The eastside real estate market is alive and well (Seattle: for sale, 2014)

[shaylahc]

I was looking on realtor.com at houses and found one we really like. It's been on the market for 5 days. I emailed the realtor to ask if the house was still available for sale, and she said they have 3 offers already and are expecting several more She said the seller will be reviewing offers tomorrow at 5 p.m.

Coming from NC I still can't get used to the idea that a $550K house is a "bargain" I guess there is no need to worry about home prices dropping anytime soon.

FWIW this house backs up to a highway and is a fixer upper.

[mkarch]

Don't buy anything that backs up to a highway. Looking at sales records over the past few months, you can buy a decent property in west Bellevue for under $700K with no highway. Not easy to find, but you're better off not compromising on location and spending a bit more for a fixer - even a tiny one on a good lot.

Depending on the neighborhood, $550K in Bellevue is tear down territory because the lots out there are HUGE compared to Seattle. Bellevue, you can find level quarter acre lots for $500-$700K in older neighborhoods. Seattle? You'd have to buy 2-3 houses on the same block for $400K+ each or settle for something on a ravine to get that kind of acreage for under $700K.

[Hemlock140]

Here in Sammamish we continue to see homes sell in a week or less for over asking price. There is one that just went on the market near us earlier this week, we are waiting to see how quickly the sold sign goes up. As an olde neighborhood (1978-80) this 5 BR 3,000 SF should still be under $700k.

[Garfunkle524]

I wouldn't call it "alive and well" because of the lack of inventory. There's nothing out there right now so anything that goes on the market gets snatched up immediately at an inflated price.

It's frustrating for those of us who are trying to get into the market because there's so little movement. To me, a real estate market that's "alive and well" has the ability to offer competition to both buyer's and sellers. Right now I'd call it a major housing shortage.

I'm keeping my fingers crossed that this summer we will see a market that's alive and well, because it certainly hasn't been in a while.

[Ira500]

What Garfunkle said. Alive and well to whom? If prices are increasing at double digit rates, and inventory is very low, it's alive and well to sellers maybe, and seller's agents, but it's not balanced or healthy. Kind of like a baseball player who hits 50 home runs in a season, but the steroids might have played a part. A balanced market is one where there's supposed to be six months of inventory. Right now there's two.
There's always a real estate industry spin to everything. Right now they're saying that the reduced inventory means that the demand is so high that the supply can't meet it, that everybody wants to buy a house.
That's not exactly right. Lots of people bought houses in 2006-2007 and although we're close to being back to those levels in some parts of the Seattle area, many other parts of the Seattle area we're way below that. Also, wages haven't kept up with home price increases, so some home buyers who'd ordinarily be looking for a newer, bigger, fancier home currently can't afford it. At some point, there will be a big jump in inventory. But it doesn't look like it'll be in 2014.

[shaylahc]

I find it interesting that you can buy a brand new house in Bothell for LESS than what it would cost to buy an older, dated home (in the Bothell/Woodinville area). Not really sure why?

[Seacove]

Originally Posted by shaylahc

I find it interesting that you can buy a brand new house in Bothell for LESS than what it would cost to buy an older, dated home (in the Bothell/Woodinville area). Not really sure why?

Size of lot? I think there's so much more value in the older Woodinville homes that just need updating but are on acre lots. The new Bothell homes look great but the lots are small - some are 4-5000 sq. ft. Unfortunately, a lot of people feel that way and those older homes sell really fast, like this one, older but sold in one day:

http://www.redfin.com/WA/Woodinville...77/home/274373

Some are a quirkier and take longer:

18833 NE 183rd, Woodinville, WA 98077 | MLS# 589134 | Redfin

17837 182nd Ave NE, Woodinville, WA 98072 | MLS# 582691 | Redfin

This one's only a quarter acre but it's $469K

http://www.redfin.com/WA/Woodinville...72/home/270329

This one is only $413K on an acre but built in 1940 and smaller

15810 NE 175th St, Woodinville, WA 98072 | MLS# 594559 | Redfin

[mkarch]

Originally Posted by shaylahc

I find it interesting that you can buy a brand new house in Bothell for LESS than what it would cost to buy an older, dated home (in the Bothell/Woodinville area). Not really sure why?

The areas of Bothell with the most new construction tend to be in the Snohomish County part and stretch into less convenient locations. Much north of Canyon Park is cut off from 405 because there are no freeway interchanges between there and Lynnwood. That section is kind of hit and miss. Some areas are just a jumbled mishmash of houses packed in next to one another with not much in the way of parks or shopping. Some of the sections you can drive for miles through a sea of homes and not find so much as a convenience store. I was out there a few weeks ago and dumbfounded that they added thousands of new houses without even a 7-11 let alone a small shopping center. I think that contributes to the awful traffic around Canyon Park and Thrashers Corner - you have to approach the massive clogged 8-10 lane Bothell Everett Highway just to pick up a gallon of milk! Planning? Doesn't look like it.

Woodinville also imposed a building moratorium during the housing bubble so that area didn't add as many new houses or 'out of character' subdivisions crammed in to mess the place up.