‘Brutal,’ ‘crazy’ housing market has Seattle-area homes selling half-million over asking price – ` 7 News Seattle

Seattle

SEATTLE — A wild housing market is forcing many home buyers in the Seattle area to pay $300,000 to $500,000 over asking price — in some cases nearly $1 million over asking price.

Homes are snapped up hours after they’re sold. Open houses attract so many people that there are queues on the street.

“It’s difficult as a buyer. It’s pretty brutal out there. It’s been tough for buyers for the past four years, but for the past 3-4 months it has truly felt like the toughest market we’ve ever navigated,” said Kendra Todd, real estate agent at Kendra Todd Group at Keller Williams . “It’s pretty common — especially on the East Side — for people to be $300,000, $400,000, $500,000 over list price.”

A quick search on Redfin reveals many examples. This Kirkland home was oversold for $500,000. This Bellevue home, listed at $1.5 million, sold for $2.4 million — about $900,000 over the asking price.

It’s a “brutal” housing market with almost no inventory in the Seattle area housing market, particularly on the Eastside.

This is the line to get to a Redmond Open House!

Million dollar homes regularly sell $500,000 above supply. I saw one sell over $900,000 in Bellevue. 😱 pic.twitter.com/qgEQ9AxmP6

— Deedee Sun (@DeedeeKIRO7) January 25, 2022

Todd, who has worked in Seattle real estate for 14 years, says she’s never seen anything like it.

“It’s just not normal. It’s not a balanced market,” Todd said. “It’s really a housing crisis in our area,” she said.

It makes homebuyers long and difficult experiences.

“It’s frustrating. It’s definitely frustrating,” said Zening Chen, a West Seattle resident. He and his fiancé are expecting and planning to move out of their current home in hopes of finding a house with fewer stairs that is better “The last house we bid on had 20 total bids with multiple people paying cash for everything. It’s crazy,” he said.

Steph Giola and her husband are also looking for an apartment. She said they are trying to play the game and are making bids hundreds of thousands over the asking price but are still bidding.

“It’s not even close. It’s 20 people making offers and they’re asking for more than half a million,” Giola said. “It’s exhausting knowing there’s only so much you can do,” she said.

“It’s competitive in a way I didn’t think was possible,” said Giola. “It’s definitely quite cutthroat and quite an experience,” she said.

Jeff Tucker, senior economist at Zillow, says there are a few reasons for what’s going on. He says one reason is that the surge in Omicron COVID-19 likely discouraged sellers from putting their homes on the market.

“If you go to Zillow, there are hardly any houses for sale of any type,” Tucker said. He said Zillow data showed that major cities with the most conservative responses to COVID-19 saw the largest declines in housing supply.

Tucker also points to interest rates. They have already skyrocketed this year and the Federal Reserve has indicated rates will continue to rise.

“This month in January, mortgage rates are up about half a point. In today’s world, that’s huge. So I think some people say I have to get off the sidelines and in before they go any higher,” Tucker said.

Contributing to the increased demand, people are simply looking for more space.

“Being in lockdown – how many years has it been? Really reminded us that maybe having a home office is more important than it was five years ago,” said Giola.

Tucker says we’re not in a housing bubble — it’s just supply and demand. But he adds that the surge in home prices will level off as interest rates rise and more people decide to sell in the warmer months.

Todd’s advice for homebuyers right now is to keep trying. She says the difficult conditions don’t necessarily mean it’s a bad time to buy, as house prices will continue to rise and higher interest rates will eat into potential homeowners’ purchasing power.

“Buy a house when it is the right time for you personally. If you plan on living in a house for five to seven years, you’re going to weather real estate cycles,” Todd said. “Don’t buy a house to buy a house – we still want you to love it. Be patient. You have to stay there, stick with it,” she said.