Redmond Housing Market
I won a bid for 2.3Mil to get an estate home near Redmond Ridge (3800 sq ft) on a 1.35 acre lot. Great schools. Good commute. Worried that I overpaid for it and the market might not move much from here. Gave in and paid 25% above asking to get this. Is Redmond more like Cupertino in Bay Area and it won’t crash due to low supply and proximity to big tech or it will tank about 15% in the next two years? What do you guys think? PS: With everything that’s going on across the world, I am grateful to be in a position to even think about these things. Just wanted to ask for opinions and perspectives on this. Hope you all won’t take it the wrong way. #housing #redmond
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If you are planning to sell in 3/4 years it doesn’t make sense but if you want to keep long run it might be good 1) you have to pay 6 % commission 2) if you overpaid 25% then house prices should go up by at least 31 percent to break even. I recommend to consult an financial advisor or someone who can provide suggestions. Each individual is different and might have different opinions. Good luck.
That’s correct. One of the reasons why I pulled the plug was that I am getting a 2.1% rate. I am also hoping for a 50% increase in 10 years.
Fixed rate or ARM? Term length? I'm about to start mortgage shopping soon, so any advice would be appreciated
Home ownership is not dogecoin. I’m paying 17% over ask, but looking for 7-10 year gains to average around 6-8 percent, which I think would be pretty good, considering the mortgage rate of 2.625.
Also, Redmond will appreciate slower due to crap infrastructure (people are scared shitless of light rail), but less risky because of LWSD.
Interesting. What other cities will appreciate faster in the Seattle area? A lot of tech is moving to Redmond. SpaceX, Kuiper, AWS. I am betting more will open in Redmond since Bellevue is already taken.
What’s wrong about light rail?
Keep overbidding and regretting your decisions. It is like paying $2000 for TSLA stock and then claiming that it is okay because it will eventually go up. Congrats anyway
Thanks. I don’t regret my decision. Just asking for opinions and perspectives. Why so judgey, my friend?
Not judging you as a person but this housing market frenzy isn’t helping anyone
2.1%? How did you pull it op?
Oh. It’s for 10/1 ARM and I have preferential rate discounts of 0.25. So, it went down from 2.375 to 2.125. I do have the option of paying $10k and bringing it down to 2. Probably won’t do that
You should definitely get a 30 year fixed
To be honest with you, I'd be worried if you may want to move in 5 years. However, if you want to move to another position in Seattle area then you can continue living in the house. I believe that there would be more companies/teams based in bay area allowing remote work too. Also the risk depends on how much other assets you have. Are you spending all your money on the down payment or you have extra money invested in the market.
Yeah. Moving is something I like and would want that flexibility. You never know what life throws at you. In terms of other assets, I am putting 20% down. Have about 300k in cash and not touching any stocks (vested and unvested). So, I feel a bit safe on the budget front.
You didn't really answer the question. Besides the cash how much in your brokerage account) 401k.
Over bid 500k… that is crazy…
It’s the norm these days in the Redmond market. I sold my home a month back and some paid all cash 40% above asking. Also, in Bay Area, I am hearing 800k above asking on good homes. It’s such a rarity to find good homes with good floor plans in good Neighbourhoods.
Looks like you know the answer.. Redmond ridge has lot of land still waiting to sell from big home owners .. and Duvall is picking up .. it’s not rare site tho... did you sell the house in Redmond for > 40% then you know the market...
Redmond ridge is not Redmond..it's a suburb area on the hill with everything shutting down by 9pm. I think there is a QFC that's open 24x7 Also, you get lots of bear and other animal sightings. What you get is peaceful life with lots of greenery and good school for your kids. Yes, you paid a lot but it's an asset. It will appreciate slowly given the market is at it's peak. Welcome to Redmond
Thanks. I love Redmond Ridge.
Does it matter if you live there as your primary residence? It’ll be up in the long run. I bought last year in California for a similar price. It’s already up almost 10% but I’m here to live so doesn’t really matter in the end.
You are right. In the long run, it doesn’t. I would like to have the flexibility to sell probably after 3 or 4 years and move based on opportunities. Worried that I will get stuck if the house tanks.
It does because if it increases, you can get heloc to tap into equity