Weekly wrap-up: peak craziness?
We need more listings than the 287 we saw last week because we heard and experienced so many stories it really feels like we’re at peak craziness right now:
- buyer used a $50k escalator *increment* (and had waived financing!)
- new construction home went for $1.83m. Identical home next door pending at $1.625m.
- A fairly priced 7-year old townhome received 12 offers (confidential to townhome developers: buyers want yards + garages)
- homes generally seem to be going 10-25% over their asking price when 5% over would likely be considered fair market value
It is the perfect storm of too many buyers, not enough homes for sale and pretty low interest rates. The NYT had a good piece on this, where have all the houses gone? (But sadly no Seattle data.)
To me it sure feels like early 2018 all over again which if you don’t recall changed dramatically after Memorial Day as interest rates ticked up and buyers realized they were paying way too much for homes. This year the tipping point will likely be around then as vaccinations enable a return to “normal”. Sellers shouldn’t underestimate buyers ability to get distracted with summer travel or the impact of increasing interest rates on buyers’ willingness to overpay.
Of those nearly 290 listings our faves included a custom remodel in West Seattle with pizza oven and pool, a midcentury on Mercer Island, a Burien midcentury and a Magnolia PNW contemporary. Looking for a cool loft? Here’s one in Pioneer Square or a modern corner unit at Veer.
Anyhow, no surprise we’ve been busy!
- We showed a client the Smith Tower Penthouse, renting for the first time in 20 years and now asking $17,000 a month.
- Our Ballard townhome listing at $800k blew up and is now pending over $900k
- A seller was holding our buyer’s feet to the fire on a close date so my assistant Marie got on a plane to SFO with just a few hours notice on a Sunday so we could pickup loan docs from a midnight notary appointment to ensure our clients closed on time (long story, but moral is – don’t use non-local lenders!)
- We checked out all the upcoming condo projects on the Eastside