WATERFRONT COUNTIES 2020 Q2 MARKET REPORT
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 are 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.
202O Q2 MARKET REPORT
MIKE GRADY COLDWELL BANKER BAIN PRESIDENT & COO
Reflecting on the first quarter numbers and the impacts of the COVID-19 outbreak on the market, Mike Grady, Coldwell Banker Bain President and COO, said, “Well the jet engines have started and our marketplace has accelerated. The constants remain the same as they’ve been for several years now… most namely, inventory, inventory, inventory. In fact, in most of our markets we’re seeing anywhere from 40−50 percent less than in the second quarter of 2019. There are a couple of markets— Ballard/Greenlake and downtown condos—that are not currently experiencing this trend. The latter is most likely a result of an uncertainty going forward on downtown commuting and how the Ballard/Greenlake area has been one of the hottest markets for years, so a slight increase now is not unexpected.
Median prices are escalating between 5 and 30 percent depending on the area, and while closed sales are down that’s because they reflect for the most part listings taken in the latter part of the quarter. We expect fireworks when the closed numbers come in for July. Our agents are reporting a lot of 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 take an early retirement. We hope that this trend may open up additional inventory in the Puget Sound region. Facilitation of virtual transactions is also becoming more common, with brokers reporting an increase in transactions that are handled 100 percent virtually—with the buyers purchasing the homes without ever personally stepping inside.”
2020 Q2 PACIFIC NORTHWEST MARKET REPORT
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202O Q2 MARKET REPORT
CHRIS MURPHY BROKER FOR COLDWELL BANKER BAIN TACOMA PROCTOR Chris Murphy, a broker in Coldwell Banker Bain of Tacoma Proctor, and author of washingtonwaterfronts.com, said “In the second quarter of 2020, the seven counties included in this analysis experienced a staggering 40 percent decrease in active waterfront inventory and a 38 percent decrease in sold waterfront properties. However, even with these significant decreases, the median price of sold waterfront homes stayed roughly flat with a 1 percent decrease. When the first quarter experienced a significant decrease (26 percent) in active listings and COVID-19 was beginning to greatly impact the real estate market, it was hard to imagine that inventory could get much lower. But it did, and in a big way. Each and every county analyzed in this report experienced significant double-digit declines in actively listed waterfront properties when comparing the second quarter of 2020 to 2019. With such a large decrease in inventory and the economic contraction resulting from COVID-19, one could assume that the number of sold waterfront properties would be significantly reduced, too. This assumption was accurate in April and May however
4 2020 Q2 PACIFIC NORTHWEST MARKET REPORT
this trend of limited sales was reversed in June, with transactions effectively doubling in quantity over the prior month. Despite the reduced number of sales in April and May, the proprietary website user data from WashingtonWaterfronts.com illustrates that demand for waterfront properties has never been higher. As mortgage interest rates continue to hover at alltime lows and COVID-19 continues to impact travel, residents of the greater Puget Sound are investing in vacation homes, generally within a three-hour drive of Seattle. As a result, nearly every waterfront buyer for whom we have submitted an offer has competed in a bidding war and not just for the most desirable locations and amenities. It is not uncommon for waterfront properties to sell for 10 percent higher than the list price and I have personally experienced the most desirable locations selling for more than 30 percent above the list price. Again, due to travel limitations, we anticipate waterfront inventory will stay exceptionally low, potentially through the end of 2020, and competition to stay fierce for waterfront properties that come on the market.�
WATERFRONT
SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY
KING / ISLAND / KITSAP / PIERCE / SKAGIT / SNOHOMISH / THURSTON / WHATCOM
MEDIAN SOLD PRICE (NEAREST $000)
AVERAGE DOM
King
106
$792K
Island
41
$848K
Kitsap
45
$670K
Pierce
62
$685K
Skagit
$568K
55
Snohomis
$565K
30
Thurston
24
$515K
Whatcom
$452K $400K
$400K
82 $600K
$800K
$1M
NUMBER OF SALES CLOSED 250
445
200 150
TOTAL SALES CLOSED
207
100 50
55
31
82
55
26
64
112
0
King
Island
Kitsap
Pierce
Skagit
INVENTORY IN UNITS / 06.30.2020
Snohomish
Thurston
Whatcom
TOTAL WATERFRONT INVENTORY / 568
31
207
55
82
26
55
27
112
-64.0%
-31.5%
-53.8%
-44.6%
-62.9%
-53.4%
-55.0%
-11.8%
King
Island
Kitsap
Pierce
Skagit
Snohomish
Thurston
Whatcom
2020 Q2 PACIFIC NORTHWEST MARKET REPORT
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WATERFRONT KI N G 2020
2019
CHANGE
TOTAL HOMES SOLD
208
291
-28.5%
MEDIAN SOLD PRICE
$848K
$785K
+8.0%
41
46
-10.9%
MEDIAN SOLD PRICE
96%
93%
+3.2%
UP +8.0% from 2019
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
48
57
-15.8%
MEDIAN SOLD PRICE
$792K
$769K
+3.0%
AVERAGE DAYS ON MARKET
106
66
+60.6%
MEDIAN SOLD PRICE
SOLD/LIST PRICE%
91%
95%
-4.2%
UP +3.0% from 2019
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
$848K
ISL AND 6 2020 Q2 PACIFIC NORTHWEST MARKET REPORT
$792K
WATERFRONT KITSAP
2020
2019
CHANGE
TOTAL HOMES SOLD
32
65
-50.8%
MEDIAN SOLD PRICE
$745K
$764K
-2.5%
78
65
+20.0%
MEDIAN SOLD PRICE
98%
98%
+0.0%
DOWN -2.5% from 2019
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
52
65
-5.3%
MEDIAN SOLD PRICE
$1.25M
$1.225M
+2.0%
80
84
-4.8%
MEDIAN SOLD PRICE
96%
98%
-2.0%
UP +2.0% from 2019
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
$745K PIERCE
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
$1.25M
2020 Q2 PACIFIC NORTHWEST MARKET REPORT
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WATERFRONT S KAGIT Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
96
150
-36.0%
MEDIAN SOLD PRICE
$540K
$492K
+9.8%
$540K
30
70
-57.1%
MEDIAN SOLD PRICE
98%
96%
+2.1%
UP +9.8% from 2019
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
321
411
-21.9%
MEDIAN SOLD PRICE
$449K
$448K
+0.2%
$449K
27
31
-12.9%
MEDIAN SOLD PRICE
99%
99%
+0.0%
UP +0.2% from 2019
AVERAGE DAYS ON MARKET SOLD/LIST PRICE% SNOHOMISH
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
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WATERFRONT THURSTO N
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
138
198
-30.3%
MEDIAN SOLD PRICE
$675K
$625K
+8.0%
$675K
14
21
-33.3%
MEDIAN SOLD PRICE
100%
100%
+0.0%
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
379
519
-16.7%
MEDIAN SOLD PRICE
$480K
$440K
+9.1%
$480K
15
19
-21.2%
MEDIAN SOLD PRICE
100%
100%
+0.0%
UP +9.1% from 2019
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
UP +8.0% from 2019
WHATCOM
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
2020 Q2 PACIFIC NORTHWEST MARKET REPORT
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*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.