Homebuyers beware: Redfin reports Seattle is beyond a seller’s market (Spokane: middle-class, apartments)

[Boxkicker]

Originally Posted by Ira500

So...what is one supposed to do if one gets a job in Seattle? You have to live somewhere.
I guess it depends on how a nice a home you want, how far you're willing to commute, how long you plan on staying, and how important the schools are.
For expensive houses, renting is less expensive, because there's not a huge demand for million dollar houses as rentals. rent on a million dollar house is going to be quite a bit less expensive than the mortgage payment for the same house. Most people who are looking at million dollar houses wouldn't consider renting.
If you're not sure you're going to like seattle, or you have a tendency to move to another city every couple of years, it doesn't make a lot of sense to buy a house, because the transaction costs are so high( about 3% of the purchase price to buy a house, and about 9% of the sale price when selling).
But if you've found your forever home, the one you plan on staying in for 20 years, and your income can pay the mortgage without going on the canned beans and ramen diet, then the fact that the market is hot right now doesn't matter quite so much.
Yes, inventory is horribly low right now. There's not a lot for sale, and there are lots of people looking to buy houses right now. So choices have to be made. Are you willing to spend more than you thought you would? Are you willing to live a little further away? Are you willing to live in a smaller house than you wanted? Are you willing to live in a style of house that you never wanted?
That's the reality of the market right now. You can't just find a house on the market in a sought after neighborhood and just easily buy it. You might win the bidding war but then have to fork up tens of thousands of additional money at closing because the house appraised for less than the selling price.
It's not an easy time to be a home buyer right now. Yes, people are still buying houses every day, but not always the house they really wanted, or in the neighborhood they really wanted, or for the price they really wanted.
On the other hand, if you're thinking about selling your house: Inventory is low, prices are high, and many homes for sale are seeing multiple offers, many above the asking price. There might be a better time to sell in the future, but there might not.

Solid advice!!!!

There are three houses on my street that just went on the market that all have their first Open Houses today, and there are alot of people parked along the street and walking to each one.

I have a feeling they will be gone in the very near future!

[angelenogirl]

Houses that are priced incorrectly around here sit. I take that as a good sign that things aren't beyond crazy. Yet.

[Ira500]

Originally Posted by angelenogirl

Houses that are priced incorrectly around here sit. I take that as a good sign that things aren't beyond crazy. Yet.

The Seattle area real estate market is actually a bunch of different markets, which don't act the same. Seattle north of I-90 is the most frothy. Bellevue, Kirkland, Sammamish, and Issaquah are also quite heated right now. Edmonds, Bothell, Renton, etc are a little less so. Tukwila, Auburn, Bonney Lake, etc are nowhere near the frenzy of these other places.

And with a very hot market comes a few completely unrealistic sellers. It's much more common nowadays for sellers to price their homes at the lower end of market value in order to get a bidding war going.

[mkarch]

Originally Posted by Ira500

So...what is one supposed to do if one gets a job in Seattle? You have to live somewhere.

3 new tent cities were approved for this year. At some point if the housing market keeps up like this the tent city spots are going to command a premium.

[tickyul]

I grew up in Seattle......it USED to be a great place for blue-collar types.

Now, you people making an average income or less, be prepared to live a rat'ish...much like life for lower-income folks in NYC, San Fran or similar.

[homesinseattle]

Karch, one of the very sad parts of this relates (although not in the same way) to what you said. This area is truly getting very tough for low to middle income people to afford. It wasn't like that when I got here 25 years ago, I fear it isn't going to return. Besides having to move farther and farther out or leave town, there seem to be more and more people slipping through the cracks and even ending up in some of the homeless camps and shelters. There are a lot of ways to go broke in this country. For those doing well, this town is booming. Many are getting left behind, though.

[CrazyDonkey]

With significant deflation, nobody wants to buy because the price will be lower tomorrow. With significant inflation, nobody wants to sell because the price will be higher tomorrow.

There is also still a large inventory of houses tied up in forecosure or being sold through auctions, while most new housing being added are apartments. Generally, regular buyers tend not to participate in auction sales.

On the other hand, there are some great houses in Aberdeen and Hoquiam listed at under $65,000:

311 N Washington St, Aberdeen, WA 98520 is For Sale | Zillow ($35,000)

824 Canyon Ct., Aberdeen, WA 98520 is For Sale | Zillow ($49,000)

314 N Jefferson St, Aberdeen, WA 98520 is For Sale | Zillow ($64,900)

More inventory than buyers, in other words...

[Hemlock140]

In Sammamish there are several developments with new homes, starting in the mid 800s, but a smaller 3/2 in an older area can still be found listed in the 400-500 range. They do go in a few days, however, and I don't know if they sold for over listing or not.

[Bimmerfanboy]

Here on the Eastside home prices are crazy inflated. I am looking to buy/build a new home but it's just not worth it in the current market.

[Bimmerfanboy]

Originally Posted by Hemlock140

In Sammamish there are several developments with new homes, starting in the mid 800s, but a smaller 3/2 in an older area can still be found listed in the 400-500 range. They do go in a few days, however, and I don't know if they sold for over listing or not.

The majority of those $800K homes in Sammamish aren't even that impressive. I've visited quite a number of model homes in the area and have come away less than impressed for the price. It's definitely not a buyer's market.