We have not seen anything yet in Seattle. That blind and busted Greenwood house demanding $450,000? Mere chump change when compared to a San Francisco Bay Area house that's red tagged (meaning, you can't even live in it) because it's on a hill that's not yet done moving around. The house was nearly wiped out by a mudslide. Its future is uncertain. It's listed at $850,000.
And you can tell by the mood of the home's four bedrooms and three bathrooms, that it's really pissed about this price. If it weren't for that damn mudslide and its precarious position, it would have sold for a cold $1.5 million. It does not end there. If you buy this house (and it has drawn some interest), you also have to stabilize a whole hill. How much does that even cost? Repairs on the house alone are expected to be $300,000. The owner feels the price of the unlivable house is justified because "there is only so much real estate on the planet." Only a NIMBY sees the earth in that very restricted way.
Seattle, look at this sorry situation and think deeply about where we are headed. Housing should never reach the condition of complete madness.