"According to statistics from Redfin, in January 2022, Bellevue median home prices were up 72.5% compared to last year. Bellevue homes on average sold for a median price of $1.6 million. On average, homes in Bellevue sell after 6 days on the market, compared to 23 days last year. However, there seems to be less inventory, as there were 80 homes that sold in January 2022 versus last year, when 131 homes were sold."
When analysts consider affordability, 33% of household income marks the limit for housing expense. So a family that makes $120,000 a year ($10,000 / mo) can afford a $3,333 / mo housing expense.* To arrive at that affordability number, analysts assume a 20% down-payment and prevailing interest rates. So for a neighborhood with a median income of 120k and prevailing rates at 4.191% (today’s 30-year fixed rate), an affordable home would cost $663,000 or less. In the last 30 days fifty-eight single family homes sold in Bellevue school district, ranging from $1,200,000 (a 1946 960 square foot two-bedroom fixer on an arterial with no garage marketed as “wonderful opportunity to build” “fantastic [land] value” with “great potential”) to $7,500,000. The median home sold for $2,139,464. One reason buyers flock to Bellevue is for its schools, consistently ranked in the top 1-2% in the nation. A typical teacher salary in Bellevue School district is $72,221. A married couple of typical teachers with three kids would have a household income of $144,442. By standard reasoning they could afford exactly zero single family homes in the school district. The same applies to couples comprised of typical nurses, first responders, fire fighters, police officers, social workers, child care providers, grocery store workers, clerks, paralegals, custodians, famers, food service workers, truck drivers, or mechanics, electricians, or utilities workers—a list of people that are the backbone of our cities core functions, people we so recently lauded as essential—none can afford a single family home in Bellevue. This is not a recipe for a vibrant communities.
* Housing expense includes principal and interest, property taxes and homeowner’s insurance. Such analysis glosses over considerations like number of dependents, other debts, other assets.
James Doerfel | Designated Broker
Prime Realty | James@PrimeRealty.io
