Dec. 25, 2009 - 2009 Home Prices in Bellevue

In 2009, 52 people were able to buy a home for $300,000 or less in Kirkland. 39 were able to buy a home in Redmond for $300,000 or less.

In Bellevue? Only 9 properties sold for $300,000 or less.

I have a bias toward 98007 and 98008. Close to Microsoft Campus. Close to Crossroads. Close to Lake Sammamish. While I have done the stats in $100,000 increments to match my other posts, I actually like this area in the $350,000 to $450,000 price range for homes without a view. For newer homes in the $650,000 range I'm usually up on Education Hill. For a higher price in 98007 and 98008 I'd rather see a great view than more house for that extra money. But in the $450,000 give or take range, close to Microsoft, it's hard to beat this particular "neighborhood".

I've mixed things up a bit in the 98004 and 98005 market stats, as for homes priced at $700,000 or less these zip codes operate roughly the same, but massively different when you pass the $700,000 mark.

In 98004 you really have to watch your #FAIL rates. People have a tendency to think their homes are worth more than they are, and so price reductions prior to sale are more the norm than the exception. Look for short sales and bank owneds or prices relatively close to those levels. Study your comps very carefully and make sure you are comparing apples to apples. it's very easy to pay $900,000 for a house worth $825000 in 98004. There are some great homes and some great buys, but you really have to know what you are doing in this market. It's easy to be fooled.

87 failed attempts to sell 17 houses means your had 70 chances to be fooled into paying the wrong price. 43 failed attempts to sell 13 houses is not looking too good either. Study those 13 solds VERY carefully before making an offer in the $700,000 to $800,000 price range. Make sure the home you are buying offers an equivalent value.

98005 under $700,000 is a fairly comfortable market where it is hard to go wrong. In the graph above you see that 74 houses sold in 98004 and 70 houses below in 98005, but 98005 had a lower #Fail rate. Over $700,000, especially a lot over $700,000, you may be better off in 98004, so be sure to look at both.

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If you are one of the lucky people to find a house for $500,000 or less, that you like, in 98004 and 98005, try to hold on to it for as long as you can. These homes even if not in the best shape, likely have a good opportunity for appreciation when the builders come back looking for lots. But that could take 7 to 10 years. 98004 and 98005 in the "lower" price ranges usually have more of a land play than those in 98007 and 98008. So take that into consideration if you are looking at homes in both areas at the same time.

98006...Honestly, it's a different "Bellevue" all together. Comparing 98006 to the other Zip Codes of Bellevue is like trying to compare Issaquah to Kirkland.

98006 scares me like Rose Hill in the upper price ranges scares me. Not sure why, but I don't go to either often, especially when the price gets over $500,000. I did find an awesome home for $300,000 in Rose Hill Kirkland with NO freeway noise this year. So I'm not saying never. But for some reason you rarely find me in 98006. Maybe I'll spend some time there this year to find out why...maybe not :)

If someone knows a really good reason to favor 98006 over the other zip codes in Bellevue, please feel free to post it in the comments for me and the readers. The few times I've been there it has been the T-House or the house across the street from the great house that backs up to the greenbelt. There are lots of great houses, but the ones that seem to turn over the most are the ones that have a shortcoming. So if you are looking there, make sure you are looking at ALL of the pros and cons of the house, and not just the houses around it.