Prospective home buyers waiting on the sidelines may want to consider getting back in the game, as home sales begin to rise and evidence of a stabilized housing market surfaces. The Commerce Department recently reported an increase of 6.2 percent in new home sales in the month of October.

Bellevue also is beginning to show traces of the industry trend.

Washington Square, a condominium project in downtown Bellevue, has seen a rise in new home sales over the past two months. Sales have more than tripled in the months of September and October, with 26 condominium units sold.

Prior to this, Washington Square was selling a one unit per month.

According to Mike Nielson, chief operating officer for Washington Square, there is no definitive answer for the increase in sales, but the jump in numbers could be linked to the high-rise project’s recent certification of the Federal Housing Administration.

By earning the FHA certification, prospective buyers of a Washington Square condominium unit may have a better chance of getting insured loans, which can carry more favorable terms. With a FHA loan, rather than paying 10 percent to 20 percent as a down payment, buyers can put as little as 3.5 percent down. Those seeking FHA loans also may get that down payment from family members and have a higher debt-to-income level than those required by conventional loans.

“I don’t think there’s a silver bullet behind the rise in sales, but I do think there’s a restored confidence in the downtown Bellevue community,” Nielson explained, noting that 200 units at Washington Square have closed. “We’ve reached a point where there’s no more speculation surrounding our project. From a buyer prospective, the speculation has been toppled. We’ve proven ourselves.”

The demographic of new condo buyers at Washington Square have been a three-part mixture, according to Nielson, an equal blend of baby boomers, young families and single professionals looking to live near a thriving downtown core.

The average selling cost for a Washington Square condo unit over the past three months averaged between $400,000 and $800,000 with a high of $1 million. Only one of the 26 buyers made use of the federal government’s first-time homebuyer credit of $8,000.

Washington Square is not the only hot ticket in town. Nielson said fellow high-rise condominium projects are also reporting an increase in sales.

“I know Bellevue Towers have been doing decent and the Bravern hasn’t scheduled closing yet, but I imagine they will do well,” Nielson explained, adding, “We are driving the trend, but others are coming along. There’s a general sense in downtown Bellevue – a confidence that is driving sales.”

Washington Square was completed in 2008 and consists of two 23-story condominium towers and 26 townhomes. Sales have jumped since Wasatch Development, the developer of Washington Square, announced preliminary plans for the second phase of the $1.2 billion, 10-acre downtown Bellevue superblock. The second phase will include 650,000 square feet of office, hotel and retail development and parking on the corner off Northeast Eighth Street between 106th and 108th avenues Northeast.

The plans will be available to the public in 2010 once The city of Bellevue gives the official stamp of approval.

To learn more about Washington Square, visit www.washingtonsquareliving.com.

Lindsay Larin can be reached at 425-453-4602.