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. But is Bellevue a good place to invest in real estate? Let’s learn more about Bellevue before we list the factors that determine whether or not you should consider investing in the Bellevue housing market.
Bellevue’s real estate prices have skyrocketed in the last several years. Home values have risen by almost 24% over the past year alone. Bellevue is currently a seller's real estate market, which means that there are more buyers than available homes listed for sale. Therefore, home prices are likely to grow at a steady pace in 2022. The Bellevue real estate appreciation rate in the last quarter was around 8.22%, which equates to an annual appreciation rate of 37.18%. That's is very high.1
Looking at the positive forecast, the annual appreciation rate is predicted to be in double-digits. You can either choose to invest in your future or market your home to potential buyers. Let’s find out more about it. Please note that many variables can potentially impact the value of a home in Bellevue (or any other market) and some of these variables are impossible to predict in advance.
Bellevue Real Estate Market Trends
Bellevue, Washington is home to roughly 150,000 people. However, the Bellevue real estate market can best be understood in relation to the Seattle housing market. Bellevue and Seattle are the neighboring Northwest Cities – just a few miles apart and separated by a lake and a few floating bridges. Bellevue is the third-largest city in the Seattle area and an upscale suburb of Seattle proper. For example, it has the second-largest downtown in the Seattle area. Bellevue is a bit quieter than Seattle, but it is also quite a happening place, especially for families.
It can be a great choice to live in as the traffic is medium, public schools and colleges are very near to public transportation, and there are many great parks and playgrounds, such as Crossroads Park Water Playground. If you're moving to Seattle to look for a job, either city works well as you can commute to several Fortune 500 companies from both Seattle and Bellevue.
Data by Redfin shows that the Bellevue housing market is very competitive. Most homes in Bellevue receive multiple offers. The average homes sell for about 10% above the list price and go pending in around 6 days. However, a hot listing can sell for about 23% above the list price and go pending in just 4 days.
Here are some of the key stats for the Bellevue housing market:
- In December 2021, Bellevue home prices were up 27.7% compared to last year, selling for a median price of $1.4M.
- On average, homes in Bellevue sell after 6 days on the market compared to 8 days last year.
- There were 127 homes sold in December this year, down from 192 last year.
- Ideally, a buyer would prefer a sale to ask price ratio that’s closer to 90%.
- The sellers have managed to hold good leverage in these negotiations in the past month.
- Sale-to-List Price = 110.3%, +7.6 pt year-over-year.
- A seller would always prefer scenarios that can yield a ratio of 100% or higher.
- Homes Sold Above List Price = 62.2% +16.4 pt year-over-year.
- Homes with Price Drops = 7.1%, -19.0 pt year-over-year.
On Realtor.com, the median listing home price in Bellevue, WA was $1.3M in December 2021, trending up 25.9% year-over-year. The median listing home price per square foot was $587. The median price of sold homes in the Bellevue housing market is $1.4M and homes are selling for about $587/sqft.
- Bellevue real estate market trends show that it is a seller's real estate market, which means that more people are looking to buy than there are homes available.
- The trend for median days on market in Albuquerque, NM has gone down since last month, and slightly down since last year.
- There are 16 neighborhoods in Albuquerque.
- West Bellevue has a median listing home price of $4.2M, making it the most expensive neighborhood in Bellevue.
- Wilburton is the most affordable neighborhood in Albuquerque, with a median listing home price of $425.
Bellevue Single Family Homes & Condos Stats
As per the real estate company called Neigborhoodscout, single-family detached homes are the single most common housing type in Bellevue, accounting for 49.39% of the city's housing units. Other types of housing that are prevalent in Bellevue include large apartment complexes or high-rise apartments ( 39.62%), duplexes, homes converted to apartments or other small apartment buildings ( 6.30%), and a few row houses and other attached homes ( 4.49%).
According to Movoto.com, in December 2021, Bellevue homes were selling for a median price of $1,400,988, Bellevue homes on average sell after 378 days on the market compared to 85 days last year. There were 32 homes sold in Bellevue for December this year, down from 156 last year. Bellevue, WA was a seller's market in December 2021, which means that there are more people looking to buy than there are homes available.
- The median list price of single-family homes in Bellevue, WA was $1,240,250 in December 2021, compared to $1,590,000 in 2020.
- The median price per square foot of single-family homes in Bellevue, WA was 466 in December 2021, compared to 551 in 2020.
- The median list price of Condos/Townhomes in Bellevue, WA was $1,400,988 in December 2021, compared to $717,500 in 2020.
- The median price per square foot of Condos/Townhomes in Bellevue, WA was 1,225 in December 2021, compared to 669 in 2020.
Bellevue Real Estate Market Forecast 2022
Bellevue has been one of the hottest real estate markets in the country for many years. What are the Bellevue real estate market predictions for 2022? The Seattle metro area has an extremely low housing inventory of fewer than 0.5 months of supply, which is significantly less than what a balanced market would have. Thus, while some housing analysts agree that home prices in Bellevue are unlikely to increase significantly, they are still higher in this area when compared to other cities near Seattle and Washington State as a whole.
Strong demand and limited supply will continue to be driving factors in Bellevue as well. Let us look at the price trends recorded by Zillow over the past few years. Since Feb 2012, the median home price in Bellevue has appreciated by 194% from $462,000 to $1,362,322 (ZHVI). From 2018 to 2019, the Bellevue housing market cooled off. In April, the ZHVI was around $1M and in Dec 2019 it was $982K.
The pandemic changed the track. Last year has been sizzling hot for sellers as over the past year alone the Bellevue home values have gone up 23.5% and will continue to rise in 2022. The supply is very tight and with all the other factors considered, at this time, it is unlikely that the Bellevue housing market will see a price decline or cooling off over the next two years.
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, boomburb, or satellite city.
- This region is currently a seller's real estate market – which refers to a situation in which demand exceeds supply, giving sellers an advantage over buyers in price negotiations.
- The typical home value of homes in Seattle-Tacoma-Bellevue Metro is $718,944.
- Seattle metro home values have gone up 22.2% over the past year and Zillow predicts they will rise 17.7% over the next twelve months.
- The typical home value of homes in Bellevue City is $718,944, up 23.5% over the past year.
- King County's home values have gone up 18.8% (current = $840,894) over the past year and will continue to rise over the next twelve months.
Here is the Bellevue, WA real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast till Dec 2022.
Some of the popular neighborhoods in Bellevue are Lake Hills, Factoria, Vuecrest, Overlake, Woodridge, Eastgate, West Lake-Sammamish, Newport Shores, Enatai, Crossroads, Cougar Mountain-Lakemont, Lakemont, Bridle Trails, Somerset and West Bellevue.
Bellevue Real Estate Investment Overview 2022
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
Before the pandemic, the Seattle area was slightly cooling. Home prices dipped about one percent in 2019. That was a slight market correction after several years of roughly ten percent property appreciation since the 2008 Great Recession. Yet the Bellevue real estate market remained expensive. The median home value in the Bellevue real estate market is just over a million dollars. That’s more than the average Seattle home.
Because the average Bellevue home is out of reach of the first-time homebuyer, this creates an opportunity for those who can afford Bellevue real estate investment. The strong job market and a continued influx of people to the Seattle metro area is why home prices are expected to continue their rise in 2022. A conservative estimate is that home prices will rise by 10 to 15% this year. We’ll say that there are relatively few opportunities for bargains when shopping for a Bellevue real estate investment property.
The percentage of underwater homes is half the national average, and the mortgage delinquency rate is one quarter the national average. It is rare for a property to get a price cut unless it is in a dangerous neighborhood or needs major renovations. The other option is searching for the seven percent of units that are empty and trying to buy them. Another factor to consider is the demand for relatively affordable homes in the Bellevue housing market. There is still rapid appreciation in the 400-600,000 dollar price tier and properties less than 400K.
People relocating to the area are competing for the few half-million-dollar condos and starter homes in the Bellevue real estate market. This makes today a good time to buy Bellevue real estate investment property at the luxury end of the market or buy large properties to convert into several smaller units. That’s why the Bellevue housing market is increasingly being called divided; the upper price tier is “less competitive” while the affordable housing market remains “highly competitive.”
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.
Investing in Bellevue Real Estate or Not: The Conclusion
Maybe you have done a bit of real estate investing in Bellevue but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. The Bellevue real estate market has several points in its favor. It has strong market fundamentals that justify its high prices. The question is whether you can afford to buy property in the Bellevue real estate market and can get a high enough return on the investment.
A good cash flow from Bellevue investment properties means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good Bellevue real estate investment opportunity would be a key to your success. If you invest wisely in Bellevue real estate, you could secure your future.
As with any real estate purchase, act wisely. Evaluate the specifics of the Bellevue housing market at the time you intend to purchase. Hiring a local property management company can help in finding tenants for your investment property in Bellevue. If it is your first time investing in Bellevue real estate, then you would have to be aware of common beginner’s mistakes. Beginners would usually follow the media, buy a property and wait for its value to increase. This could be risky. Real estate investing requires research. We recommend doing your research or hiring a real estate investment specialist for guidance.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by Purchasing an investment property that requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend doing your research and taking the help of a real estate investment counselor.
The other good place for real estate investment is Naperville in Illinois. The Naperville housing market is one of the best options should you choose to invest in the state of Illinois. On the other hand, we advise against investing in Chicago real estate on the whole, with the Naperville real estate market being the only exception.
Kirkland is another hot market to choose for real estate investing. The Kirkland real estate market saw a minor adjustment in housing prices in 2019. However, the Kirkland area is going to resume slow, steady appreciation for the next few years thanks to its expanding high-tech sector. It is also a better housing market for investors than other high-tech hubs.
Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
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
