East King County Prices Falling

Scotsman

I've been looking to move to the Preston/Fall City area for a year or two, and watching prices. In the last 6 months not much has been selling- and now prices are finally starting to come down.

The first home was originally listed for $650k- now it's a short sale at $499k. Ouch!

http://www.johnlscott.com/propertydetai ... D=30816676

This second home also originally list for $650k after a poorly planned spec remodel and flip. It's still on the market- for $450 or offer. They only acknowledge the last $100K in price reductions.

http://www.johnlscott.com/propertydetai ... D=29962783

When prices are back to their 2002 levels I'll think about buying. Many have stated that prices will fall first in the out-lying areas. That sure seems to be the case now.

Alan

Thanks, Scotsman.

Lake Hills Renter

Thanks for the report, Scotsman. That's the area I am interested in as well. I'm not in a hurry though, so I can wait for prices to come back down to within reason.

Alan

It is interesting that both of those homes are still listed over $100k what the owner paid for them.

rudekick

The same is true in Snoqualmie. I've been tracking sales and price reductions - nothing's selling and there are some pretty massive price reductions. (This is exacerbated, of course, by the fact that there is a huge amount of new construction out there that is going to continue into 2010 I believe.)

Markor

Scotsman wrote:

The first home was originally listed for $650k- now it's a short sale at $499k. Ouch!

There's no way these were ever worth $650K. Nice size parcels, but close to the freeway and not in a neighborhood means they'd probably have topped out at $500K in their current state of condition. The sellers were shooting for the moon.

Scotsman

The scary part is that up through last winter similar homes were selling for the higher asking prices. It really started to die out here in the Spring, with very few sales closing, and only then on a couple of properties that were relatively exceptional and obvious buys. Since then- nothing. In the last couple of months a number of listings have been pulled, with no sale. I guess the sellers hope things will improve first part of next year. I think they'll be sorry they didn't try harder, and were more aggressive, now.

Here's another- started at $500K, quickly dropped to $440K where it sat for some time. Now $399K and vacant.

http://www.johnlscott.com/propertydetai ... D=31029880

ellsworth

7807 288TH AVE SE, Issaquah, WA 98027 (27079417)
10/3/2007 $450,000 148 Days on Market
9/6/2007 $465,000 121 Days on Market
8/15/2007 $485,000 99 Days on Market
8/6/2007 $499,000 90 Days on Market
7/18/2007 $515,000 71 Days on Market
5/30/2007 $524,000 22 Days on Market
5/17/2007 $539,900 9 Days on Market
5/8/2007 $549,900 0 Days on Market


29318 SE Preston Way Preston, WA 98027 (27166215)
10/31/2007 499,950 44 Days on Market
10/30/2007 539,950 43 Days on Market
10/24/2007 539,950 43 Days on Market
9/28/2007 539,950 17 Days on Market
9/11/2007 549,950 0 Days on Market
9/11/2007 449,950 0 Days on Market

01/01/07 629,000 97 Days on Market
11/17/06 629,000 53 Days on Market
09/25/06 659,000 0 Days on Market

Markor

A house in May Valley house in Issaquah (on the south side of Squak Mtn., MLS # 27136084) dropped from $650K in the spring to $530K lately, where it finally went STI (or contingent; I see both). Five price drops in all. It's 2150 sq. ft. on a shy acre on a hillside in a neighborhood of custom homes. I think it was way too high originally (a house across the street sold then for $641K in one day, but its land is level and it's better updated) and $530K might be the right price now, or else the buyer saved $30K or so by ignoring how long the house was on the market. I think the house could have sold quickly in the spring if it had been priced at $590K or so.

Scotsman

This will be interesting. New house on the market, very high-end, brand new, $225 a square foot.

http://www.johnlscott.com/propertydetai ... D=31105711

Meanwhile, my favorite has raised his price back up from $450 to $520!!!
I looked in the window the other day and you can see how uneven the floors are!

http://www.johnlscott.com/propertydetai ... D=29962783

Meanwhile, here's another that just reduced price, from $750 originally down to $698. But how does that compare to the first new house? I'll bet there will be further reductions after everyone sees the listing for the new home!

http://www.johnlscott.com/propertydetai ... D=30453803

Follow the market down...

Markor

On the last one, I wouldn't buy anything in the flood plain of the appropriately-named Raging River. It ate a house in the last flood.

Doesn't $/sq. ft. generally decrease as sq. footage increases, all else being equal? Maybe $/sq. ft. can be comparable apples-to-apples only for houses of about the same sq. footage.

Scotsman

This is too funny- if you can't sell it for $450K, raise the price to $520K. Still not selling? Rent it for $2,000/month!

http://seattle.craigslist.org/est/apa/476596029.html

Alan

I love the mental image created by these two quotes from that ad.

Possible equestrian property?

Call about pets... we prefer no pets but possible case by case situation.

perfectfire

Alan, I think I know why they're iffy on animals but are ok with horses. They probably want the renter to bring pink ponies to boost the house's selling potential.

Also,

Security Deposit: $2000/mo.

:shock:

Scotsman

Guess they couldn't rent it- now on Craigslist for $429k! But, but, they made this "flipping" look so easy on HGTV!! (Originally $650,000)

http://seattle.craigslist.org/est/rfs/488163543.html

Alan

This was purchased in 9/2006 for $300k.

Scotsman

I looked at it when it first came up for sale- it wasn't much more than a cabin at the end of a mud road. They guy has put a lot of effort, and I assume money, into this project. Unfortunately, it was poorly planned from the beginning. The front door is virtually unchanged, and looks like the entrance to a chicken coop. The roof line sags, the floors are uneven, the layout is what you'd expect- a cabin/pig with a lot of poorly applied lipstick.
I actually feel sorry for the seller. At somewhere around $375K the thing may sell, and hopefully he'll get most of his money back. But this is a perfect example of the truth that there's more to being successful in real estate than just granite and stainless steel!

Scotsman

First tried to rent it for $2,000/mo. Now down to $1795/mo. Worth $1500/mo?

http://seattle.craigslist.org/est/apa/488156726.html

Scotsman

Yup. Now reduced to $1550/month. I'm starting to feel sorry for this guy.

http://seattle.craigslist.org/est/apa/508110441.html

acurawsu

I live in the same neighborhood as this house:

16437 NE 16th Pl
Bellevue, WA 98008
MLS# 27125772

It has been on the market over a year, before that it was a rental ($1,400/mo)
The house was originally listed for 405k, they have dropped it a few times, and it is now down to 380k. They started with Re/Max, and have pulled/reposed the listing a few times to try and keep the "Days on market" under 120.

I know it can rent for $1,400 so I did some quick math, and figured I could break even if I paid around 210k.

So I used redfin to submit an offer for $210k. I was half expecting the seller to just ignore me. But they came back saying that they would consider an offer around 320k. This is still much more than the house is worth in my mind. However, given the fact that they started asking 405k, and are now willing to consider 320k, shows that opportunities on the eastside are out there if you look around enough.

perfectfire

acurawsu wrote:

16437 NE 16th Pl
Bellevue, WA 98008
MLS# 27125772

I think 1,400/month is a bit high for that house in that area.

Those are some truly awe-inspiring pictures.

uwp

acurawsu wrote:

I live in the same neighborhood as this house:
I know it can rent for $1,400 so I did some quick math, and figured I could break even if I paid around 210k.

So I used redfin to submit an offer for $210k. I was half expecting the seller to just ignore me. But they came back saying that they would consider an offer around 320k. This is still much more than the house is worth in my mind. However, given the fact that they started asking 405k, and are now willing to consider 320k, shows that opportunities on the eastside are out there if you look around enough.

But, but but... all those super-great realtors on the PI blog told us if we submit an offer more than 10% lower than asking price we would offend the seller and never even get a chance to get into a bidding war.

carlislematthew

uwp wrote:

acurawsu wrote:

I live in the same neighborhood as this house:
I know it can rent for $1,400 so I did some quick math, and figured I could break even if I paid around 210k.

So I used redfin to submit an offer for $210k. I was half expecting the seller to just ignore me. But they came back saying that they would consider an offer around 320k. This is still much more than the house is worth in my mind. However, given the fact that they started asking 405k, and are now willing to consider 320k, shows that opportunities on the eastside are out there if you look around enough.

But, but but... all those super-great realtors on the PI blog told us if we submit an offer more than 10% lower than asking price we would offend the seller and never even get a chance to get into a bidding war.

Personally, I think it's great that people go out and make massive low balls through RedFin. The quicker the sellers "get real" and lower prices, the quicker they'll make a sale. If they're willing to take 320, they should not be listing for 380. They should list at 340 and let someone think they got a bargain at 320. Ultimately, that house is a piece of shit and it's tiny, so I'm sure 320 is too high anyway. Price per sq ft just doesn't work out.

The more properties that sell at lower prices, the lower the comps will be, and the lower future listing prices will be. At some point, we'll be affordable again and sales volumes will rise. This would be a good thing. A healthy market for all, except those who had to foreclose and return to the supposed indignity of renting of course...

Scotsman

Started at $328, then $300, then $285, now $275.

http://www.johnlscott.com/propertydetai ... D=30827702

This is in the little town of Preston, which was pretty hot for some time- but not now. $250?

Bought 2/06 for $257. Looks like he's gonna take a loss after expenses.

I though houses only went up?

Scotsman

Price reduced again, $400K FSBO.

http://seattle.craigslist.org/est/rfs/534694957.html

carlislematthew

"At somewhere around $375K the thing may sell"

Scotsman, this is what you said back in November of last year. We'll see if you were right! Their craigslist ad stinks of desperation, so I wouldn't be surprised if they took something way under 400K.

Scotsman

The saga of my favorite flip has come to an end. This is the home on 188th. The house sold, through a Realtor, for $380,000. Seller paid $300,000 for it in '06, completely redid the house inside and out, built a new free-standing 2 car garage, etc. The original asking price was briefly $595,000, spent a lot of time at $569,000, then started the long slide down. After commissions, taxes, carrying costs, etc. $380,000 has got to be a good sized loss. Ouch!