Has real estate prices in the Seattle area dropped quite a bit? (Tacoma: bank owned, for sale)

[observer]

Over the past few years or so I really haven't been paying close attention to the real estate market in Seattle. Out of curiosity, I was browing the internet and looking for homes and condos for sale in the Seattle area. To me it appears as if the prices of condos and homes have declined somewhere between 30%-50% or more over the past several years.

I remember between 2004-2007 where it was almost impossible to find anything in the Seattle area for less than $100,000 unless it was an old shack in very poor condition. Condos in Federal Way and areas South of Seattle was over 100k. Today, you can find quite a bit of condos for sale for under 100k, and even below 80k. Even in Kirkland condos are listed around 100k. I even saw quite a few single family home (not in the best condition) selling below $125,000. Those same houses about 4 or 5 years ago would probably have sold for 2x that amount. It appears that the zipcode 98198 had the most listing under $100,000.

Anyone with more specific info. as far as which areas have depreciated the most and which areas may be the best buy long term? I am still somewhat shocked at the low prices I saw listed. I guess it is a good time for those that have not bought to buy. Unless prices are projected to keep declining over the next year or 2.

[Ira500]

There's a big range of how prices have dropped in the Seattle area. Places like Ravenna and Wallingford and Greenlake and Queen Anne, and eastside areas like Sammamish or areas close to downtown Bellevue haven't come down a whole lot since the 2007 peak, maybe 15%?
Condos have come down much more all over the Seattle area, and areas like SE Seattle, Kent, Auburn, Renton, Federal Way and in the north, places like Mountake Terrace have come down 40%+, and more for condos. A lot of the bank owned and short sale properties are more like 50% off the peak in those areas. But which areas are the best to buy in long term? I can't really guess. In some places around Seattle now you can buy a house or a condo and rent them out for more than your mortgage payments would be. There's a two bedroom condo for sale just north of Renton right now right on Lake Washington for just over 100,000. You would have never seen that five years ago, or even close. But I don't know whether prices have hit bottom yet, or which areas make the most sense to buy in. Other than if you can buy a place you like, and live in it for less than the cost of rent, that could be a good thing if you plan on keeping it over the long term.

[texastrigirl]

We live in Sammamish and based on our next door neighbor's house that just sold in 5 days and is a perfect comp to ours, we are down 8% from the height of 2007 (when we bought of course!). We are in great schools zone though and close to Pine Lake and I-90...all which go towards that location, location, location theory.

[nfdsouza2001]

We are facing multiple offer situations with a home home Tacoma getting 11 offers

[tobester]

Originally Posted by nfdsouza2001

We are facing multiple offer situations with a home home Tacoma getting 11 offers

It must not be crazily over-priced.

[pw72]

Ira is the expert, so I defer to this poster.

However, prices in general throughout the Puget Sound region have fallen significantly, although not as much as some areas like Phoenix and Las Vegas. I believe Seattle is poised to see gains once things turn around. My brother's Lake Washington view home was valued at near 750K near the peak, and he told me today it would sell for 550. Wow.

[Ira500]

Originally Posted by pw72

Ira is the expert, so I defer to this poster.

However, prices in general throughout the Puget Sound region have fallen significantly, although not as much as some areas like Phoenix and Las Vegas. I believe Seattle is poised to see gains once things turn around. My brother's Lake Washington view home was valued at near 750K near the peak, and he told me today it would sell for 550. Wow.

You're not wrong at all, pw72. How far prices have dropped around here is all over the map. Some of the priciest homes have taken huge hits(Mercer Island and West Bellevue have fallen quite a bit), and some of the inexpensive areas have taken even huger hits, but the "medium" priced homes within easy commuting distance to either DT Seattle, downtown Bellevue, or Microsoft have held up better. All told, I think the median price for a home in King County(single family and condo combined) have fallen 32% from the peak, with the lowest tier falling the most(over 40%) and the middle tier the least.

[MichaelinWA]

The KING 5 newcast recently spoke about the odd "inverted bubble" in which supply is diminished due to fewer people putting up their places for sale in poor conditions. This doesn't necessarily mean that demand is really that great.

Home prices fall to 2004 lows | KING5.com Seattle

Originally Posted by nfdsouza2001

We are facing multiple offer situations with a home home Tacoma getting 11 offers

[texastrigirl]

Inverted Bubble is also happening in Austin TX right now. Causing houses to go way overpriced with mulitple bids in a 24 hour period. Problem is getting an appraisal for contract price in the inverted bubble.

[Chilkoot]

We're under contract on a condo short sale in Belltown. Our offer was accept at 40% less than it sold for in 2006. I look everyday and the supply in our price range has dropped as well. Interesting times.