Yes but less so. The greatest impact to the houseing market in the past year has been the changes to the mortgage industry. Many zero down and no doc loans have gone away, but this has little effect on those that are looking in the million + range. Still, fear is fear and many buyers in all ranges are choosing to sit on the sidelines. So there will be some effect but less then in the 300-600 price range.

This really depends on where in the Seattle area you are...with our transportation infrastructure (more properly, the lack thereof) homes close in will command a premium over the same size/style home requiring a far-flung commute. You see that today with high-end luxury homes in remote communities compared to inner-city Seattle or downtown Bellevue.

The high-end market is not affected as much. And like the answers below, it depends on if it was over-priced in the first place. We have a builder that over prices from the "get-go" expecting to sell in a yr or 2. But for the most part, high end has not been affected.

http://online.wsj.com/public/resources/documents/info-houseI…
Check out this recent WSJ article regarding the national market. Also, as there isn't a good regional weather forecast for the "Seattle market' there isn't an overarching answer for your question either. What is the neighborhood, the condition of the home, etc. A good realtor will be able do do a good comparative market analysis and give you a better answer.

The short answer is yes. If and by how much depends on where the house is. Some areas that don't turn over very often will still be in high demand. Areas with a glut of homes priced above $1.5M will be the ones most affected. Also depends on how realistic the $1.5M asking price is in the first place.

Last year, even while the market was still strong, many $1.5M and $1.4M houses didn't sell at all because they should have been listed at $1.2M or $1.3M tops on the Eastside.

Right now I'm seeing the premiums cut by $50,000 to $75,000 lacking two buyers or more in some areas of Seattle. Especially choppy floor plans like tudors. 2 out of 10 homes will still bid out. Another 2 out of ten will sell at asking price within 30 days. 6 out of ten will be affected from flat to down. The most obsolete flow plans will be the ones to suffer as to value, and often tudors fall into that range.

Style of home and location will become much more important than in the past 3-4 years. Fewer buyers means they will hold out for the best locations and floor plans.