Knowing how much your home is worth is important, even if you don't plan to sell any time soon. Here are some tips to help you determine how much your home is worth in today's market.
Summary: Are you thinking about buying a home in Bellevue, Washington? If so, you’ll find the following real estate market update helpful. It compiles all of the latest market data, trends and developments that are relevant to Bellevue home buyers — fully updated for 2020.
If buying a home in Bellevue, WA is on your agenda for 2020, then perhaps now might be a good time to jump into the market. There are many reasons for this, and understanding the current market will help you make a sound decision.
Buying a Home in Bellevue, WA: 2020 Update
The median home value in Bellevue, Washington was $943,700 as of February 2020. Housing inventory is not as tight as it was last summer in 2018, and competition among buyers is not as fierce either. As a result of this supply and demand imbalance, the typical home listed for sale will go under contract fairly quickly.
Bellevue has a cool real estate market so far this winter, with prices having declined 1.0% over the past year, according to Zillow. But it’s predicted that prices will make a turnaround further into the year, with prices expected to increase 5.6% over the next year.
Those are three of the most important things you should know when buying a home in Bellevue in 2020. Here’s an in-depth look at those three topics.
1. Median home price is at $943,700 in the winter of 2020.
If you currently live in the Seattle metro area (or anywhere in Washington for that matter), you may have noticed that home prices have dipped slightly over the past year.
Even though Washington has outpaced every other state in the nation over the last couple of years, in terms of home-price appreciation, Bellevue’s home prices are a bit on the cooler side this winter.
So those buying a home in Bellevue right now will encounter lower housing costs than those who purchased last year, making this a great time to buy. But prices are expected to increase quite a bit this year, so those buyers who put off their plans until later in 2020 may encounter higher home prices if Zillow’s predictions are accurate.
So how much does the typical home cost in Bellevue, as of 2020? According to Zillow, the median house value for the city is at $943,700 during the winter of 2020. (The median is basically the midpoint for the market, in terms of pricing.) That was a decrease of about 1.0% from the same time a year earlier. But the company’s economists predict that the median home price would increase by 5.6% over the next 12 months ending around February 2021.
That said, Bellevue is still ahead of Seattle, which gets a lot of media attention for being one of the most expensive cities in Washington State.
2. Housing inventory is still very tight in Bellevue and across King County.
There continues to be a shortage of housing supply in many parts of Washington state, and Bellevue is no exception. While inventory may have loosened somewhat over the past year, which has contributed to the dip in housing prices, inventory is still tight in the area. In most cities across the country, there’s currently a shortage of housing supply relative to demand.
According to the Northwest Multiple Listing Service (NMLS), the Bellevue area has basically run out of lower-priced housing inventory. Anything priced under the $500k mark is virtually impossible to find right now. Even listings in the $1 million to $1.5 million price range are very hard to find thanks to tight inventory these days.
Related: Housing inventory rises in Seattle
As a general rule, a 5- to 6-month supply of homes for sale indicates a balanced real estate market. It’s not a seller’s or buyer’s market, but more “neutral” in nature. When supply falls well below that level, you have a seller’s market. Having more supply, on the other hand, will create more of a buyer’s market.
As of winter 2020, Bellevue’s inventory is well under that mark. For the first time since March 2018, the supply of homes in King County sank below one month.
With a decrease in supply of inventory, that means there’s less to choose from, which could push prices higher as we head further into 2020. As such, now might make a good time to get into the market in Bellevue before prices are driven even higher.
3. The typical home for sale spends less time on the market.
According to Redfin, many homes get multiple offers, some without any contingencies, as of February 2020. Homes tend to go pending in about 8 days, and in-demand homes can sell for 3% over asking price and go pending in as little as 5 days.
This means that the average home listed for sale in the area is not taking very long to sell these days. So those planning to buy a home in Bellevue may still want to move quickly with a strong offer when the right property comes along in 2020.
Need a Mortgage in Bellevue?
Are you in need of mortgage financing to purchase a home in Bellevue, Washington? If so, we can help. Sammamish Mortgage is a Bellevue-based company that offers competitive pricing on various mortgage programs. Contact us today to get started on your mortgage application!