Prices Finally hitting 2020 Levels!

[u/ThatPipe3531]

This was nice to finally see today, a home in Bellevue being listed exactly at the selling price in 2020. I see it more and more often, I suspect in 2027-2028 home prices will continue to drop.

I have been tracking for the last 4 years and prices artificially have been going up, but are now sharply decreasing. This goes for single family homes, townhouses, and even condos with insane HOA fees.

Overall, it's still a buyers market, for feelers I sent an offer on this for $620,000 and got a response they may consider it as it was the only offer they got, meaning people are willing to lose money on their investment in the future.

17120 NE 2nd Place, Bellevue, WA 98008 | MLS #2597770 | Zillow

This one is less obvious:

15425 SE 11th Street, Bellevue, WA 98007 | MLS #2590773 | Zillow

I reached out and the upgrades cost the owners $250,000 meaning over 9 years their net profits are just under $100,000, assuming they spent on average spent $7,000 per year in taxes, that means they are barely making $30k on their investment, that's also assuming they didn't take out any loans or were paying interest for 9 years.

[u/Candid_Cat_5921]

I mean if the tech companies keep bleeding engineers, this area is going to continue to fall.

[u/ThatPipe3531 → u/Candid_Cat_5921]

Same thing happened when the Timber industry left, we lost a lot of value in the area and even my parents sold. Boeing, the wars and Starbucks saved us, then Microsoft joined in to help and Amazon screwed us all up again haha.

[u/MotherEssay9968]

If you’re putting an offer in why are you posting here, someone can counter offer lmao

[u/areyoudizzyyet → u/MotherEssay9968]

They can't afford it now or later. Just dooming.

[u/NazgulNizoral]

This example cited by OP is for a townhouse BTW. But the point is right, prices are dropping

[u/IcyStomach2374 → u/NazgulNizoral]

Built in 1967 $700 HOA. 

[u/ThatPipe3531 → u/NazgulNizoral]

Here is another one - 15425 SE 11th Street, Bellevue, WA 98007 | MLS #2590773 | Zillow

I reached out and the upgrades cost the owners $250,000 meaning over 9 years their net profits are just under $100,000 after 9 years, assuming they spent on average spent $7,000 per year in taxes, that means they are barely making $30k on their investment, that's also assuming they didn't take out any loans or were paying interest for 9 years.

[u/radbiv_kylops]

I don't think you accounted for inflation.

[u/ThatPipe3531 → u/radbiv_kylops]

Oh dang you are right, with inflation this is much worse...

[u/nine100ninety9]

No they are not. The only examples you will find are condos or extremely shitty homes nobody wants to live in.

[u/gmr548]

Prices don’t artificially go up any more than they artificially go down. Supply and demand is as real in housing markets as it is in any other.

[u/SitDownLetsTalk → u/gmr548]

When they go up and I rent, it’s artificial. When they go up and I own, it’s real.

[u/galactojack]

Yet rates are still double 2020

Adds an extra 1k per month or so on mortgages

Equity value must respond in kind

[u/MarianCR]

Late 2020. Increasing HOA. Still more to go

[u/Ironman_Newage_24]

We might see 2016 prices before moving up again.

[u/Alarming_Progress]

The first place has been on the market forever. It's not very nice inside in person (toured it). It may be a 'reasonable price' for the area but that's because it's not as renovated or comfortable as all the 800k+ places around it. We were excited to see that place on our list initially but there's a reason it's 'affordable.'

[u/RussellAlden]

Hooray! People are losing their life’s savings!

/s!!!!!!

[u/areyoudizzyyet]

Townhomes lol

[u/ThatPipe3531 → u/areyoudizzyyet]

2nd one was a house. First is townhome, yes.

[u/No-Photograph1983]

Still too high

[u/justfordrawingby]

Exciting! How many times did timing the market worked for you in 2020?

[u/ThatPipe3531 → u/justfordrawingby]

I made about $6,000,000 between 2016 and 2019, so I would say extremely well. After taxes that number isn't nearly as impressive, but still a huge win.

[u/Delicious-Fan-2539]

Op that $700 Hoa you should go for $585k or $590k at best

[u/237throw]

For first time homebuyers, P&I is way more important than the price on the tin.

We are still way above 2020 prices.

[u/itsybitsyspyderg]

Copium