The Boom That Broke the Bank: Seattle’s Real Estate Mania of 1909
As property values skyrocket and outside capitalists flood in, local dealers declare the market stronger than ever—ignoring the warning signs of a bubble.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
The total amount of real estate transfers to date during 1909 reaches $1,725,000. The list appended below shows for itself. The number of real estate transfers during the week past has been heavy, especially during Friday and Saturday, when the totals of sales were about one half as much as during the four preceding days. The aggregate for the week was a large one, a number of more than ordinarily large transfers having been made.
The real estate market may, with strict truth, be said to be stronger than it has been in the history of Seattle. Sales are made at increased prices, and they are largely to persons who buy with a view to improvement. Dealers are unanimous in testifying that there is now more outside inquiry about Seattle by capitalists and others who desire investment than there ever has been before.
One prominent dealer said yesterday he never saw the feeling so good as it is now. 'My firm is daily establishing communications with outside capitalists who have become interested in Seattle and who will invest here,' he stated. 'It is noticeable that men who are looking in this direction and who propose to send money here are those who build cities, not those who talk and do nothing. Our progress is the result of the natural development of the resources of this country, and we have hardly even begun.'
This 1909 account captures the exact moment Seattle’s economy shifted from a resource-based boom to a speculative land rush, mirroring modern housing crises where outside investment drives prices beyond local reach. The dealer's confidence that 'we have hardly even begun' echoes today's developer rhetoric, yet history shows such unchecked speculation often leads to sudden crashes, leaving ordinary residents priced out of the very neighborhoods they helped build.
From readers
No comments yet. If you know something about this story — a correction, a family memory, a source — it belongs here.