SOUTH SOUND 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 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.
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.�
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 21
$470K
Bainbridge Island
40
$918K
21
$444K
Silverdale Gig Harbor & Key Peninsula
40
$547K
N. Tacoma, Lkwd. & Univ. Pl.
17
$425K
Puyallup & Graham
15
$405M $200K
$400K
$600K
$800K
$1.0M
NUMBER OF SALES CLOSED 800
4,260
700 600
778
TOTAL SALES CLOSED
500 400
282
619
Harbor & & GigGigHarbor Key Peninsula Key Peninsula
Tacoma, N.N.Tacoma, Lkwd. & Univ. Pl.
300 200
99
63
Bainbridge Bainbridge Island Island
Silverdale Silverdale
100 0
INVENTORY IN UNITS / 06.30.2020
1500 1200
Lkwd. & Univ. Pl.
Puyallup Puyallup & Graham & Graham
TOTAL SOUTH SOUND INVENTORY / 1504
54
17
171
171
196
-50.9%
-46.9%
-45.5%
-42.4%
-54.8%
Bainbridge Island
Silverdale
Gig Harbor & Key Peninsula
N. Tacoma, Lkwd. & Univ. Pl.
Puyallup & Graham
-47.3%
900 600
2020 Q2 PACIFIC NORTHWEST MARKET REPORT
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202O Q2 MARKET REPORT
STEPHANIE CALLEN BROKER AT COLDWELL BANKER BAIN PUYALLUP
“The demand is very strong and what little inventory Pierce County is lucky to get is scarfed up immediately by well-qualified buyers eager to be out of the buying frenzy. Homes are going for at or over list price and are all getting a great deal of activity,” said Stephanie Callen, a broker in the Coldwell Banker Bain of Puyallup office. “The median sold price is now $402,000, and is up 8.6 percent from the same time in 2019. However, the number of homes closed is down more than 22 percent, and the current inventory is also down more than 46 percent from last year at this time. Waterfront median prices for homes and condos is up 21 percent and the current inventory is down 41 percent year-overyear. Inventory in Puyallup and Graham is down almost 55 percent - and across the board in Pierce County the consecutive days on market is much lower. Areas like Tacoma are seeing
6 2020 Q2 PACIFIC NORTHWEST MARKET REPORT
only 15 days average on the market. There are lots of buyers, lots of multiple offers and TONS of showings. Gig Harbor’s median sold price is holding steady at $547,000 between last year and this year but its inventory is also down a whopping 45 percent since Q2 2019. The luxury market has had little change in price, with homes sold and current inventory down 20 percent. We had wanted to see a more balancing of the market in Pierce County and had hoped more sellers would decide to list their homes however most sellers can’t find a place to then buy themselves. Also, new construction has not been able to keep up with the demand and extreme shortage of homes in this area.”
SOUTH SOUND
SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY
LAKE TAPPS & BONNEY LAKE / SE KING COUNTY / SW KING COUNTY
AVERAGE DOM
MEDIAN SOLD PRICE (NEAREST $000) 800 700 600 & Lake Tapps Bonney500 Lake
31
$492K $512K
400 SE King County300
SW King 200 County
19 17
$480K
100
Condos
0
$272K
Bainbridge Island
Waterfront
Silverdale
Gig Harbor & Key Peninsula
N. Tacoma, Lkwd. & Univ. Pl.
17
Puyallup & Graham
$825K
(SF Only)
59
Luxury
$1.25M
($2+M | SF+C $200K
$400K
$600K
$800K
$1.0M
48
$1.2M
NUMBER OF SALES CLOSED 1500 1200
600
4,260
1259
900
TOTAL SALES CLOSED
54
300
-50.9%
17 783
377 171
-46.9%
-45.5%
171 2936 546
136
-42.4%
196
147 -54.8%
0
SE King SE King County County
Lake Tapps Lake Tapps & & Bonney Lake Bonney Lake
SW King SW King County County
INVENTORY IN UNITS / 03.31.2020
Condos Condos
Waterfront Waterfront (SF Only) Only) (SF
Luxury Luxury ($2+M || SF+C) ($2+M SF+C)
TOTAL SOUTH SOUND INVENTORY / 1504
-47.3%
448
271
176
244
113
237
-50.3%
-45.0%
-35.3%
-12.2%
-42.3%
-18.8%
SE King County
SW King County
Lake Tapps & Bonney Lake
Condos
Waterfront (SF Only)
Luxury ($2+M | SF+C)
2020 Q2 PACIFIC NORTHWEST MARKET REPORT
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SOUTH SOUND TOTA L SO UTH SO U N D A REA
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
4260
5655
-24.7%
MEDIAN SOLD PRICE
$470K
$435K
+8.0%
$470K
21
31
-32.3%
MEDIAN SOLD PRICE
100%
99%
+1.0%
UP +8.0% from 2019
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
546
752
-27.4%
MEDIAN SOLD PRICE
$272K
$263K
+3.4%
$272K
17
24
-29.2%
MEDIAN SOLD PRICE
100%
99%
+1.0%
AVERAGE DAYS ON MARKET SOLD/LIST PRICE% CON DOS
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
8 2019 ANNUAL PACIFIC NORTHWEST MARKET REPORT
UP +3.4% from 2019
SOUTH SOUND WATERFRO NT
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
136
166
-18.1%
MEDIAN SOLD PRICE
$825K
$730K
+13.0%
59
59
+0.0%
MEDIAN SOLD PRICE
95%
96%
-1.0%
UP +13.0% from 2019
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
147
185
-20.5%
MEDIAN SOLD PRICE
$1.25M
$1.233M
+2.2%
$1.25M
72
75
-4.00%
MEDIAN SOLD PRICE
93%
93%
+0.0%
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
$825K LU XU RY
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
DOWN +2.2% from 2018
2019 ANNUAL PACIFIC NORTHWEST MARKET REPORT
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SOUTH SOUND BA I N B RI DG E ISL A N D
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
99
134
-26.1%
MEDIAN SOLD PRICE
$918K
$982K
-6.5%
$918K
40
33
+21.2%
MEDIAN SOLD PRICE
98%
98%
+0.0%
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
63
76
-17.1%
MEDIAN SOLD PRICE
$444K
$408K
+8.8%
21
20
+5.0%
MEDIAN SOLD PRICE
101%
100%
+1.0%
UP +8.8% from 2019
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
UP -6.5% from 2019
S ILV ER DALE
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
10 2019 ANNUAL PACIFIC NORTHWEST MARKET REPORT
$444K
SOUTH SOUND G I G HA RB O R & KEY P EN I N SU L A
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
282
402
-29.9%
MEDIAN SOLD PRICE
$547K
$546K
+0.2%
40
53
-24.5%
MEDIAN SOLD PRICE
98%
98%
+0.0%
UP +0.2% from 2019
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
619
861
-28.1%
MEDIAN SOLD PRICE
$425K
$383K
+11.0%
$425K
17
22
-22.7%
MEDIAN SOLD PRICE
100%
100%
+0.0%
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
SOLD/LIST PRICE%
N . TACOMA , L AKEWO O D & UNI VERSITY P L ACE
AVERAGE DAYS ON MARKET
$547K
UP +11.0% from 2019
2019 ANNUAL PACIFIC NORTHWEST MARKET REPORT 11
SOUTH SOUND P UYA L L U P & G RA HA M
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
778
1027
-24.2%
MEDIAN SOLD PRICE
$405K
$369K
+9.8%
15
28
-46.4%
MEDIAN SOLD PRICE
101%
100%
+1.0%
UP +9.8% from 2019
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
377
458
-17.7%
MEDIAN SOLD PRICE
$492K
$457K
+7.7%
31
33
-6.1%
MEDIAN SOLD PRICE
101%
99%
+2.0%
UP +7.7% from 2019
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
$405K
L AKE TAPPS & BONNEY L A KE
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
12 2019 ANNUAL PACIFIC NORTHWEST MARKET REPORT
$492K
SOUTH SOUND SE KI N G C O U NTY
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
1259
1671
-24.7%
MEDIAN SOLD PRICE
$512K
$479K
+6.9%
19
31
-38.7%
MEDAIN SOLD PRICE
100%
99%
+1.0%
UP +6.9% from 2019
Q2 | 2020
Q2 | 2019
CHANGE
TOTAL HOMES SOLD
783
1026
-23.7%
MEDIAN SOLD PRICE
$480K
$450K
+6.7%
17
32
-46.9%
MEDIAN SOLD PRICE
101%
99%
+2.0%
UP +6.7% from 2019
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
$512K SW KIN G COU NTY
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
$480K 2019 ANNUAL PACIFIC NORTHWEST MARKET REPORT 13
*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.