Housing market (Seattle, Kirkland, Lynnwood: houses, neighborhood, buying)

[homesinseattle]

Another example on the ground that just happened. I have a 4 bedroom, 2 bath home listing right now. It’s just over 2000 square feet, 2 floor 1915 built traditional Craftsman, on a very nice street in Historic North Everett, 1200 block of Hoyt Avenue. I had it listed at $550,000, no action. I believe 3 months ago it would have sold there. My sellers wanted to sell, reminded me they had bought it years ago (from me) for $200,000 and that they were flexible.

Since then, we accepted an offer for $500,000 and are moving to closing. My clients have since bought a home, which we were able to negotiate from $800k to $760k. So, things don’t exist in a vacuum. Although they had to let go of the price they originally thought they would get to sell, market dynamics allowed me to negotiate a similar price reduction on their purchase. Oh, and their mortgage rate on old home was 4.75, they just got a 3.25 fixed on their new one.

[Gaylord_Focker]

Every thing you hear from a RE agent, seller, or buyer is anecdotal. People are still buying, just not as much. There's probably less stock though:

https://www.marketwatch.com/story/ex...ket-2020-04-21

Numbers in the article are for Jan and Feb. March and April could look worse.

[homesinseattle]

An interesting coronavirus related real estate story. I got a call just 2 days ago from a 60ish year old former client of mine, about a year ago I helped her now 88 year old mother sell her large 2 level home and move to an assisted living facility. She is still sharp as a whip, just moves a little slowly.

My client said “my Mom got scared by COVID stories in care homes, has decided she wants to lessen her exposure to so many people, she also hates the food in this place. Please find her a one level home to buy with enough space for a live in caregiver and we’d like to move her in quickly”. I yesterday morning found a great place that fit their needs in Snohomish County, got their offer accepted at 10pm last night and we close in 3 weeks.

[noah]

lender tightening is also bound to happen. Most 4 bedroom homes in the city of Seattle would be jumbo and affected. Many people suffering and its bound to affect real estate to some degree at some point. Of course real estate moves slowly so it will be 6 months before we know.

https://www.bankrate.com/mortgages/j...-is-shrinking/

[homesinseattle]

Real estate in this area seems to be rolling along pretty well. Most desirable new listings are going under contract the first week or two, driven I'm sure in part by low interest rates. Homes are disinfected regularly, 3D tours integrated on many listings, only one buyer through home at a time with real estate brokers and only people who pledge that they are in good health. I've noticed almost without exception that masks are being worn, social distancing respected. The changes we have implemented seem to be working well. Life goes on, people keep buying and selling homes.

[CoastieTX]

Up here in Bellingham, decent homes below $500K seem to be moving, but they are slim pickings. There is a lot of garbage in this price range that is now sitting and starting to see price reductions.

$600K and up is sitting and I’m starting too see significant price drops, sometimes as much as $50K.

Will be interesting to see what happens as the gap between the two price levels narrows. We seem to have a bifurcated market.

[joyfulmorning]

I don't doubt the housing market will be effected, however I think there are many sub-markets in the area. There are still many buyers who can purchase homes from 1-2 million in Kirkland, Redmond, East Bellevue much of Seattle, Issaquah etc. and then 2.5 million and above to live in Clyde Hill, West Bellevue and Mercer Island. The people who are losing their jobs in restaurants, hospitality etc. on the low end were never in the market for these homes. Of course, it will have a knock-on effect, but it almost certainly will affect rents. Lots of those workers will be in rental properties around the South end particularly and Lynnwood and Everett. Large numbers of new apartments and condos are coming on line this year. In the Totem Lake area of Kirkland alone a few hundred brand new apartments have just be completed. Usually the market would absorb all the new inventory but now that could all change. So rents could definitely be reduced, at least for a couple of years.

Although lending has tightened and jumbo loans are harder to get, and a large numbers of buyers in our area need a jumbo so that is sure to have an effect. Prices will definitely be affected if buyers can't get a mortgage. Sally Mae forecasts rates could actually drop below 3% in 2021, so if prices dip some lucky buyers are going to get a cheaper house with a cheaper mortgage.

Amazon are hiring 100,000 more people. Can workers from retail, hospitality, restaurants and aerospace be absorbed, when the unemployment rate is at 1 million? Probably not. I also have a kid who is a Freshman at the UDub, some of her friends are going to take time out from school. I told her I didn't think that made sense for her as she might not be able to work and she can't travel. At least if she stays in school, in three years time she will be ready to see where the market is and there may be less competition for jobs if a higher percentage of students drop out.

[CoastieTX]

Another factor I forgot to mention as it pertains to Bellingham...if Western Washington University’s campus remains closed into fall quarter and only offers classes online, we are going to have a lot of empty student housing rentals. In fact, I believe we are already feeling the effects of this...who’s going to secure a pre-lease for the fall right now?

Something tells me most Bellinghamsters couldn’t care less about the plight of our local landlords, however...

[xPlorer48]

Originally Posted by CoastieTX

Another factor I forgot to mention as it pertains to Bellingham...if Western Washington University’s campus remains closed into fall quarter and only offers classes online, we are going to have a lot of empty student housing rentals. In fact, I believe we are already feeling the effects of this...who’s going to secure a pre-lease for the fall right now?

Something tells me most Bellinghamsters couldn’t care less about the plight of our local landlords, however...

I drove through there today. Lots of Hammer (BIG landlord) vacancy signs out, actual street parking spots available and few people hanging out. The college parking lots are empty.

[Wintermomma]

I've been watching like a hawk for about 2 months now, being in the "could we live there realistically mode," and it feels like, to me, the houses that meet my criteria are eeking up in price. Each week I'm having to adjust up my search criteria prices just to see things which I like can no longer afford come up in case there is a lowering when/if it comes time to make a decision.