Bellevue, Washington is a suburb of Seattle best known for being within driving distance of the home of Microsoft, Redmond. It is thus another Pacific Northwest city where the property market is propelled by high tech. Bellevue, Washington is a rapidly growing city with a competitive housing market.
The city has attracted many buyers in recent years due to its thriving economy, excellent schools, and convenient location. However, the Bellevue housing market has cooled off slightly in the last year, with a decrease in home prices and a longer time on the market. In this blog post, we will take a closer look at the current trends in the Bellevue housing market.
The Current State of the Bellevue Housing Market
According to Redfin, the Bellevue housing market is characterized by its competitiveness, with homes receiving an average of 4 offers and selling in approximately 15 days. As of October 2023, the median sale price for homes in Bellevue stands at $1.4 million, reflecting a 7.9% increase from the previous year.
In October 2023, Bellevue home prices witnessed a notable surge of 7.9% compared to the same period last year. The median sale price of $1.4 million indicates a robust real estate market. Homes are selling slightly faster, with an average of 15 days on the market, one day more than the previous year. The competitive nature is evident in the Redfin Compete Score, emphasizing the high demand for housing in the area.
Sale-to-List Price Ratio
The sale-to-list price ratio for all home types in Bellevue is 99.0%, showcasing the strength of the market. Homes are typically selling close to their list price, underscoring the demand and competitiveness in the region.
Migration Trends
Bellevue attracts homebuyers from various locations, with 4% of them searching to move into the city from outside metros. Louisville, KY, tops the list of metros contributing to inbound migration, followed by San Francisco and Los Angeles. Conversely, the most common destinations for outbound migration from Bellevue include Spokane, WA, and Phoenix, AZ.
Factors influencing the market:
- Bellevue is a desirable place to live, with strong job growth and a high quality of life.
- The housing supply is limited, which is driving up prices.
- Interest rates are still relatively low, making it easier for buyers to afford homes.
Outlook:
The Bellevue housing market is expected to remain competitive in the near future. However, home price growth is expected to slow down due to rising interest rates and inflation.
Is it a good time to buy a house in Bellevue?
If you are planning to buy a house in Bellevue, it is important to be prepared to act quickly and make a competitive offer. You should also be aware that home prices are still high, and they are expected to continue to rise in the near future.
If you are flexible with your move-in date and budget, you may be able to find a better deal. For example, you could consider buying a home in a less desirable neighborhood or a smaller home. You could also consider waiting until the fall or winter when the market is typically less competitive.
Bellevue Housing Market Forecast 2023-2024
Bellevue has been one of the hottest real estate markets in the country for many years. What are the Bellevue real estate market predictions? Bellevue is a city in the Eastside region of King County, Washington, the United States, located across Lake Washington from Seattle. It is the third-largest city in the Seattle metropolitan area and has variously been characterized as an edge city, a suburb, a boomburb, or a satellite city.
Bellevue, Washington, is a thriving city located on the east side of Lake Washington. It is a highly sought-after location for homebuyers due to its proximity to Seattle and the tech hub of the area. With its strong job market and high quality of life, Bellevue has consistently been one of the fastest-growing cities in the United States. Let’s explore the projected forecast for the Bellevue housing market based on recent data.
The Bellevue housing market, as forecasted by Zillow, provides key insights into the real estate landscape of this vibrant city. Analyzing various metrics, Zillow presents a comprehensive snapshot of the market, including home values, inventory, listing prices, and sales ratios.
Current Average Home Value
The current average home value in Bellevue stands at $1,314,284, reflecting a 3.1% decrease over the past year. This data, accurate as of October 31, 2023, underscores the dynamic nature of the real estate market in the area.
Market Dynamics
Bellevue’s real estate market exhibits a quick pace, with homes going pending in around 9 days. This swift turnaround time indicates a high demand for properties, contributing to the overall competitiveness of the market.
Inventory and New Listings
As of October 31, 2023, the market boasts 299 homes for sale, with 130 new listings entering the market during the same period. This data sheds light on the availability of housing options and the continuous influx of new properties.
Sale Metrics
- Median Sale to List Ratio: The median sale to list ratio, a crucial indicator of market efficiency, stands at 0.996 as of September 30, 2023.
- Median Sale Price: The median sale price for homes in Bellevue is reported at $1,336,667 as of September 30, 2023.
- Median List Price: The median list price, reflecting current market valuations, is $1,455,500 as of October 31, 2023.
Sales Performance
Examining sales performance metrics, 36.3% of sales in Bellevue were transacted over the list price, showcasing a competitive environment. Conversely, 49.9% of sales occurred under the list price, indicating varied negotiation dynamics in the market as of September 30, 2023.
Why are Bellevue Houses So Expensive?
Bellevue’s high housing prices can be attributed to various factors, including its desirable location in the tech-driven Pacific Northwest and its proximity to major economic hubs like Seattle. The city offers a booming job market, renowned educational institutions, and a quality lifestyle, making it an attractive choice for both professionals and families. The demand for housing surpasses the available supply, thus driving property prices up.
Bellevue Real Estate Investment Overview
Many real estate investors have asked themselves if buying a property in Bellevue is a good investment. It is a very expensive housing market. You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2022. If you are looking to make a profit, you don’t want to buy the most expensive property on the Bellevue real estate market and expect to make a good profit on rents.
Perhaps you are looking for a slightly different hold-over, an investment property in Bellevue that you might move into or sell at retirement in the future. Either way, knowing your profit potential and purpose is the first thing to consider. Let’s look at the state of the Bellevue real estate market and the factors driving the property market long term.
Bellevue Real Estate Prices
Bellevue, Washington, is a prime location for real estate investors. The city has a strong economy and job market, which attracts a steady influx of residents, resulting in a competitive housing market. According to Zillow, the average home value in Bellevue is $1,296,767, with a 1-year value change of -11.1%. Despite the recent decline in home values, Bellevue remains a highly desirable location for real estate investment due to its strong fundamentals.
One of the reasons Bellevue’s housing market is so strong is due to the city’s proximity to Seattle and its role as a tech hub. The city is home to numerous technology companies, including Microsoft and T-Mobile. This has created a high demand for housing, leading to a competitive market with quick turnaround times and high sale-to-list ratios.
For real estate investors, Bellevue offers many opportunities for growth. While the current trend in home values is a slight decline, the market is projected to remain stable over the next year. This means that investors can purchase properties at a reasonable price and benefit from the city’s steady growth.
Investors can also benefit from the rental market in Bellevue. Additionally, with the city’s strong job market, there is a steady influx of renters, making it a stable market for real estate investors.
One potential downside to investing in Bellevue is the high cost of entry. The city’s high average home value can make it challenging for first-time investors to enter the market. However, there are still opportunities for investment in the city, such as multi-family properties and commercial real estate.
Job Growth in Bellevue
The Bellevue real estate market’s high property prices are due to the booming, high-tech job market. The average Bellevue resident earns a little over fifty thousand dollars a year, twenty thousand dollars higher than the national average. The median household income is over ninety thousand dollars a year. More importantly, unemployment in the area is half to one full percentage point below the national average, and future job growth is expected to be well above the national average.
It is this combination of high wages, wage growth, and job growth that has led to the expensive (but not over-priced) Bellevue housing market. An interesting trend going on is the shift of jobs from Silicon Valley to Washington State for its relatively affordable real estate. And this trend will continue to drive the higher price tier of the Bellevue housing market. We can also be sure that this will fuel the long-term growth of the Bellevue real estate market because students are attracted to local colleges in the hope of interning at Big Tech firms and staying after graduation for high-paying jobs.
Quality of Life
Bellevue gets points for the quality of life. It received an A-plus from Niche.com. And it has an excellent balance of attractions for single adults and families. It is safer than Seattle, which is important to everyone. Yet it has top-tier schools and great nightlife. For example, Bellevue has the third-best public school district in the United States.
The Legal Climate
Around sixty percent of residents of the Bellevue housing market rent, while around forty percent own. Washington State is tenant-friendly. However, it isn’t as hostile to property owners as Oregon. For example, Oregon passed statewide rent control in 2019. In contrast, Washington State has a state-level law prohibiting rent control. There are people in Seattle trying to fight for indirect rent control, such as requiring affordable units to be built whenever others are torn down or charging fees on new construction to pay for new affordable housing units.
Washington State limits security deposits. The state does require you to return deposits within 14 days in most cases. You don’t have to pay interest on rental deposits. And you can start the eviction process the day after the rent is late. There is no state law regarding rent grace periods. One point in favor of Bellevue real estate investment is that it is less hostile to landlords than Seattle. Seattle has strict noise codes and a lot of other ordinances you have to follow.
References
Latest Market Prices, Trends & Forecasts
https://www.zillow.com/bellevue-wa/home-values/
https://www.redfin.com/city/1387/WA/Bellevue/housing-market
https://www.movoto.com/bellevue-wa/market-trends/
https://www.neighborhoodscout.com/wa/bellevue/real-estate
https://www.realtor.com/realestateandhomes-search/Bellevue_WA/overview
https://www.seattletimes.com/business/real-estate/the-markets-chilled-out-but-seattle-home-prices-still-too-hot-for-many-first-time-buyers/
Job market & Quality of life
https://www.niche.com/places-to-live/bellevue-king-wa/
https://www.bestplaces.net/economy/city/washington/bellevue
https://www.cnbc.com/2017/03/17/spacetopasscopyscape silicon-valley-tech-talent-fleeing-to-seattle.html
Legal climate
https://www.nolo.com/legal-encyclopedia/overview-landlord-tenant-laws-washington.html
https://www.avail.co/education/laws/washington-landlord-tenant-law
http://www.seattlemag.com/article/it-time-bring-back-rent-control-seattle-0
