WATERFRONT COUNTIES 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 & COO 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 WATERFRONT counties MARKET REPORT
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2020 ANNUAL MARKET REPORT
CHRIS MURPHY
BROKER FOR COLDWELL BANKER BAIN TACOMA PROCTOR the top two spots on the charts with more than a 19 percent increase in sold waterfront properties.
Chris Murphy, a broker with Coldwell Banker Bain of Tacoma Proctor, and author of washingtonwaterfronts.com, said “The waterfront real estate market in the greater Puget Sound experienced an extraordinary year in 2020. The first quarter gave us a hint of the competitive landscape that was forthcoming, but the demand for waterfront properties as a result of COVID-19 created an atmosphere in which almost every waterfront listing, priced relatively appropriately, received many competing offers with limited contingencies. The year concluded with the median waterfront inventory down 41.4 percent across the seven counties analyzed in this report, culminating in the fourth quarter with median waterfront inventory down 57 percent.
Although the median sold price of waterfront properties is a function of the waterfront listings offered for sale and not a precise indication of the degree of value appreciation for the waterfront market as a whole, it is still fascinating to note that the median sold price of waterfront properties increased nearly 17 percent. Similar to the number of sold waterfront properties, the peripheral Puget Sound counties experienced the greatest increase in median sold price with Snohomish and Whatcom Counties over 20 percent. Island County experienced the greatest increase of median sold price at nearly 27 percent!
Considering waterfront inventory was already lean in 2019, nearly halving the available listings produced a significant increase in the market value of waterfront properties. Another clear indicator of the immense demand for waterfront properties is the fact that, despite inventory being nearly cut in half, the number of sold waterfront properties increased approximately eight percent across the seven counties included in this report. Pierce County and Kitsap County captured
And 2021 is already off to an incredibly fast start. The proprietary web metrics we collect from WashingtonWaterfronts.com illustrates that demand is equivalent to what we would normally be experiencing in May – the heart of the high-selling season. We expect inventory to increase somewhat as the year progresses, but not much. And, with mortgage interest rates still hovering around all-time lows, demand should remain extremely high.”
4 2020 Annual WATERFRONT counties MARKET REPORT
waterfront
SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY
KING / ISLAND / KITSAP / PIERCE / SKAGIT / SNOHOMISH / THURSTON / WHATCOM
MEDIAN SOLD PRICE (NEAREST $000)
AVERAGE DOM
King
$830K
42
$836K
70
Island Kitsap
56
$751K
Pierce
51
$700K
Skagit
71
$635K
Snohomish
37
$600K
Thurston
40
$533K
Whatcom
69
$465K $200K
$400K
$800K
$600K
$1M
NUMBER OF SALES CLOSED 1200 1000 800
1029
600
461
378
400
206
447 242
153
200
359
0
King
Island
Kitsap
Pierce
Skagit
INVENTORY IN UNITS / 12.31.20
Snohomish
Thurston
Whatcom
TOTAL PUGET SOUND INVENTORY / 299
113
11
33
41
17
31
10
43
-23.6%
-72.5%
-41.1%
-50.6%
-45.2%
-34.0%
-67.7%
-53.3%
King
Island
Kitsap
Pierce
Skagit
Snohomish
Thurston
Whatcom
2020 Annual WATERFRONT counties MARKET REPORT
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WATERFRONT KING
2020
2019
CHANGE
TOTAL HOMES SOLD
1029
928
+10.9%
MEDIAN SOLD PRICE
$830K
$760K
+9.2%
42
57
-26.3%
97%
94%
+3.2%
2020
2019
CHANGE
TOTAL HOMES SOLD
206
192
+7.3%
MEDIAN SOLD PRICE
$836K
$677K
+23.5%
70
73
-4.1%
95%
95%
+0.0%
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
$830K
MEDIAN SOLD PRICE UP +9.2% from 2019
ISLAND
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
6 2020 Annual WATERFRONT counties MARKET REPORT
$836K
MEDIAN SOLD PRICE UP +23.5% from 2019
KITSAP
2020
2019
CHANGE
TOTAL HOMES SOLD
378
319
+18.5%
MEDIAN SOLD PRICE
$751K
$651K
+15.4%
56
65
-13.8%
96%
95%
+1.1%
2020
2019
CHANGE
TOTAL HOMES SOLD
461
445
+3.6%
MEDIAN SOLD PRICE
$700K
$600K
+16.7%
51
72
-29.2%
96%
93%
+3.2%
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
$751K
MEDIAN SOLD PRICE UP +15.4% from 2019
PIERCE
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
$700K
MEDIAN SOLD PRICE UP +16.7% from 2019
2020 Annual WATERFRONT counties MARKET REPORT
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WATERFRONT SKAGIT
2020
2019
CHANGE
TOTAL HOMES SOLD
153
141
+8.5%
MEDIAN SOLD PRICE
$635K
$525K
+21.0%
71
95
-25.3%
96%
94%
+2.1%
2020
2019
CHANGE
TOTAL HOMES SOLD
447
451
+0.9%
MEDIAN SOLD PRICE
$600K
$499K
+20.2%
37
54
-31.5%
98%
96%
+2.1%
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
$635K
MEDIAN SOLD PRICE UP +21.0% from 2019
SNOHOMISH
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
8 2020 Annual WATERFRONT counties MARKET REPORT
$600K MEDIAN SOLD PRICE UP +20.2% from 2019
THURSTON
2020
2019
CHANGE
TOTAL HOMES SOLD
242
218
+11.0%
MEDIAN SOLD PRICE
$533K
$497K
+7.2%
40
56
-26.8%
97%
95%
+2.1%
2020
2019
CHANGE
TOTAL HOMES SOLD
359
288
+24.7%
MEDIAN SOLD PRICE
$465K
$440K
+5.7%
69
79
-12.7%
97%
95%
+2.1%
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
$533K
MEDIAN SOLD PRICE UP +7.2% from 2019
WHATCOM
AVERAGE DAYS ON MARKET SOLD/LIST PRICE%
$465K
MEDIAN SOLD PRICE UP +5.7% from 2019
2020 Annual WATERFRONT counties 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.