Explosive Real Estate Market! (Seattle, Federal Way: short sale, foreclosures, rentals)

[IDASpaceman]

Participating in a very aggressive real estate market in West Seattle. Hundreds of properties in the $300-500K range...and they are rarely available for more than 5 days--and typically go on open house day. Incredible!

Expected norms are...

- $250-350 per sq ft
- buy "as is"
- pay cash
- submit offer...we'll get back to you
- pay 10-30% more than what it is listed for...
- VA loans are shunned (too much trouble--ie Inspections and Appraisal)

Craziness--but congrats to those who recovered their 2006-2008 losses...

[bad apples]

What is this? Is it a real estate add on city data? Corporate stooge!

[Hemlock140]

Look at the Seattle Times today. The prices in the more affordable suburbs such as Federal Way and Maple Valley are jumping buy 20%, faster than the already high-priced Seattle and Eastside.

Home prices climbing fastest in region’s most affordable spots | Business & Technology | The Seattle Times

[flyingsaucermom]

Originally Posted by Hemlock140

Look at the Seattle Times today. The prices in the more affordable suburbs such as Federal Way and Maple Valley are jumping buy 20%, faster than the already high-priced Seattle and Eastside.

[url=http://seattletimes.com/html/businesstechnology/2023518085_homesalesbyareaxml.html]Home prices climbing fastest in region’s most affordable spots | Business & Technology | The Seattle Times[/url]

Because those that are now priced out of other markets are in a mad dash to find *something* before everything becomes too expensive.

I am completely conflicted about this. On one hand "yay! I bought before it rebounded" but on the other hand "OMG I wouldn't be able to afford buying this home today!"

[SantosLHalper]

Yeah, we are finding this to be real trouble trying to move there. Properties are not staying on the market long and prices are super high. Moving to OLY to try and avoid it, but a property manager I talked to down there said it is way busier than normal. This goes for rentals, not purchases.

[mkarch]

Analyzing the median price doesn't take into account that the lower end areas had many more foreclosures and distress sales depressing the median a year ago. A substantially higher number of the resales in the low end are renovated flips. Combine less distress sales with a higher % of flips and the median sales price shows a change in mix more than actual appreciation.

Originally Posted by flyingsaucermom

Because those that are now priced out of other markets are in a mad dash to find *something* before everything becomes too expensive.

I am completely conflicted about this. On one hand "yay! I bought before it rebounded" but on the other hand "OMG I wouldn't be able to afford buying this home today!"

I've done a comparison on our house and buying it today would require another $25K down and the payment would be $600/mo higher - and I'd still be dealing with a house requiring substantial renovation on top of those higher purchase costs. 2 years ago buying an outdated fixer made sense but it's hard to imagine deciding to buy the same house for over $500K and needing to pour boatloads of cash into it every month on top of the payment.

[Ira500]

My big hope is that this kind of frenzied activity can't last. It doesn't seem sustainable. I don't want another real estate crash, but something a little more sane would be good. Even a year or two ago, houses in the less desirable areas were staying on the market much longer than the houses in sought after areas. Right now that's not the case, and people making offers on houses in decent condition in Skyway and White Center and going up against multiple other bidders.
But it is a good time to sell a house, or to be a seller's agent.

[homesinseattle]

Don't give up! You need a good, creative, outside the box strategy and you will succeed! I often encourage my clients to seek something that isn't perfect, something that needs a bit of work but has good potential. Sometimes these places slip through the cracks or at least present an offer/acceptance scenario that is a bit more manageable. Be ready, be optimistic, be flexible, be decisive!

[es_em]

I bought a short sale two years ago *just* before the rebound really kicked in. Within months of closing, prices had risen enough in my neighborhood that I wouldn't have been able to afford my place or anywhere else in the neighborhood. And now, two years later, my place has appreciated a pretty shocking amount. My real estate friends have been telling clients that if they've even remotely considered selling, to do it now - especially folks in places like Beacon Hill. Just wondering how long this will last and whether it will smooth out or we're in for another crash.

[seattlefun]

I saw a few properties in Queen Anne list at 650k and sell for 850k. The R.E. Agents are under pricing properties just to get some action. Then we have a serious influx of people wanting to purchase now which is driving the property up a bit and getting into bidding wars. More or less it's the same concept that got ebay started with it's bidding wars. Excitement and want overlook money.