The impending Seattle housing market collapse. (Bellevue, Redmond: for rent, townhouses, buyer)

[pirate_lafitte]

How much further down have prices gone to in the Seattle area for houses?

[texastrigirl]

70Ford...are those the homes right across from Sunny Hills?

[Ira500]

How much further down have prices gone to in the Seattle area for houses?

The peak here was July 2007. prices have gone down about 25% since then. Some area more, some less. Outlying areas have gone down more, in city Seattle neighborhoods closer to downtown have fared a little better.

[jenlion]

I have a friend that's forced to move back to London after husband was layed off at Microsoft. They bought in June 2007 in Bothell for 485 and have just listed the house for 380. I like to groan about having bought in March 2008, but it could be worse -- we aren't moving, I hope. Argh.

[Jennibc]

Originally Posted by jenlion

I have a friend that's forced to move back to London after husband was layed off at Microsoft. They bought in June 2007 in Bothell for 485 and have just listed the house for 380. I like to groan about having bought in March 2008, but it could be worse -- we aren't moving, I hope. Argh.

How could anyone pay nearly half a million dollars for a house in Bothell? I am so glad we bought in Wedgwood, it was so easy to unload it when it was time to go - it sold quickly and we made money.

[ElektroDragon]

I just paid a bit over $335 total for a house in the Canyon Park area. Not too big at 1600 sqft, and not NEW (22 yrs), but it has a huge 9100 sqft yard and its not a condo. And no stupid HOA or dues! Even has hardwood (read: Pergo) floors on the main level. My future kid will be able to walk to his Northshore school. I noticed the prices have started going UP as judged by Zillow. Average values in Bothell have gone up about $3500 in just 3 weeks! It's about the closest I could have possibly gotten to my ideal Redmond/Bellevue location in my $350K price range for a house that is not a dump or 90 years old. Well, maybe Duvall, but then if a future job is NOT in Redmond, I'd be in trouble. At least Bothell gives me lots of flexibility. The best part is my total mortgage will be just shy of my current RENT in Kirkland (which is $200 more than my MORTGAGE was back in NY state). I almost bought a house in North Bend around the same price within short walking distance of supermarkets and shopping, with an awesome 360 degree mountain view. It was paradise until I realized it was in a flood plain in the middle of the most flooded area of North Bend. That was a sad discovery. Sometimes I wonder if I should have taken my chances. Yeah, I looked everywhere fron Lynnwood to Monroe to North Bend.

Anyway, don't mean to ramble... my point is that unless this is a temporary spike, the bottom of the market was hit 3 weeks ago, jugding as a recent home hunter. And the height of the buyer's market was probably in late February at the height of the panic when you could expect to get just about any non-insane price you asked for. By the time I bought this one, the market had warmed up again so fast that I only came in less than $15K below list. Of course, it did not help at all that I bought a house which had only been on the market ONE DAY. Some of the other new listings I looked at the same day I bought this house have already sold, so it's probably good I did not wait. There is a lot of inventory to be sure, but anything in the $350K and less range is being gobbled up at an alarming rate all of sudden... unless its a dump. If you're in the price range and on the fence, I would suggesst NOT waiting. I'm not sure I believe that prices will continue to fall for another 12 months, and interest rates have already bottomed out.

[texastrigirl]

I have also noticed on Zillow that homes are gaining in the last few weeks. My realtor who works for CBBain in Bellevue said things are starting to move nicely. I hope it's not temporary...I'd like to refinance but need to get some comps in that make sense first.

[Ira500]

Okay, here's the skinny as I see it:

Sales have picked up in a certain price range, roughly the 300-400 thousand dollar range. The very expensive homes are not selling at all, and about 20% of all sales currently are either preforeclosures or real estate owned ( bank or lender owned). Just lately the price drops have increased while sales have also increased, but sales always increase in the spring, and unemployment is increasing.Maybe some of the folks who would have purchased a half a million dollar home a year or two ago are "settling" for a 350 thousand dollar house now and maybe that part of the market is stabilizing, but I think we overall haven't hit bottom yet.
But...It sounds like you did real well Elektrodragon.

[ElektroDragon]

Originally Posted by Ira500

Okay, here's the skinny as I see it:

Sales have picked up in a certain price range, roughly the 300-400 thousand dollar range. The very expensive homes are not selling at all, and about 20% of all sales currently are either preforeclosures or real estate owned ( bank or lender owned). Just lately the price drops have increased while sales have also increased, but sales always increase in the spring, and unemployment is increasing.Maybe some of the folks who would have purchased a half a million dollar home a year or two ago are "settling" for a 350 thousand dollar house now and maybe that part of the market is stabilizing, but I think we overall haven't hit bottom yet.
But...It sounds like you did real well Elektrodragon.

You're right, and its probably why my agent who normally sells 600K+ houses in Bellevue was so eager to work with me in my price range! So yes, if want a 400K+ home, keep waiting for drops, but if you want a 350K range home, I'd say buy now because I don't think this end will get much cheaper, quite the opposite.

[seattlenextyear]

Elecktro, let me know if you find any good restaurants in Bothell.