Home Buyers Are Getting Destroyed In Seattle Area Bidding Wars!

Ever wondered what it takes to win a bidding war on Mercer Island? Join me, Aaron Morrow, as we unpack the Greater Seattle real estate market's heated competition and reveal invaluable strategies and insights. You'll learn about the significant 5% rise in home prices in the Puget Sound area, fueled by high demand and low inventory. Plus, we’ll break down the median sales prices and new listings across King, Pierce, and Snohomish counties, shedding light on the unique challenges and opportunities each region presents. 

In another engaging segment, I'll introduce you to my Seattle Real Estate Referral Program, designed to help you navigate the complexities of buying or selling homes locally while connecting those outside Seattle with trusted professionals. Whether you're tired of investors snatching up properties or struggling with multiple offer situations, this episode is brimming with practical advice and expert insights. Discover the importance of home ownership and explore how my program can support your real estate journey. Don't miss out on these essential updates and entertaining stories about the Greater Seattle housing market.

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Aaron Morrow Realtor Serving (King, Peirce, & Snohomish counties)
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Transcript

Speaker 1: 0:06

We lost. Oh God, I want you to imagine trying to buy a charming 1950s home on Mercer Island, only to find yourself in the midst of a fierce bidding war. That was an utter bloodbath. Imagine being lamb to the slaughter where, no matter how much effort and strategy you put into crafting the most compelling offer for a home buyer could muster for the seller, your efforts were in vain and the simple act of writing an offer was futile and you were left having to dust off the dirt and get back out there to bid on the next home that is going for hundreds of thousands above list price. Does this sound fun to you? What happened next will shock you. Stick around to find out all of the details at the end of this video. You won't want to miss it.

Speaker 1: 0:58

I'm Aaron Mauro and this will be your real estate market update report for the greater Seattle Washington area. Before we get into the market update, I want to know are you sick and tired of all of these investors buying up houses to either flip them for huge profits or rent them out? Who here is watching this now getting wrecked in multiple offer situations? Or are you an investor who is finding those profit margins shrinking? Come at me in the comments. I want to hear from you Now.

Speaker 1: 1:26

I'm going to get into my story in a bit regarding what happened to my home buyer who made an offer on this house right here on Mercer Island in Washington State. But right now we're going to be talking about what's going on with home prices in the greater Seattle area. So the median home price in the Puget Sound area has increased by about 5% compared to this time last year. While it's not the double-digit growth we saw a few years ago do any of you remember how crazy the real estate market was during the pandemic? 5% is still a solid appreciation, reflecting the strong demand in our local housing market. This trend plays a significant role in our Mercer Island story, so make sure to stick around. So, despite these rising home prices, the number of homes sold has remained steady.

Speaker 1: 2:13

Buyers are still very active and homes are selling relatively quickly. On average, homes are on the market for about 25 days before being sold. This slight increase in days on market suggests that buyers are taking a bit more time to make their decision, but demand remains high. Buyers are taking a bit more time to make their decision, but demand remains high. However, if you're looking to buy a home in certain areas of the greater Seattle area, like many parts of the Eastside, I have bad news for you. This many average days on market is not the case Like what is going on with Mercer Island in other parts of the Eastside such as Bellevue, washington, etc.

Speaker 1: 2:48

If any of you have been following my previous market updates, bellevue recently has been seeing multiple offer situations comparable to that what was going on in 2020 and 2021. There was one home that sold in the most bonkers bidding war I have ever seen and selling for almost 50% above list price. I'm going to quote Doctor Strange from the Marvel Cinematic Universe and say the bidding war was on a scale hitherto undreamt of. Did you seriously just say hitherto undreamt of? This kind of market activity sets the stage for the intense bidding war on Mercer Island. If you want to buy a home on the east side right now, be prepared to compete.

Speaker 1: 3:29

One of the biggest challenges continues to be low inventory. There's been a slight increase in new listings, but it's not enough to meet the demand. This low inventory is a major factor behind the sustained price growth we're seeing. This scarcity of homes was a crucial element in what happened with the Mercer Island property Again, story for later.

Speaker 1: 3:51

Now let's dive deeper into the market dynamics, shall we? Despite interest rates still holding steadier than William Wallace can hold his army in Braveheart? The demand for homes remains high. Closed sales have remained steady, which is a good indicator of market health. Let's break down the numbers down per the big three counties that make up the most of the greater Seattle area. Shameless plug.

Speaker 1: 4:16

These are the three main counties that I service both home buyers and home sellers in. So if you're looking for someone to help you buy or sell a home, I know a guy. In King County, the median sales price is now $875,000, with 3,439 new listings and 2,183 closed sales. For Pierce County, the median sales price is $552,250, with 1,383 new listings and 898 closed sales. And our third county, snohomish County, has a median sales price of 738,000, with 1,208 new listings and 861 closed sales. So what are the big takeaways from these numbers? What does it mean? Well, I am glad you asked. King County remains the most expensive, with high demand due to its central location and economic opportunities. Pierce County offers more affordable options, attracting a diverse group of buyers, including first-time home buyers and those looking to downsize. Snohomish County provides a middle ground in terms of pricing and lifestyle options.

Speaker 1: 5:30

So you remember that bidding war story that I baited you with in the beginning of the video, right? I mean, sorry, hooked you in to learn what had happened to my courageous home buyer that fought valiantly in that brutal bidding war that I had teased you in the beginning of this video. Okay, well, now it's story time. So earlier I had mentioned that I was working with some homebuyers who were eyeing this home on Mercer Island. It's a charming 1950s single-story home with a basement on 7,500 square foot lot. It was one of the few homes left on the block that hadn't been remodeled or rebuilt, surrounded by much larger, newer homes.

Speaker 1: 6:11

This house was listed at $1.35 million and quickly attracted several offers, sparking a bidding war. Many offers were all cash with no contingencies, meaning the buyers were committed and ready to close without any way to back out. Some buyers even offered large amounts of earnest money, like $50,000, making either non-refundable or flat out just releasing all of that cash to the seller immediately upon going under contract. Crazy, right, crazy, absolutely nuts. In the end, the house went to a buyer who offered $1,592,000 in cash with zero contingencies, closing. Within a few weeks the property was on the market for just seven days and sold for a whopping 17.93% above list price. My buyer, who offered somewhere in the middle of the pack, did not stand a chance. Sure, it was the best that they could do, but it wasn't good enough. Oh well, moving on, you can see the video here where I did a quick walkthrough of this very home. But don't you dare go and watch it until we're done watching this video, please.

Speaker 1: 7:22

Okay, so now I want to leave you all with some advice for you or if you know anyone who is trying to navigate the local greater Seattle area housing market right now. For homebuyers, be prepared for competition With low inventory and steady demand. It's crucial to have your financing in order to be ready to move quickly. However, right now is an excellent time to buy, because the competition is only going to get greater if interest rates do decrease. Competition is only going to get greater if interest rates do decrease.

Speaker 1: 7:54

Consider expanding your search to suburban areas where you might find more options, like going further down south into Pierce County or north into Snohomish County. Also, look for homes that have been on the market for a couple of weeks. They might present better opportunities with less competition. I know of a fantastic deal right now in the Kennedale area where a buyer might be able to buy this house for nearly a hundred thousand below list price just because it's been sitting on the market for the last 30 days, and have already spoken with the agent on what the seller is willing to go down to as far as his lowest. You also should probably make sure you are working with a realtor who has a solid strategy for sourcing and hunting for off-market deals for you, so that you might be able to avoid these multiple offer situations altogether. That's a good idea and for sellers it's a fantastic time to sell, especially if your home is in good condition and priced right. With many buyers still in the market, you can expect strong interest and potentially multiple offers, depending on where you are listing your property, located in the greater Seattle area.

Speaker 1: 9:00

Also, sellers consider getting a pre-inspection done to attract serious buyers and potentially avoid any contingencies, or at least the inspection contingency Another shameless plug. This is a strategy our team uses for all of our sellers. We typically pay for a home inspection up front for our sellers to be conducted on our houses and provide that to any buyer who takes a look and shows interest in your property so that either way, whether you have multiple offer situation or not, we can leverage that home inspection to make sure the home buyer that goes under contract with you has removed an inspection contingency from their offer. That said buyer is free to conduct a home inspection ahead of time prior to making an offer and or looking over the inspection report that we've provided to them and using that as their home inspection. It's just one of many strategies we provide to our sellers to make sure we get the right home buyer under contract on their property the first time around, and it can make all the difference to a successful sale and net more money for our sellers Sweet.

Speaker 1: 10:05

Lastly, for investors, the rental market remains strong, particularly in suburban areas where people are seeking more space. Investing in properties, especially those with modern amenities and energy efficient features, could be a solid move. The demand for rental properties continues to grow as more people seek flexible living arrangements. This trend was evident in the high demand for rental properties continues to grow as more people seek flexible living arrangements. This trend was evident in the high demand for the Mercer Island property. It's a bold strategy, cotton. Let's see if it pays off for them. Oh, and here's a bonus tip for you Always work with a knowledgeable realtor who understands the nuances of this market.

Speaker 1: 10:42

Whether you're buying, selling or investing, having a professional on your side can make a significant difference in your real estate journey. For example, a skilled realtor can help you navigate multiple offers, navigate better terms and identify potential issues before they become deal breakers. I really appreciate you being here. If you're new here, feel free to subscribe for more videos just like these. And if you like this video, feel free to subscribe for more videos just like these. And if you like this video, feel free to smash that like button Again.

Speaker 1: 11:10

If you're looking for a friendly neighborhood realtor to work with in the Greater Seattle area either buying or selling please reach out to me. Seriously, please reach out. And if you're outside of the Greater Seattle area and are looking for real estate help, I would love to refer you. Click the link below in the description box. I'd be happy to connect you with someone knowledgeable, kind and competent in your area. Quick reminder that you can check out all of my other helpful videos right here. I hope you found this video helpful today and maybe entertaining. Thank you for joining me to learn more about what's going on in the greater Seattle real estate market. Again, my name's Aaron Morrow, your friendly neighborhood realtor, and I'm here to teach you about the housing market, because home ownership should be for everyone. See you next time.