The Bellevue housing market has been exhibiting a competitive trend with homes selling rapidly, often within just a few days of listing. In recent months, the median sale price of homes in Bellevue has seen a significant increase, reflecting the high demand in the area. This robust market activity is coupled with a notable influx of buyers from metropolitan areas, further driving the market's dynamism.
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.
The Current State of the Bellevue Housing Market
Current Market Performance
Recent data by Redfin indicates that Bellevue home prices have surged, showcasing an impressive 8.7% increase compared to the previous year. The median price for homes in Bellevue now stands at a substantial $1.5 million, underlining the city's appeal to affluent buyers seeking upscale living experiences.
Moreover, the pace at which homes are being snatched off the market is nothing short of remarkable. On average, homes in Bellevue are selling within a mere 5 days, a significant decrease from the 17 days recorded last year. This swift turnover underscores the intense competition among buyers vying for coveted properties in this desirable locale.
| Sale-to-List Price | Homes Sold Above List Price | Homes with Price Drops |
|---|---|---|
| 102.0% | 36.4% | 33.8% |
Delving deeper into the data, it's evident that Bellevue's housing market is fiercely competitive. A staggering 36.4% of homes are selling above the list price, representing a 12.4 percentage point increase from the previous year. Additionally, 33.8% of homes experience price drops, signaling the strategic maneuvers of sellers to attract buyers in a market characterized by high demand and limited inventory.
Bellevue Market Dynamics and Buyer Trends
The allure of Bellevue extends far beyond its picturesque surroundings; it's a magnet for individuals seeking a blend of urban amenities and suburban tranquility. In the first quarter of 2024, 21% of Bellevue homebuyers expressed a desire to relocate out of the city, while an overwhelming 79% opted to remain within the metropolitan area.
Interestingly, Bellevue's appeal transcends regional boundaries, with 3% of homebuyers nationwide expressing an interest in moving into the city from outside metropolitan areas. Notably, individuals from San Francisco, New York, and Washington showed the highest propensity to relocate to Bellevue, drawn by its robust economy, quality of life, and investment potential.
As we look ahead, the future of Bellevue's housing market appears promising yet challenging. The intense competition and limited housing inventory present hurdles for prospective buyers, driving prices upward and creating a seller's market environment.
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 Housing Market Forecast for 2024 and 2025
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.
According to Zillow, the average Bellevue home value stands at $1,433,982, marking a 5.5% increase over the past year. This notable rise in value underscores the city's robust real estate market.
For Sale Inventory
As of March 31, 2024, the Bellevue housing market boasted a for sale inventory of 205 properties. This figure indicates the availability of housing options for potential buyers to consider.
New Listings
New listings are a crucial indicator of market activity and demand. On March 31, 2024, Bellevue saw 112 new properties listed on the market, reflecting ongoing interest from sellers.
Median Sale to List Ratio
The median sale to list ratio provides insight into pricing dynamics and negotiation trends. As of February 29, 2024, this ratio in Bellevue stood at 0.989, indicating properties typically sell very close to their list price.
Median Sale Price and List Price
Bellevue's median sale price as of February 29, 2024, was $1,190,667, while the median list price as of March 31, 2024, stood at $1,379,167. This discrepancy suggests a potential for negotiation between buyers and sellers.
Percent of Sales Over and Under List Price
Understanding the percentage of sales above and below the list price provides valuable insights into market competitiveness. In Bellevue, 32.7% of sales as of February 29, 2024, were above list price, whereas 55.3% were below list price. These figures indicate varying degrees of negotiation flexibility within the market.
Is it a Buyer's or Seller's Housing Market?
Assessing whether the current Bellevue housing market favors buyers or sellers requires careful analysis of various factors. With median home values on the rise and a relatively low inventory of homes for sale, the market leans towards sellers. However, the presence of negotiation flexibility, indicated by the percentage of sales above and below list price, suggests opportunities for buyers to find deals. Ultimately, market conditions may vary depending on specific neighborhoods and property types.
Are Home Prices Dropping in Bellevue?
Despite fluctuations in market conditions, Bellevue home prices have shown resilience, with a consistent upward trend over the past year. While short-term fluctuations may occur, sustained demand and limited inventory typically mitigate significant price drops in the long run.
Will the Bellevue Housing Market Crash?
Predicting a housing market crash involves considering a multitude of economic and market factors, making it a daunting task. While occasional downturns may occur, the fundamentals of the Bellevue housing market, including strong demand, limited supply, and favorable economic conditions, suggest resilience against a major crash.
Is Now a Good Time to Buy a House in Bellevue?
With mortgage rates lower compared to last year, now presents a favorable opportunity for prospective homebuyers. Lower interest rates can result in reduced monthly payments and increased purchasing power. Additionally, despite the competitive market, buyers may find opportunities for negotiation, particularly in properties listed below the median list price.
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 2024. 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 $1,300,183, with a 1-year value change of -0.1%. 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
