>>>
>>> WELCOME BACK. WE ARE WATCHING DOWNTOWN
SEATTLE FROM THE TOWER CAM.
EVERYBODY KNOWS THAT SEATTLE
HAS A HOT HOUSING MARKET BUT
OVER THE PAST SEVERAL WEEKS
THINGS HAVE TAKEN A TURN AND
NOW IT IS IN THE BUYERS FAVOR.
THAT IS A THING WE DON'T
USUALLY GET HERE.
HERE TO EXPLAIN IS MIKE
ROSENBERG.
ROSENBERG. >> THANK YOU FOR HAVING ME.
>> I ASSUME EVERYBODY WANTS
YOU TO HAVE A CRYSTAL BALL.
>> EVERYBODY SORTA WANTS TO
KNOW IS THE MARKET CRASHING OR
IS IT JUST TAKEN A BIT OF A
LULL.
LULL.
LULL. I
LULL. I DON'T THINK PEOPLE REALLY
KNOW UNTIL THE SPRING BECAUSE
THIS IS THE TIME OF YEAR THAT
THINGS SLOW DOWN ANYWAY.
IT'S BEEN GOING ON FOR ABOUT
SIX MONTHS I THINK IT WILL
PROBABLY CONTINUE FOR THE NEXT
FEW MONTHS.
FEW MONTHS. INSIST THE FIRST DROP WE HAVE
SEEN AND HOW MANY YEARS?
>> REALLY SINCE THE HOUSING
BUST.
BUST.
BUST. YOU
BUST. YOU HAVE TO GO BACK TO 2011 OH
2012.
2012.
2012. >>
2012. >> SOMEBODY THAT IS WANTING
RIGHT NOW THAT JUST PURCHASED
A HOUSE MAYBE SIX MONTHS AGO
AS A ALL MY.
-- IS SAYING OH MY.
.
.
. >>
. >> THIS
. >> THIS IS AN INTERACTIVE MAP
RIGHT HERE
RIGHT HERE >>
>>
>> >>
>> >> IS
>> >> IS THAT BECAUSE WE ARE IN A
BUBBLE AND IT'S GOING TO
TUMBLE DOWNHILL.
TUMBLE DOWNHILL. >> I THINK THERE ARE RATIONAL
REASONS WHY IT COULD BE
SLOWING DOWN.
SLOWING DOWN. WE HAVE INTEREST RATES GOING
UP AND IT'S FLATLINING.
THE THING THAT PEOPLE JUST
SORT OF GOT BURNT OUT.
THERE WERE SO MANY YEARS OF
INTENSE COMPETITION.
INTENSE COMPETITION. YOU HAVE TO GO WAY OVER ASKING
IF PEOPLE KEEP GETTING
HEARTBROKEN WHEN THEY MISS OUT
ON THE HOUSE.
SO THEY ARE KIND OF TAKING A
PAUSE AND NOW THEY ARE
STEPPING BACK TO SEE HOW FAR
IT CAN GO.
>> IS IT A GOOD TIME TO RENT
NOW?
NOW?
NOW? >>
NOW? >> IT IS PROBABLY THE COOLEST
RENTAL MARKET SINCE 2008 AND
2009 WHEN THINGS CRASHED DOWN.
RENTS OVER THE PAST YEAR.
>>
>>
>> >>
>> >> THAT IS AFTER RENT HAS GONE
UP ABOUT 50 OR 60% OVER THE
LAST FIVE OR SIX YEARS.
>> WE DO HAVE ONE THAT YOU
TWEETED OUT.
TWEETED OUT. >> IT IS A FIXER-UPPER BUT IT
IS HOW LOW WE HAVE SUNK THAT
THIS IS SOMETHING TO CELEBRATE
FOR BUYERS.
FOR BUYERS. A YEAR AGO IT WOULD HAVE BEEN
UNHEARD OF TO SEE A HOUSE YOU
CAN ACTUALLY MOVE INTO FOR
UNDER 300 GRAND.
>> HOW LONG DO YOU THINK
SOMETHING LIKE THIS WOULD STAY
ON THE MARKET.
>> IT WAS ON THE MARKET FOR
ABOUT 325 A FEW WEEKS AGO AND
THERE WERE NO BIDDERS.
IT WILL PROBABLY GET BOUGHT
BUT MAYBE ONE OR TWO PEOPLE
WILL BE INTERESTED IN IT.
THAT SORT OF HOW THE MARKET
IS.
IS.
IS. >>
IS. >> MAYBE MORE NOW.
YOU JUST GOT SOME GOOD
PUBLICITY.
PUBLICITY. I HEARD YOU ARE PRETTY FUNNY
ON TWITTER.
ON TWITTER. >> I DON'T KNOW ABOUT THAT.
>> I'M JUST LETTING YOU KNOW
THAT YOU HAVE A REPUTATION OF
BEING QUITE HILARIOUS.
>> TO YOU THE Q HAD ANYTHING
TO DO WITH AMAZON HEADQUARTERS
. DOES IT HAVE ANYTHING TO DO
WITH PEOPLE GETTING FREAKED
OUT?
OUT?
OUT? >>
OUT? >> AMAZON HAVE BEEN DRIVING
MOST OF THE HOUSING PRICE
INCREASES. CERTAINLY NOT ALL
OF IT BUT YOU GO FROM 5000 TO
45,000 WELL-PAID EMPLOYEES
WITHIN A SPAN OF FIVE YEARS
THAT WILL SHOOT HOUSING PRICES
WAY UP.
WAY UP.
WAY UP. NOW I THINK PEOPLE THAT WORK
IN AMAZON ARE WAITING TO SEE
IF THEY SHOULD MOVE TO THE
OTHER HEADQUARTERS OR SHOULD
THEY WAIT BECAUSE A HOME IS A
LONG-TERM DECISION.
LONG-TERM DECISION. IF YOU DON'T KNOW IF YOU ARE
GOING TO MOVE TO DC OR NEW
YORK DEPENDING WHERE THEY PUT
IT MAYBE IT'S NOT WORTH
PURCHASING A HOUSE.
>> AND WHAT ARE WE DOING
NATIONALLY IN SEATTLE COMPARED
TO THE REST OF THE COUNTRY?
>> WE ARE SO ONE OF THE MOST
EXPENSIVE PLACES IN THE
COUNTRY TO BUY A HOUSE OR TO
RENT BUT JUST IN THE LAST FEW
MONTHS WE HAVE ACTUALLY SEEN
PRICES DROP MORE THAN ANYWHERE
ELSE IN THE COUNTRY.
HAS REALLY BEEN A SUDDEN
TURNAROUND.
TURNAROUND. >> IT HAS BEEN A SUDDEN
TURNAROUND.
TURNAROUND. IS IT SOMETHING THAT YOU WERE
EXPECTING OR DIDN'T SURPRISE
YOU.
YOU.
YOU. >>
YOU. >> I
YOU. >> I THINK PEOPLE WERE
EXPECTING IT TO SLOW DOWN BUT
NOT LIKE THIS. THEY JUST SORT
OF HIT THE BRAKES ON THAT ONCE
AND WENT IN THE OPPOSITE
DIRECTION.
DIRECTION. I THINK THEY WERE EXPECTING IT
TO COOL A LITTLE MORE
GRADUALLY.
GRADUALLY. THAT MAY BE THE CASE THAT WE
ARE SORT OF HEADING TOWARD
THAT WAY AND IT MAY JUST BE
PROSPECTIVE BECAUSE IT WAS SO
HOT FOR SO LONG THAT ANY
CHANGE SORT OF LOOKS LIKE A
HUGE DIFFERENCE.
HUGE DIFFERENCE. >> HOW LONG DO YOU THINK IT
WILL CONTINUE.
WILL CONTINUE. >> DEFINITELY AT LEAST THROUGH
THE WINTER BECAUSE THAT IS
ALMOST ALWAYS HOW IT HAPPENS.
NEXT SPRING -- EACH MARCH AND
APRIL IS WHEN THINGS REALLY
START PICKING UP AGAIN