Denice Jentlie | 2020 Annual Market Report

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SOUTH SOUND 2020 annual MARKET REP ORT

coldwellbankerbain.com


Helping people buy and sell homes in the Pacific Northwest since 1972, Coldwell Banker Bain is an undisputed market leader, posting nearly $6 billion in sales in 2019. With 32 offices and more than 1,300 brokers in Washington and Oregon, plus a global reach that extends to 92,000 brokers in 43 countries, we’re not only one of the largest Coldwell Banker affiliates in the world, we’re also the most accomplished real estate company in the Northwest. Our commitment to knowledge, expertise, and market insights consistently undergirds our reputation for excellence and service. An emphasis on global access in the luxury realm, combined with the power, reach and recognition of the Coldwell Banker brand, allows us to outsell and outperform our rivals, as we elevate the standard for marketing premier properties in the Puget Sound area and the Pacific Northwest. As important to us as business success— we also provide services in property management, commercial real estate, real estate investment and relocation management— is the understanding that real estate is more than just a transaction; it’s a key part of building safe, happy and prosperous lives for our clients, our brokers and their families.


2020 ANNUAL MARKET REPORT

MIKE GRADY

COLDWELL BANKER BAIN President & CEO Reflecting on the 2020 numbers and the interesting turn of the market in the fourth quarter, Mike Grady, Coldwell Banker Bain president and CEO, said, “It is amazing to look back over the roller coaster that 2020 became and see how well the real estate market was able to withstand a worldwide pandemic and a resulting faltering economy. We started off the year strong in the first quarter with inventory declining slowly to just more than a month’s on hand. Coldwell Banker Bain brokers were reporting that it ‘feels like 2017,’ with multiple offers returning to transactions, and review dates (where sellers identify a date to review all offers) being added to the mix because of the number of offers sellers were receiving. And we started to see double digit median price appreciation increases in Snohomish, Pierce and Kitsap counties, with King nudging back up to five percent over the same period in 2019. At the time, I publicly commented that ‘Unless something unexpected happens to affect the local job market, there’s no reason to think now that this trend will decline.’ And then the completely unexpected COVID-19 hit. As we adhered to lock-down mandates in our region, of course the market was impacted, although it could have been much worse. We saw a nearly 30 percent decline in Total Active Listings in April 2020, a significant decline, given that spring is typically one of the busiest times of the year. The upside continued to be the unequal supply/ demand dynamic, with more buyers than inventory, and so we continued to see impressive price appreciation increases in the largest four counties—a story that has not changed today.

As we responded to regulations related to continuing to serve our clients in a safe way, and leveraged our technology in ways we never anticipated, our market started to bounce back in June. We started to hear our brokers reporting substantial movement to—and diminishing inventory in outlying areas such as Bellingham, Bainbridge Island, Eastern Washington, Bend, OR and other recreational-type locations, given the ability to work from home or accept or decide on an early retirement. The fourth quarter reflected a continuation of this rebound well into autumn. Pending sales were up double digits in the four major counties as well as median prices. A slight decrease in inventory, to about three weeks on hand, puts sellers in a great position—we saw buyers snapping homes up almost as fast as they were listed. With interest rates at record lows and employment in major tech industries very strong, this was a good indication that we might skip the typical slower winter market altogether— and that indeed turned out to be true. We are optimistic about 2021 and expect it to be a very good year. All the economic forecasts for our industry are positive, and most are predicting 2021 to be a banner year. There’s a feeling of optimism because there are multiple vaccines in process of deployment, we have learned to thrive in challenging circumstances, there’s serious discussions about getting the kids back in school, the election is over, and interest rates are still at all-time lows.”

2020 annual SOUTH SOUND MARKET REPORT

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2020 ANNUAL MARKET REPORT

MICHAEL FLYNN

broker FOR coldwell banker bain tacoma

“Despite restrictions necessary for public safety during 2020, residential sales matched the number sold in Pierce County the year before, while buyer demand lifted prices more than 13 percent,” said Michael Flynn, a broker in the Coldwell Banker Bain of Tacoma office. “Last year the average price in Pierce County was $410,000; this year it is $467,000. The average price in North Tacoma, University Place and Lakewood is up to $502,000 and Gig Harbor’s average price is over $653,000. Puyallup is a bright spot for solid value with an average price of $442,000.

4 2020 annual SOUTH SOUND MARKET REPORT

Both in-migration and growing households brought new buyers to the market. A sharp drop in interest rates in the spring increased the purchasing power of first-time buyers as well as move-up buyers. Market times dropped to 25 days on average, though just a day or two in many cases. Sales activity is remarkably widespread, since homeoffice options let many buyers choose communities set apart from dense urban centers. Condominium sales prices rose 7.5 percent to $330,000. Single-family saltwaterfront properties sold last year, with 52 of those sales above $1 million.”


SOUTH SOUND

SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY

BAINBRIDGE ISLAND / SILVERDALE / GIG HARBOR & KEY PENINSULA / NORTH TACOMA, LAKEWOOD & UNIVERSITY PLACE / PUYALLUP & GRAHAM

MEDIAN SOLD PRICE (NEAREST $000) South Sound Area

AVERAGE DOM 24

$489K

Bainbridge Island

$1.099M

38

$450K

Silverdale Gig Harbor & Key Peninsula

20

$595K

N. Tacoma, Lkwd. & Univ. Pl. Puyallup & Graham $200K

42

$433K

18

$420K

19

$400K

$600K

$800K

$1.0M

$1.2M

NUMBER OF SALES CLOSED

19,909 | TOTAL SALES CLOSED

4000 3500

(TOTAL SOUTH SOUND AREA)

3000

3554

2500 2000

Lake Tapps 1500

& Bonney Lake

1000

SE King 500 County

476

296

0

SW King County

1473

2663

Gig Harbor & Key Peninsula

N. Tacoma, Lkwd. & Univ. Pl.

$500K

Bainbridge Island

Silverdale

$530K $490K

$285K

Condos

INVENTORY IN UNITS / 12.31.2020 Waterfront

TOTAL SOUTH SOUND INVENTORY / 594

$818K

(SF Only)

Luxury

($2+M | SF+C

Puyallup & Graham

23 -50.0%

$200K

11

$400K

-26.8%

59

$600K

$800K

-70.4%

$1.0M

73

$1.275M

$1.2M

-47.1%

-57.5%

81 -57.6%

7000 6000 5000 4000 3000

Bainbridge Island

Gig Harbor & Key Peninsula

Silverdale

N. Tacoma, Lkwd. & Univ. Pl.

Puyallup & Graham

2020 annual SOUTH SOUND MARKET REPORT

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2020 ANNUAL MARKET REPORT

DAVID KNODE

PRINCIPAL MANAGING BROKER FOR VANCOUVER EAST

“There is a line in a Grateful Dead song that I am sure many of you know... “What a Long Strange Trip It’s Been.” That line could easily summarize the real estate market in Clark and Cowlitz Counties in Southwest Washington for 2020,” said David Knode, Principal Managing Broker of Coldwell Banker Bain of Vancouver East. “With all the concern about COVID-19 and the everchanging requirements for how we needed to safely do business in our industry, we didn’t know if we were coming or going.” From a seller’s perspective 2020 was almost a utopia… median prices continued to rise through the year (up 9 percent in Clark County and 10.9 percent in Cowlitz), interest rates were at historical lows, there was a plethora of buyers looking in every price range and to top it off, there were historically low inventory levels that continued to drop month over month. In many cases this was the perfect time to sell. Even with the reduction

6 2020 annual SOUTH SOUND MARKET REPORT

of inventory, both Clark and Cowlitz Counties finished the year with an increase in the number of sales over 2019 by 4.9 percent and 9.5 percent, respectively. From a buyer’s perspective it was and continues to be a challenge. We are still experiencing multiple offers, many of which were for more than full price especially on listings under $400,000. There was a fevered pitch to utilize the low interest rates, and the market demanded quick action to secure a home. The number of days a home stayed on the market prior to receiving an offer dropped by 11.6 percent in Clark County and 13.2 percent in Cowlitz County. The future economic forecast for Southwest Washington is still strong and our area continues to experience an influx of people all of whom need housing. We hope that 2021 will see an increase of available homes to purchase; however, we believe that we are going to be in this sellers’ market for some time.”


Puyallup & Graham

$420K $200K

$400K

$600K

SOUTH SOUND

$800K

$1.0M

$1.2M

SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY

LAKE TAPPS & BONNEY LAKE / SE KING COUNTY / SW KING COUNTY

AVERAGE DOM

MEDIAN SOLD PRICE (NEAREST $000) 4000 3500

Lake 3000 Tapps & Bonney Lake

30

$500K

2500

$530K

SE King 2000 County

23

1500

SW King 1000 County

$490K

22

500

Condos

$285K

0

23

Waterfront

$818K

(SF Only)

49

Luxury

$1.275M

($2+M | SF+C $200K

$400K

$600K

$800K

$1.0M

57

$1.2M

NUMBER OF SALES CLOSED

19,909 | TOTAL SALES CLOSED

7000

6000

(TOTAL SOUTH SOUND AREA)

5000

2672

4000 3000

6051

1804

2936 710

3592

2000

816

1000 0

Lake Tapps & Bonney Lake TappsLake &

SE King County SE King

Bonney Lake

County

SW King County SW King County

INVENTORY IN UNITS / 12.31.2020

Condos Condos

Waterfront (SF Only) Waterfront (SF Only)

Luxury ($2+M Luxury | SF+C)

($2+M | SF+C)

TOTAL SOUTH SOUND INVENTORY / 594

-57.5%

63

160

124

140

55

117

-65.2%

-61.9%

-40.4%

-27.8%

-54.2%

-28.7%

SE King County

SW King County

Condos

Waterfront (SF Only)

Lake Tapps & Bonney Lake

Luxury ($2+M | SF+C)

2020 annual SOUTH SOUND MARKET REPORT

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SOUTH SOUND TOTAL SOUTH SOUND AREA

2020

2019

CHANGE

TOTAL HOMES SOLD

19,909

19,564

+1.8%

MEDIAN SOLD PRICE

$489K

$435K

+1.4%

24

36

-33.3%

100%

98%

+2.0%

2020

2019

CHANGE

TOTAL HOMES SOLD

2672

2524

+5.9%

MEDIAN SOLD PRICE

$285K

$258K

+10.5%

23

29

-20.7%

99%

99%

+0.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$489K

MEDIAN SOLD PRICE UP +12.4% from 2019

CONDOS

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

8 2020 annual SOUTH SOUND MARKET REPORT

$285K

MEDIAN SOLD PRICE UP +10.5% from 2019


WATERFRONT

2020

2019

CHANGE

TOTAL HOMES SOLD

710

629

+12.9%

MEDIAN SOLD PRICE

$818K

$675K

+21.2%

49

67

-26.9%

96%

95%

+1.1%

2020

2019

CHANGE

TOTAL HOMES SOLD

816

552

+47.8%

MEDIAN SOLD PRICE

$1.275M

$1.242M

+2.7%

57

72

-20.8%

97%

95%

+2.1%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$818K

MEDIAN SOLD PRICE UP +21.2% from 2019

LUXURY

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$1.27M MEDIAN SOLD PRICE UP +2.7% from 2019

2020 annual SOUTH SOUND MARKET REPORT

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SOUTH SOUND BAINBRIDGE ISLAND

2020

2019

CHANGE

TOTAL HOMES SOLD

476

391

+21.7%

MEDIAN SOLD PRICE

$1.09M

$920K

+9.7%

38

46

-17.4%

99%

96%

+3.1%

2020

2019

CHANGE

TOTAL HOMES SOLD

296

309

-4.2%

MEDIAN SOLD PRICE

$450K

$425K

+5.9%

20

34

-41.2%

101%

99%

+2.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$1.0M

MEDIAN SOLD PRICE UP +9.7% from 2019

SILVERDALE

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

10 2020 annual SOUTH SOUND MARKET REPORT

$450K MEDIAN SOLD PRICE UP +5.9% from 2019


GIG HARBOR & KEY PENINSULA

2019

CHANGE

TOTAL HOMES SOLD

1473

1372

+7.4%

MEDIAN SOLD PRICE

$595K

$529K

+12.5%

42

57

-26.3%

98%

97%

+1.0%

2020

2019

CHANGE

TOTAL HOMES SOLD

2633

2941

-9.59%

MEDIAN SOLD PRICE

$433K

$380K

+13.9%

18

29

-37.9%

101%

98%

+3.1%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$595K

MEDIAN SOLD PRICE UP +12.5% from 2019

N. TACOMA, LAKEWOOD & UNIVERSITY PLACE

2020

$433K

MEDIAN SOLD PRICE UP +13.9% from 2019

2020 annual SOUTH SOUND MARKET REPORT 11


SOUTH SOUND PUYALLUP & GRAHAM

2020

2019

CHANGE

TOTAL HOMES SOLD

3554

3551

+0.1%

MEDIAN SOLD PRICE

$420K

$375K

+12.0%

19

32

-40.6%

101%

99%

+2.0%

2020

2019

CHANGE

TOTAL HOMES SOLD

1804

1622

+11.2%

MEDIAN SOLD PRICE

$500K

$450K

+10.4%

30

38

-21.1%

101%

99%

+2.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$420K

MEDIAN SOLD PRICE UP +12.0% from 2019

LAKE TAPPS & BONNEY LAKE

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

12 2020 annual SOUTH SOUND MARKET REPORT

$500K MEDIAN SOLD PRICE UP +10.4% from 2019


SE KING COUNTY

2020

2019

CHANGE

TOTAL HOMES SOLD

6051

5871

+3.1%

MEDIAN SOLD PRICE

$530K

$480K

+10.4%

23

36

-36.31%

101%

98%

+3.1%

2020

2019

CHANGE

TOTAL HOMES SOLD

3592

3507

+2.4%

MEDIAN SOLD PRICE

$490K

$441K

+11.1%

22

37

-40.5%

100%

98%

+2.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$530K

MEDIAN SOLD PRICE UP +10.4% from 2019

SW KING COUNTY

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$490K MEDIAN SOLD PRICE UP +11.1% from 2019

2020 annual SOUTH SOUND MARKET REPORT 13


DENICE JENTLIE REALTOR ÂŽ | Certified Residential Specialist Accredited Buyers Representative | Relocation | Military Relocation Professional Coldwell Banker Bain | Kent Station 207 West Kent Station Street Suite 105 | Kent, WA 98032 Cell: (480) 628.8887 Office: (253) 850-5000 www.denicejentlie.com

*Information and statistics derived by CB Bain from the Northwest Multiple Listing Service (NWMLS), Regional Multiple Listing Service (RMLS) and the Multiple Listing Service of Central Oregon (MLSCO) each quarter. Statistics not compiled or published by the NWMLS, RMLS or MLSCO.


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