The more they stay the same.
It’s been a few months, I confess. For those of you following Seattle-area real estate, perhaps you have noticed that a lot has been changing in Seattle. The waterfront tunnel project is coming along; the viaduct will come down soon! But fortunately (for sellers) and unfortunately for buyers, prices will NOT be coming down soon.
As you can see below, the median price in King County has risen steadily at a 15.5% clip over last year, keeping pace with year-over-year increases for the last three years. In case you missed it, the Seattle Times posted a recent article about the new high home prices and some other fun stats. Check it out here.
Many of you have asked, well, when Amazon chooses their new HQ2, won’t that bring prices down? Nope. If anything, prices will heat up again when Amazon’s hiring chill heats up. (And don’t forget all the other tech companies hiring around here!)
And Here’s the Other Thing
There’s still absolutely. No. Inventory. Keep in mind, “healthy” supply is around 5-6 months. We are now at 1.1.
What To Do?
Keep those crash helmets on, Seattle and Eastside home buyers! The same advice still applies. The absolutely most important first thing to do is GET PRE-APPROVED! Don’t have a lender yet? Ask me for referrals.
Next, narrow down your focus areas. Get out looking. And don’t fall in love.
The Good News (?)
If there’s a silver lining here for Seattle and Eastside home buyers, it’s that the bidding wars have somewhat cooled. In some areas and for some kinds of properties. Anecdotally, I had a lot of buyers come through listings over the last 6 months who asked all the right questions: How many offers are on the table? How many do you expect? How many pre-inspections have taken place or are scheduled? How high do you think the price will go???
Now, if I had a crystal ball, I’d write a book and retire. But in reality, what happened was…the prices were fair. The buyers who were most afraid of a bidding war didn’t come to the table. And so, more properties have been going for at or a bit above asking, but it’s not quite as crazy-unpredictable.
See? Good news. Sort of. At the very least, now you know what questions to ask, and with a good broker on your team (I nominate myself), you’ll have a good shot at getting the house you want at a price that isn’t 125% of asking.
Don’t Be Afraid!
People are always moving. Buyers just have to be a little smarter–and heartier–than ever.