Supply and Demand (and Seattle Real Estate)

Every Monday I get a “sneak peek” tour of new listings in my office.  This week I went to properties in West Seattle, Pinehurst and Wallingford that were about to come on the market.  One home was listed for $539,000 on Wallingford avenue (near Julia’s —- yum!).  My first reaction to the home was “cute but overpriced”.  That street is awfully busy and it would take a particular buyer to pay that price for the noisy location.  In addition the top floor had a funky layout and the kitchen needed an overhaul.  I figured it would be on the market for some time…

Wrong!  They received an offer the day after it listed.  I spoke with the listing agent (friend of mine in the office) and he agreed the listing was overpriced as well (side note:  agents can give their opinion on price but it’s the seller that decides what it lists for). 

I recently had a buyer in this price point looking in Wallingford and Greenlake and let me tell you, inventory is slim pickings!    Such a small supply means a lot of buyers out there are having to wait for homes to come on the market, and are even willing to overpay for them to beat out the competition.

So when you’re reading about the real estate market and how it’s doing.  be sure to ask “which market”?  Looking at the national market can only tell you generalities.  Even analyzing the Seattle market as a whole can be tricky.

In general, the market for homes in central Seattle neighborhoods (like Wallingford) listed under $550,000 could very well be a seller’s market right now.  Multiple offers and minimal days on market are not uncommon, in fact they’re becoming the status quo.  This isn’t true of condos and high-end, which will be hurting for a while, but overall inventory is way down.  Supply and demand!  If you’re looking in that price point, be ready to move quickly and don’t hesitate to make your offer, albeit a low one, if you’re in love.  Who knows, the house could be gone in a day!