Home prices in Bellevue and across the state of Washington have risen dramatically over the last couple of years. In fact, earlier this summer, CoreLogic reported that Washington State home values were rising faster than any other state in the country. Many local housing markets, including Bellevue, have experienced double-digit gains in the last year alone.
It begs the question: How long can this last? Will the Bellevue housing market keep soaring into 2017, or will it level off in the coming months? We’ve compiled some trends and forecasts for the Bellevue real estate market to give you a sense of where we are now, and where we might be going.
Bellevue Home Price Trends for Summer / Fall 2016
Let’s start with a look at current home price trends in Bellevue. According to Trulia, the median sales price as of August 2016 was $740,000. That was a gain of 14% over the same time last year, more than double the national average.
Zillow reported a slightly lower number in August, putting the median price at around $717,000. Like Trulia, they too reported a double-digit gain from last year.
Realtor.com offered a similar figure in August, reporting a median closing price of $730,000 for the Bellevue real estate market.
Those figures are for the city as a whole. Home values are even higher in the western part of the city. Earlier this year, The Seattle Times wrote:
“The most expensive local submarket [of Seattle] is in Bellevue, west of Interstate 405, where the median home price hit $1.8 million in April, up from $1.66 million a year ago, according to data released Thursday by the Northwest Multiple Listing Service.”
Data provided by Windermere Real Estate mirror these figures. According to Windermere’s “Eastside Market Review,” the median sales price for Bellevue west of the I-405 rose to around $1.9 million, during the second quarter of this year. The median sales price east of the 405 rose to $715,000. (These figures were based on single-family home sales, which included townhomes but excluded condos.)
So that’s where we are now. Here’s a forecast for the Bellevue real estate market in 2017.
Housing Market Forecast for 2017: More Gains Expected
According to numerous sources, home prices in Bellevue and across the Seattle metro area are expected to continue rising through the end of this year and into 2017.
In June, Peter Orser (director of the Runstad Center for Real Estate Studies at the University of Washington) told The Seattle Times: “There’s no reason to believe that this is going to stop anytime soon.” He was referring to the rapid home-price gains in the area.
While house values are expected to keep rising next year, the gains might be smaller than what we’ve seen over the last year or so. The economists at Zillow, for example, are predicting smaller gains for the Bellevue real estate market, through the summer of 2017. In their words: “Bellevue home values have gone up 12.3% over the past year and Zillow predicts they will rise 6.8% within the next year.” This forecast was issued in August 2016 and extends through the summer of 2017.
Limited Supply a Key Factor
Housing supply has a lot to do with these predicted gains. Or rather, a lack of supply. There simply aren’t enough homes for sale in the area to satisfy the current level of demand. According to a June report by Redfin, the Seattle metro area had the lowest housing inventory of any metro area in the county. “Months of supply was lowest in Seattle at 1.0, Denver at 1.2, and Portland and Oakland at 1.3,” they reported.
So the general consensus among housing analysts is that home prices in Bellevue (and the broader Seattle metro area) will continue rising in 2017, though possibly at a slower pace than the last year. Strong demand and limited supply will be driving factors next year as well.
Disclaimer: This article includes predictions and forecasts for the Bellevue, Washington real estate market in 2017. Such statements were provided by third parties not associated with our company. We have compiled and presented them here as an educational service for our readers.
Have questions? Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We currently lend in all of Washington, Oregon, Idaho and Colorado. Please contact us if you have mortgage-related questions.