Real Estate Roundup

Issaquah Highlands stands as a beacon of modern living and community-centered lifestyles. Our vibrant and dynamic neighborhood has gained significant attention in recent years for its exceptional real estate opportunities and unparalleled quality of life.

With its unique blend of natural surroundings, recreational opportunities, social activities and high-quality amenities, Issaquah Highlands has become a sought-after destination for homebuyers and investors alike.

We asked two local real estate brokers how they view the current housing market in Issaquah Highlands. Here is what they said…

MATT JENSEN, Owner and broker at The Agency Northwest Real Estate

Matt Jensen says Issaquah Highlands is a highly soughtafter neighborhood, so there is always more interest in our microclimate. He explains that Issaquah Highlands is a very desirable area for newcomers due to the great schools, easy access to I-90 and opportunities for recreational activities in nature.

“We have the advantage of being in nature, yet close to bigger cities like Bellevue and Seattle,” he says. “Issaquah Highlands has been very attractive to live and work from, with shuttle systems to most major employers in the region.”

With the warmer weather approaching, he has noticed an uptick in listings and pending sales as well as more buyers scheduling showings. Looking at these activities, he anticipates a normal summer for real estate in Issaquah Highlands.

According to Matt, new construction in West Highlands has seen the most sales activity within the last six months due to the volume of available inventory. He added that condominium and residential sales were similar during this period of time.

When considering future resale value, prospective homebuyers tend to look for a quiet street, open floor plans, beautiful views, access to a greenbelt and large backyards. Matt says location is one of the most important factors for buyers, which Issaquah Highlands offers.

He says the median sales price of a residential home in Issaquah Highlands is over $1 million, with condos selling around $600,000. Since March, the year-to-date (YTD) average is 40 days on the market for residential homes and condos, he added.

Home values are still much higher compared to pre-pandemic. He has seen the market slow down and adjust downward due to higher mortgage rates in order to maintain an affordable mortgage payment for buyers.

“Buyers are facing higher interest rates than about a year ago,” he added. “And sellers are seeing less buyers in the market because of that.”

He says this change is evident here at home as well as in the market as a whole. However, he claims the market is picking up with the warmer weather approaching, as shown by an uptick in listings as well as more buyers scheduling showing appointments and pending sales.

KRISTA MEHR, Owner and broker at Mehr and Associates Real

Krista says the real estate market in Issaquah Highlands is always changing.

In early 2022, the market peaked but started to change right after spring break. By June, interest rates and inflation coupled with a volatile stock market caused our real estate market to come to a complete standstill. From July to December, values dropped about 20% (and more in some cases).

“Right now, our market is stable and rebounding,” she added. “We are even seeing multiple offers due to low inventory.”

Krista says the hottest properties in Issaquah Highlands are single-family homes with four bedrooms all on the top level, an open layout on the main floor, and an attached garage. Popular areas include Dahlia Park for its charm, 30th Avenue and Harrison for the views, and Forest Ridge for its proximity to I-90 and Grand Ridge Plaza.

“We have condos in the $300,000 range all the way up to $5 million homes in one single neighborhood,” Krista noted.

She says a seller should expect an offer in no more than 21 days—if the home is priced correctly, has a good layout, and gets listed at the right time. She has seen certain products like a single-family home under $1.5 million sell in just four days or less.

Krista claims several factors are affecting the housing market and home values in Issaquah Highlands: employment, interest rates and supply.

“Right now, the lack of supply is overpowering the forces of employment and higher interest rates,” she says. “It’s absolutely fascinating to watch!”

Interest rates are a factor for many buyers, she added, but it’s not as big of a deterrent as one would think. Motivated buyers are accepting the current rates with the understanding that they will likely refinance in the future.

According to her, the market just saw the largest refinance boom in history. People are sitting back and enjoying their low payments. For many, it doesn’t make sense to move. Therefore, inventory was the lowest she’s ever seen for a spring market.

Krista says many sellers sabotage themselves by overpricing their homes. Market values can be confusing and it’s important to avoid looking at online estimates. A comprehensive market analysis (CMA) with recent sales from a multiple listing service (MLS) is the best way to determine the value of a home.

“Buyers are totally confused now because the market has switched from being sluggish to pretty hot,” she says. “This can make it challenging for buyers to feel confident about writing an offer with competitive terms.”

One of the most important things to know is your cost of sale and tax implications, Krista adds. Home values have skyrocketed since 2020, and she urges every homeowner to consult a certified public accountant (CPA) to discuss capital gains tax.

“Buyers need to know that the market is turning for the better and how to navigate an improving market,” she says.