Today's Market Commentary From the Field

photo (9).JPG

by Rich Bergdahl
 

WEST BELLEVUE & SOUTH KIRKLAND 'TEAR-DOWNS'

Builders currently are having an extremely difficult time acquiring buildable parcels ('tear-downs') in west Bellevue and south Kirkland.

Since January 1st, we have experienced many non-builders/investors out bidding builders on such listings with the desire to only hold on to the property and speculate they will be able to simply sell it for much more in its present condition in a couple of years. Presumably, to the same builders?

Interesting, definitely. Disturbing, quite possibly.

This dynamic started in Vancouver BC over fifteen years ago and has existed in the Silicon Valley (CA) for the past 25-30 years.

Hang on. I believe there is a similar paradigm shift occurring here ... now.

In February, when showing a 1953 tear-down listed at $750,000, in Bellevue just north of Bell Square, to an investor and his builder acquaintance ... the builder asked the investor: 'What would this property sell for in Vancouver [BC] today?'

His answer: '$3.5MM.'

I have several other recent experiences that comport with this observation.

Whether a Seller, a Buyer, or neither .. this does affect you and our communities.

Does this cause you concern?

To further discuss this trend and your needs, feel free to call or email me today.

rich@redB.com    /    206.910.6752