High Seattle Area Valuations Discourage Home Shoppers
The continuing skyrocketing cost of homeownership in the Seattle area has caused some home shoppers to give up hope, reports the Seattle Times. Even further out, in Snohomish, Pierce, and Kitsap counties, buyers were faced with home prices that had risen 10 percent from a year ago. In King County, home to Seattle itself, the median price was up 16.1 percent from a year ago. The 2017 summer buying season was especially strong in the local market, with the hottest ever month on record for both July and August.
Young buyers “can’t catch up”
“It’s gotten to the point where the reality of living in Seattle for us is really low,” Colin Perez, a married, 30-year-old tech work, told the newspaper. The article reports that Perez works in Seattle’s high-paying tech sector making “decent money,” but feels his family is falling further behind as it tries to save up. “Where do I have to be in my career in the Seattle market to be able to afford something?” he asked. “I’m 30 now; if I wait until I’m 40, is it even going to be affordable? You can’t catch up.”
“At this point, it’s looking unlikely that I’ll even be able to live in the Seattle area, where I grew up, and that’s frustrating,” Justin Baghai, a 25-year-old tech worker renting in the Ballard neighborhood of the city, told the news outlet. According to the article, Baghai attempted to buy a two-bedroom condo this summer with a maximum budget of $500,000. Even though he made an offer above its list price, he was outbid by $50,000 by a foreign investor.
Over 3,700 homes sold above $1 million price point
The article reports King County’s median list price now stands at $625,000, about $87,000 more than a year ago. The City of Seattle has a median price of $725,000 and the Eastside, across Lake Washington and home to Microsoft and other major employers, has a median price of $855,000. The article notes that more than 3,700 homes have sold for $1 million or more just this year, up 42 percent from last year and double the number of million-dollar homes two years ago.