Are you thinking about buying a home in Bellevue, Washington in 2017 or 2018? Here is an updated look at real estate market conditions and trends in Bellevue, to help you make an informed decision.
Home Price Trends as of Fall 2017
Home prices in Bellevue have risen steadily over the last couple of years, with strong double-digit gains reported over the last 12 months alone. The real estate information company Zillow reported that the median home value for Bellevue had reached $842,900, as of October 2017. That was an increase of 15.7% from the same month a year earlier.
Some historical context: Home prices across the U.S. tend to rise somewhere between 3% and 5% annually, dating back several decades. So the latest real estate trends in Bellevue are something of an anomaly, as far as annual appreciation goes.
The median home value for Bellevue is actually higher now than the median in Seattle, though both cities have experienced similar price growth over the last year.
According to Trulia, the average price per square foot within Bellevue’s real estate market rose to $456 in October 2017, up from $367 a year earlier.
Real Estate Market Conditions in Bellevue, Washington
The overall real estate conditions in Bellevue, Washington can be summed up with a single word: competitive. Limited supply and strong demand have led to fierce competition among home buyers, particularly within the most desirable neighborhoods.
If you want to know what’s driving real estate market conditions and trends in Bellevue, look no further than the inventory situation.
According to reports published in October 2017, Bellevue had a 0.8-month supply of homes for sale. That’s far less than the national average of 2.8 months, and even that is well below normal. A “balanced” real estate market is said to have somewhere between five and six months worth of supply. Both Seattle and Bellevue had less than a one-month supply, as of October.
This is what’s driving real estate market conditions in Bellevue, more than any other single factor.
Home Are Selling Within Days, in Many Cases
The supply crunch is also resulting in quick real estate sales in the Bellevue area. Last month, homes listed for sale in the area spent a median of just nine days on the market, before going under contract. The national “median days on market” during the same period was 39.
So we are talking about a fast-moving real estate market where homes sell quickly due to strong demand and limited inventory.
On the demand side, there has been slow but steady population growth in Bellevue, Washington. The city’s population grew from around 102,000 people in 1990, up to 141,400 people in 2016, according to the U.S. Census Bureau. That’s average growth for a city the size of Bellevue — not a “boom” by any means.
Population growth is not what’s driving those tremendous price gains of the last couple of years. Rather, it’s the limited supply situation within Bellevue’s real estate market.
In summary: Limited supply and strong demand are resulting in quick home sales, while boosting competition among buyers. All of this puts upward pressure on house values and has led to above-average price growth. Those are the predominant real estate market trends and conditions for Bellevue, Washington as of fall 2017.