I did find a small house (750 sq ft or so?) for sale right now at a mere $400k in Seattle city limits. One of those post-war single-story four-squares, which... I don't know if you have. I've seen Kentucky postwar saltboxes, they're similar in idea but quite different in style.

(This excludes bankruptcy/short-sale mortgage houses, which have indeterminate value.)

I'm from Seattle and I don't live in city limits anymore. :/ On a major transit corridor, though, which helps. (But I really miss being in town...)