One of Seattle’s most expensive homes has been relisted on the market with a $15 million price cut – illustrating how even the most lavish homes are not immune from the cooling housing market.
The five-bedroom mansion in Hunts Point, a town on the eastern shore of Lake Washington, went on the market in spring 2022 for $85 million, but was taken off after it did not sell.
This summer, the luxurious home which is owned by Telecoms magnate Bruce McCaw and was prior to that by saxophonist Kenny G, was relisted for $70 million.
With more than 300 feet of Lake Washington shore, space to land a seaplane and a 150-feet yacht and a swimming pool and tennis court on more than four acres of land, the sprawling estate is the second-most expensive listing on the market in Western Washington, according to the Seattle Times.
‘Even though this home is singular… a trophy property and very unique, it’s still part of the housing market,’ Windermere listing agent Anna Riley told the outlet. ‘We had good interest before, but we expect we will have better interest at this price now.’
It comes amid a widespread cooling of the property market, sparked by rising mortgage rates. An average homebuyer is now facing mortgage payments nearly $1,000 per month more expensive than two years ago as interest rates hover around 7 percent.
Rising rates have sidelined buyers and prompted homeowners to ‘lock into’ their property to cling to cheaper mortgage deals.
Luxury real estate listings are more likely to sell to cash buyers who do not need to finance the property – shielding them from some of the effects of higher rates.
But even high-end homes like the Hunts Point mansion – which also boasts an in-home gym, cabana, and guest beach house – have been affected by the market cooldown.
‘Even cash buyers look at what other people are paying,’ Riley said. ‘If the market in general has come down, that can also affect the upper-end properties.’
However she added that properties at this level can take a couple of years to sell ‘because the buyer is already comfortable somewhere,’ and there is a much smaller pool of ultra-wealthy buyers.
The lakefront home is not the only luxury listing which has fallen in price in Washington.
Zillow estimates that values for the top 5 percent of homes in the Seattle area, averaging $2.5 million, were down 12 percent last month compared with a year earlier.
The most affordable homes, averaging $490,600, were down 2.5 percent in value in the same time period, while mid-price properties, averaging $704,600, dropped 6.5 percent in price.
The six-bedroom home of former Seattle Seahawks quarterback Russell Wilson has also had $2million cut from its listing price since last year.
The property in Bellevue – a city across Lake Washington from Seattle – hit the market in the spring of 2022 for $28 million and has since dropped to $26 million.
Windermere listing agent Carmen Gayton said high-end buyers are ‘just as cautious in this market.’
‘Their money may be tied up in stocks, bonds and real estate, just like everyone else’s money is,’ she added.
According to a Redfin report, sales of high-end properties in the US declined 44.6 percent year over year during the three months ending January 31, 2023.
In the same period, sales of luxury homes in the Seattle area dropped by 50.5 percent from a year earlier. Redfin defined luxury homes as those in the top 5 percent of a local market’s values, or $2.5 million in the Seattle area.
