Summary: Thinking of buying a home in Bellevue, WA? If so, you’ll want to get familiar with the market in this area before leaping into a home purchase. This article will outline where the Bellevue market is forecasted to be throughout 2020 and into 2021.
Home prices in Bellevue and across the state of Washington have started to rise again over the past few months after price drops from mid-2018 to mid-2019. During that time period, the real estate market in Bellevue cooled. And while the market is still not hot right now, things are starting to heat up and prices are starting to increase again. According to real estate market research firm Zillow, Washington State home values increase 2.7% over the past year and are expected to continue increasing over the next 12 months.
It begs the question: Where exactly will prices in Bellevue be in the near future? 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 Spring 2020
Let’s start with a look at current home price trends in Bellevue. According to Zillow, the median sales price as of April 2020 was $968,100. That was an increase of 2.7% over the same time last year, as already mentioned.
Those figures are for the city as a whole. Home values are even higher in the southern part of the city. The most expensive neighborhood in Bellevue right now is Somerset, with an average home price of $1,052,500.
So, that’s where we are now. Here’s a forecast for the Bellevue real estate market for the remainder of 2020 and into the earlier part of 2021.
Housing Market Forecast Throughout 2020 and Into 2021: Market Expected to Pick Up
The last year and a half have seen prices dip in Bellevue and surrounding areas, including Seattle. But prices are expected to pick up, and have already started to. From June 2018 to June 2019, the average home price in Bellevue dropped 4.5%. But the trend started to reverse as of July 2019.
Since July 2019, prices in Bellevue have increased 4.4%, and have increased 2.7% year-over-year from April 2019 to the time of this writing in April 2020. According to numerous sources, home prices in Bellevue and across the Seattle metro area are expected to pick up the pace through the end of this year and into early 2021. More specifically, Zillow predicts that home prices in Bellevue will increase 4.5% from April 2020 through to April 2021.
Even the median rent price in Bellevue is higher than the Seattle-Tacoma-Bellevue Metro median, sitting at a whopping $2,945.
Limited Supply a Key Factor
Housing supply has a lot to do with these prices. Or rather, a lack of supply. There simply aren’t enough homes for sale in the area to satisfy the current level of demand. The Seattle metro area has a very low housing supply level of about 1-month worth, which is far lower than what a balanced market would be.
So the general consensus among housing analysts is that home prices in Bellevue (and the broader Seattle metro area) may not rise by much, but prices are still higher in this area compared to other centers near Seattle and in Washington State as a whole. 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 2020 and into 2021. 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 About Mortgages in Bellevue?
If you are planning to buy a house in Bellevue some time soon, you will want to team up with a seasoned mortgage company. Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as the broader Pacific Northwest region that includes Idaho, Colorado, and Oregon. We offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have mortgage-related questions.