Given the trend of technology giants to relocate to, or open offices in, the Seattle area, it is no surprise that, as Alina Dizik from The Wall Street Journal (WSJ) reports, “real-estate prices for luxury properties close to downtown are up.” The article, “Seattle’s Luxury Homes Get a Tech Boom Boost,” cites Realogics Sotheby’s International Realty broker Carrie DeBuys, and describes that in especially sought-after neighborhoods, such as “Queen Anne, Madison Park, Washington Park and Capitol Hill,” increased demand and zoning requirements mean mostly single-family residential homes are available; and with low inventory, competitive offers are a requirement. DeBuys told WSJ  that because homes are going so quickly, “to make offers more competitive, many buyers are adding escalation clauses to their bids, which allows real-estate agents to automatically renegotiate to a higher price on their behalf if the bidding escalates,” a tactic DeBuys has found quite successful in Seattle’s current market.

The article also outlines a trend for wealthy buyers to purchase a larger piece of property, demolish the current home, and rebuild not only a home to live in, but other homes to sell. For instance, Ken Woolcott, “spent $2.3 million on a property in the leafy Queen Anne neighborhood and tore down its Frank Lloyd Wright-influenced home,” building a residence for himself in addition to two townhouses “to sell for investment purposes.” Investments that will likely garner high returns, given the anemic single-family residential inventory in these highly desirable neighborhoods.

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