When I climbed into realtor Cherie Hasson's vehicle for a glimpse of the South End's highest and lowest priced homes, the contrast hit me like an early spring hop into Lake Washington when she handed me the Mapquest directions. Only 2.66 miles of Rainier Valley asphalt and an estimated eight minutes of prudent driving separated the area's top rung seller at $3.5 million from its bottom-of-the-ladder deal at $200,000.
With the local real estate market continuing to be more competitive than a high school track meet, I knew this tour would merely be a snapshot in time. However, looking at the type of homes people of wealthy to modest means are forced to choose from with an experienced realtor is an insightful exercise when trying to get a bead on what's driving the red-hot South End housing market.
Perched on top
According to Hasson, a successful and enthusiastically aggressive agent at the Mount Baker Windermere office, most of the upper-end homebuyers she sees are local folks who've amassed a lot of equity in their existing homes and are able to make a substantial down payment.
The $3.5 million gated home we went to look at was built in 1937 and sits on over an acre and a half of wooded land with a view of Lake Washington. With its swimming pool and country estate feel one would think the six-bedroom, six-and-a-half bathroom, 8,160 square foot Elizabeth Ayers designed home would not face much market pressure. Not so, according to Hasson.
"A lot of people think that if you go above the $800,000 price range there are no bidding wars and less competition, but it's completely untrue in the Seattle market," Hasson said.
Taking up the bottom
A very short jaunt across the valley and we were parked in front of a run-down home built in 1965 and sitting on a skinny half-acre lot. Despite the client-detail report's mention of needed "updating and minor repairs" to the 1,020-square-foot four-bedroom, one-bath home, Hasson indicated it could quickly go above its asking price.
"It's pretty ugly out there right now. There are bidding wars every single time," Hasson asserted. "The thing is, if a house comes on at $399,950, and these guys are approved at $400,000, they're not going to get it. You can have six people trying to buy the house. Someone's got to escalate [the price] at sometime. Agents can't even predict how much things are getting escalated at this point."
With such a quick turn over of housing stock, Hasson noted the result is an uplifting effect on the quality of the neighborhood with each new owner taking their turn to make improvements, especially in the South End.
"The people that are moving [down here] are urban pioneers," said Hasson, a Southeast Seattle resident. "They're people that are active, they appreciate the area for its flavor and diversity, but they're also trying to be part of the solution, not the problem. So they start block watch groups, they apply for traffic circles, they do whatever they can to get it nice."
With this in mind, Hasson doesn't see a near end to the present state of frenzied market buying.
"When the last person from Generation X closes on a deal, or when the rates go sky high, we'll be done," Hasson said. "I personally believe that's what it's going to take to balance this market out or make it soft again. It's total supply and demand. We've got too few houses for too many people that want to buy them."
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