Comments on: Seattle in Top Ten for Continued Appreciation- Want to know Why? http://raincityguide.com/2006/04/07/seattle-in-top-ten-for-continued-appreciation-want-to-know-why/ Seattle's Leading Resource for Real Estate Information Sat, 20 Mar 2010 16:58:13 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: ARDELL http://raincityguide.com/2006/04/07/seattle-in-top-ten-for-continued-appreciation-want-to-know-why/#comment-305735 ARDELL Fri, 11 Apr 2008 20:42:53 +0000 http://raincityguide.com/2006/04/07/seattle-in-top-ten-for-continued-appreciation-want-to-know-why/#comment-305735 Gary, Hopefully Eileen will stop by, but I thought I should point out that Seattle is NOT "late to the party". It is a completely DIFFERENT "party". We are not experiencing what the rest of the Country experienced for the last couple of years. We never made it to THAT party. The new downcycle is that of subprime woe and lending being tightened. That will create a new down cylce on top of the previous one for the rest of the country, and the first one for us. What has happened since August of 2007 is not the same as what happened around the country prior to that, and no one...no one, will escape the effect of the mortgage changes, except cash markets. Gary,

Hopefully Eileen will stop by, but I thought I should point out that Seattle is NOT “late to the party”. It is a completely DIFFERENT “party”.

We are not experiencing what the rest of the Country experienced for the last couple of years. We never made it to THAT party. The new downcycle is that of subprime woe and lending being tightened. That will create a new down cylce on top of the previous one for the rest of the country, and the first one for us.

What has happened since August of 2007 is not the same as what happened around the country prior to that, and no one…no one, will escape the effect of the mortgage changes, except cash markets.

]]> By: Gary http://raincityguide.com/2006/04/07/seattle-in-top-ten-for-continued-appreciation-want-to-know-why/#comment-305720 Gary Fri, 11 Apr 2008 20:19:04 +0000 http://raincityguide.com/2006/04/07/seattle-in-top-ten-for-continued-appreciation-want-to-know-why/#comment-305720 I wonder, two years later, if she still thinks the same thing. While Seattle may be late to the party, NWMLS is showing a far different story for March of 2008. Welcome to the collapsing bubble I wonder, two years later, if she still thinks the same thing. While Seattle may be late to the party, NWMLS is showing a far different story for March of 2008.

Welcome to the collapsing bubble

]]> By: Mark Ondrake, MBA, real estate investor, ex stock broker http://raincityguide.com/2006/04/07/seattle-in-top-ten-for-continued-appreciation-want-to-know-why/#comment-10710 Mark Ondrake, MBA, real estate investor, ex stock broker Sat, 05 Aug 2006 05:05:22 +0000 http://raincityguide.com/2006/04/07/seattle-in-top-ten-for-continued-appreciation-want-to-know-why/#comment-10710 Q ) Why does Seattle real estate keep rising ? A) 50,000 Seattle owners of MSFT stock have been selling their shares for the past 6 years, and they have been buying nicer and larger houses with the proceeds. Since the MSFT stock continues to fall or stay flat, these owners cut their losses and shift to the best asset in a time of inflation : Real estate. It's quite simple. Since management at MSFT already has their millions or billions of dollars, they no longer care about the stock. However, the 50,000 other owners of the stock must recoup their 40-50-60% loss of capital. (depending on when they bought MSFT ). Note: Even MSFT repurchase of shares does not help, since their liability from stock options is still quite massive. MSFT capital will continue to flee to Seattle real estate for the next several years, maybe longer. Indeed, this shift from an unstable stock to brick and mortar is changing the nature of wealth in our region : The message is : Get on the train ( buy a house NOW ) before it leaves the station ! When our average house price hits $800,000 like San Francisco, appreciation will flatten out and capital will move elsewhere. Q ) Why does Seattle real estate keep rising ?

A) 50,000 Seattle owners of MSFT stock have been selling their shares for the past 6 years, and they have been buying nicer and larger houses with the proceeds.
Since the MSFT stock continues to fall or stay flat, these owners cut their losses and shift to the best asset in a time of inflation :
Real estate.
It’s quite simple. Since management at MSFT already has their millions or billions of dollars, they no longer care about the stock.
However, the 50,000 other owners of the stock must recoup their 40-50-60% loss of capital. (depending on when they bought MSFT ).
Note: Even MSFT repurchase of shares does not help, since their liability from stock options is still quite massive.
MSFT capital will continue to flee to Seattle real estate for the next several years, maybe longer. Indeed, this shift from an unstable stock to brick and mortar is changing the nature of wealth in our region :
The message is : Get on the train ( buy a house NOW ) before it leaves the station ! When our average house price hits $800,000 like San Francisco, appreciation will flatten out and capital will move elsewhere.

]]> By: Eileen http://raincityguide.com/2006/04/07/seattle-in-top-ten-for-continued-appreciation-want-to-know-why/#comment-4355 Eileen Fri, 07 Apr 2006 22:19:23 +0000 http://raincityguide.com/2006/04/07/seattle-in-top-ten-for-continued-appreciation-want-to-know-why/#comment-4355 Don't forget, though, that the commute is one of the key factors in buying a home.Buyers continue to try to buy in Monroe or Auburn and many many eventually move closer in because of the 1-1.5 hour commute. It's always been $100,000's cheaper in Pierce County and we haven't seen any major exodus there. Don’t forget, though, that the commute is one of the key factors in buying a home.Buyers continue to try to buy in Monroe or Auburn and many many eventually move closer in because of the 1-1.5 hour commute. It’s always been $100,000’s cheaper in Pierce County and we haven’t seen any major exodus there.

]]> By: Eric http://raincityguide.com/2006/04/07/seattle-in-top-ten-for-continued-appreciation-want-to-know-why/#comment-4353 Eric Fri, 07 Apr 2006 21:33:06 +0000 http://raincityguide.com/2006/04/07/seattle-in-top-ten-for-continued-appreciation-want-to-know-why/#comment-4353 I don't think the numbers were exactly stellar. King county pending sales are down 8% heading into the Spring selling season. Inventory in Pierce, Kitsap, Snonomish, Skagit and Thurston are also all experiencing significant inventory growth and a drop in pending sales. If the suburban counties continue slowing it's only a matter of time before people look outside King county for good bargains.. I don’t think the numbers were exactly stellar. King county pending sales are down 8% heading into the Spring selling season. Inventory in Pierce, Kitsap, Snonomish, Skagit and Thurston are also all experiencing significant inventory growth and a drop in pending sales. If the suburban counties continue slowing it’s only a matter of time before people look outside King county for good bargains..

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