at market rate. The loan gets redone and soon we have a story of four, now five, condos being sold. They are going for less than originally marketed, but they’re being sold. The county never expressed an expectation that it will sell the condos for enough to pay off the entirety of the new loan. But this news out of Bellevue, while not surprising, can’t be good news over here. Those price drops in a neighborhood far more convenient to Seattle could have a ripple effect here.

There is, however, one potential piece of good news in this. From the story:

Some observers have maintained that sales will pick up soon because savvy buyers will recognize supply is limited.

After the current crop, few, if any, additional new condo projects in downtown Seattle or downtown Bellevue are scheduled for completion before 2012.

The Kitsap County loan is due in 2013. In theory there may be a window in there when prices start rising.

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