Is the "Seattle Market Heating Up," like this King5 Report says?
A recent report on King5 news (link to video of news story here), based on a blogpost by Redfin's Glenn Kelman, says that the Seattle real estate market is heating up with multiple offers on several homes.
We can corroborate that this is playing out for some of our Matrix listings. For example, a Queen Anne Hill home listed by Matrix broker Steve Snider three weeks ago received nine offers in five days, escalating the final sales price by about $45K.
It's important to note that this is only happening in certain circumstances, not across the board, and the driver is simple economics. People don't want to list their home unless they have to, so there are not a lot of non-distressed single-family listings on the market. Some neighborhoods are tighter than others, one of those obviously being Queen Anne Hill. Another being high-end single-family homes in Bellevue that Ron Sparks of Coldwell Banker Bain talks about in the King5 report.
For other listings where there is still competition in the market this isn't happening yet because there is still competitive inventory which gives buyers more selection and keeps prices and urgency down. Like Ron Sparks says in the King5 video, there needs to be other buttons on the elevator besides plunge and soar.
Obviously we can't predict what will happen in coming months. But it would seem that with few builders jumping into the for-sale arena, existing new-home inventory decreasing, and new people moving into the Seattle market for work at hot employers like Amazon.com, it's only a matter of time before demand and prices level off and start to climb again.