‘Everybody chilling’: Gee and Ursula break down Seattle’s nation-leading drop in pending home sales

Pending home sales in Seattle plunged in September, and KIRO host Gee Scott said the reason is simple: Buyers and sellers are both waiting the other out.

Seattle had the biggest year-over-year drop in pending sales among major U.S. metros, at 24.4%. Los Angeles was next at 16%, according to Redfin.

On “The Gee and Ursula Show” on KIRO Newsradio, KIRO host Ursula Reutin explained that buyers face mortgage rates above 7%, high prices, and a shakier job market, so many of them are walking away. At the same time, sellers aren’t eager to cut their prices, especially if they locked in a much cheaper mortgage a few years ago.

“You got sellers chilling. You got buyers chilling,” Gee said. “Everybody chilling.”

Gee blames locked-in rates and layoffs for stalled home sales

Gee thinks many sellers either don’t want to give up a 2% or 3% mortgage rate or aren’t willing to accept less than they think their home is worth.

“These buyers are wanting for less. Nah, I’ma sit and chill,” he said.

Meanwhile, buyers are worried about job security.

“The buyers right now are like, man, have we seen the job market?” Gee said. “Every time I turn on ‘The Gee and Ursula Show,’ they’re always talking about more layoffs.”

He argued that the tech industry, which helped drive up Seattle home prices, is now creating the uncertainty that’s keeping buyers on the sidelines.

Redfin also pointed to the job market, saying Seattle is expensive and a bumpy local job market is curbing demand.

Ursula regrets checking her home’s value

Ursula has no plans to sell, but she admitted she checked her home’s value anyway. With the cost of her sewer project still climbing on top of a recent remodel, she wondered whether all that work was worth the money.

“I made the mistake of looking, and I say mistake because I have no plans of leaving,” Ursula said. “I have no plans of selling.

“I have this sewage project from hell that the price tag keeps going up, and we had that recent remodel,” she continued. “And I look at it, and I ask, ‘Is it still worth it? Have we put way too much money into this home?’ And looking at it, I mean, the value has gone down.”

Gee said Seattle homes are still worth a lot.

“In Seattle, look here. You’re still almost talking about $1 million, y’all,” he said.

Gee: Seattle still beats Idaho on home prices

Gee had a message for people who criticize Washington’s politics: Home values here are still higher than in Idaho.

“I know people always talk about, ‘Hey, I can’t believe you guys vote for all of these Democratic policies,'” Gee said. “But I tell you what, them home prices are higher than they are in the state of Idaho.”

Ursula noted that Idaho is where many frustrated Washingtonians said they’ll move.

“A lot of times people will say, ‘I’m out of here. I’m moving to Idaho,’” she said.

Watch the full discussion in the video above.

Listen to Gee and Ursula on “The Gee and Ursula Show” weekday mornings from 9 a.m. to 12 p.m. on KIRO Newsradio.