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Sellers Cutting List Prices Faster Than Any Other Metro In The Country

A report from the Seattle Times in Washington. “The number of homes sitting unsold in King County has doubled in the past year as buyers continue to retreat from the once-hot market — pushing prices in the city of Seattle down even further. Inventory countywide jumped 86 percent among single-family homes and 188 percent among condos in October compared to a year prior, according to the Northwest Multiple Listing Service. It was the largest year-over-year increase on record, dating back to 2000 — breaking the previous mark set just a month prior.”

“In the city of Seattle, the median home price fell to $750,000, down $25,000 in one month and down $80,000 from the record set in the spring. That’s not a normal seasonal drop – prices in the city actually went up during those time frames last year.”

“A few more people are putting their homes on the market but the shift continues to be largely the result of buyers taking a step back; countywide, sales fell 16 percent in October from a year prior.”

“Sellers have reacted by cutting list prices faster than any other metro area in the country. And buyers are now negotiating prices down even further, as the average home is selling for below list price for the first time in four years.”

“For the first time in a while, there’s even a single-family house with a yard for sale in the city limits of Seattle for under $300,000: A small, older home in Highland Park that failed to sell for $328,000 last month is now offered at $299,000.”

“Altogether there were 17 houses for sale in the city for under $400,000 on Tuesday, including seven with price cuts. Ken Graff, a broker with Coldwell Banker Bain in Seattle, noted he put a town house in Magnolia on the market in April – right before the apparent peak of the market – and it quickly got 11 bids and went way over asking, selling for $800,000. In September, he put the neighbor’s identical town home for sale and it stood unsold for three weeks before selling for $725,000.”

“‘Buyers are still having to pay a premium for Seattle-area properties, but it lacks the frenzy we’ve seen in the last few years,’ Graff said. ‘People can be a little more measured now, which is a good thing.'”

This Post Has 21 Comments
  1. The title:

    ‘Seattle home prices down $80,000 from peak amid unprecedented spike in homes sitting unsold ‘

    Where did all these shacks come from? It’s like magic!

    1. “For the first time in a while, there’s even a single-family house with a yard for sale in the city limits of Seattle for under $300,000: A small, older home in Highland Park that failed to sell for $328,000 last month is now offered at $299,000.”

      There are innumerable moldy rotboxes in south Seattle that should sell for under $100,000, in non-bubble times.

    2. B…b…but the local realtors said the reason for low sales was low inventory, and they could sell every shack that came to market.

    3. “Down from peak”

      I love how news articles insert that phrase like it’s been common knowledge all along. They deny a bubble for years, then suddenly – duh, everyone knows the bubble peaked a few months ago!

      And just like in Australia and Canada, confused Seattle newspaper readers ask over their morning coffee, “Wait, real estate can peak? And according to the headline, we’re PAST the peak??”

    1. Amazon learned the hard way the negative publicity/consequences of a trillion dollar company having a single HQ. Amazon is going to be a major employer in every major city in America in a few years. They’re hiring in Portland, San Diego, etc. Rumor is the “HQ2” was just a ruse to get data on cities so they know where to expand their offices.

      1. Sounds like they’re big enough to need a defense department contractor strategy. Make sure to create at least a few jobs in every district…

    2. When this “HQ2” stuff started, it sounded like Amazon was going to hire all those 50K people. But articles I’ve read recently talk about transfers. Presumably from Seattle? If that is Amazon’s plan, no wonder Seattle’s housing market is tanking.

    3. There are plenty of other tech industry companies that are expanding and forming in Seattle, so no, Amazon’s plans won’t have much of an impact.

      Back in March, Facebook had 2,000 employees in Seattle. As of October, it’s now 3,000. And that’s before they even open their new engineering center in Redmond that will have space for another 3,000.

  2. Oh dear. Despite the cooing of the REIC shills, this suggests something a lot worse than “normal seasonal softness” is going on – like, say, a bursting housing bubble.

    Inventory countywide jumped 86 percent among single-family homes and 188 percent among condos in October compared to a year prior, according to the Northwest Multiple Listing Service.

  3. “In Seattle, sales were down 17.5% year-over-year, and inventory was up 102% year-over-year.”

    TIMBERRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRRR

    1. Seattle was the hottest of the hot – just this past spring. Now they are a sawin’ and a slashin’ prices faster than any other metro? Why that’s exactly what a bursting bubble should look like. I wonder what Larry Yun would say?

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