Eastside Area | 2020 Annual Report | Coldwell Banker Bain

EASTSIDE 2020 annual MARKET REPORT

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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.

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 EASTSIDE MARKET REPORT

3

202O ANNUAL MARKET REPORT

EJ BOWLDS

Principal Managing Broker of BELLEVUE “If one were to look at the Eastside real estate market for 2020 and not look at any other news stories for the year, they would never know we have been in a pandemic for 10 months,” said E.J. Bowlds, Principal Managing Broker of Coldwell Banker Bain of Bellevue. “All real estate is local, and the Seattle and Eastside areas enjoy a unique profile of burgeoning technology companies creating a relatively stable employment base. This growth in the tech sector and ancillary businesses has fueled a major construction boom. These facts, along with the lowest mortgage rates in history, have led area buyers to

feel confident enough to continue to purchase homes in spite of other distractions in their lives. Add in the fact that inventory, especially on the Eastside, is limited creates a perfect storm where our area is second only to Phoenix, Arizona in annual appreciation growth for the US, with Seattle metro coming in at about 9 percent appreciation slightly behind Phoenix at 10 percent.

The lack of inventory on the Eastside is notable. As of the first of the year there was only two weeks of inventory available. While the small numbers of homes and condominiums available to buy may partially represent a seasonal slowdown, we see no signs that inventory will grow substantially in the near future.

Let’s look at the numbers for the Eastside. The total number of homes sold last year was nearly 3 percent

4 2020 annual EASTSIDE MARKET REPORT

more than in 2019, 12,114 versus 12,461. The average sales price was up 7.5 percent which reinforces the 9 percent appreciation growth that was reported for the area. The average days on the market on the Eastside in 2020 was 24 days, down from 36 days in 2019. And the average sale in our area was at 100.6 percent of list price, so virtually everything sells over list price.

In the luxury market (over $2 million) average prices on the Eastside were up over five percent and average waterfront prices priced over $2 million were up over 20 percent.

What will 2021 look like on the Eastside? Experts all seem to agree that interest rates will stay at or near current low levels. The world seems to embrace technology more every day so Seattle’s technology giants will continue to grow. As the light rail system connecting the Eastside to Seattle gets closer to completion commercial growth along that corridor will continue to grow. Buyers’ confidence in the real estate market seems unthreatened.

And the low inventory/high demand squeeze will continue to push prices higher. Will the economic displacements of COVID eventually effect the economy? Yes, but that displacement seems at least several quarters in the future.”

eastside area

SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY

BELLEVUE / BOTHELL / CARNATION / CLYDE HILL / DUVALL / ISSAQUAH / KIRKLAND / MEDINA / MERCER ISLAND

MEDIAN SOLD PRICE (NEAREST $000) Eastside Area

AVERAGE DOM 25

$881K

Bellevue

25

$1.207M

20

$715K

Bothell Carnation

37

$750K

Clyde Hill

51

$2.61M

Duvall

21

$685K $921K

Issaquah Kirkland

26

$1.055M

23

Medina

$3.865M

53

$1.7M

Mercer Island $1M

68

$2M

$3M

$4M

NUMBER OF SALES CLOSED 2000

10,782 | TOTAL SALES CLOSED

1500

1709 1000

(TOTAL EASTSIDE AREA)

1301

626

500

1248 334

247

172

55

63

0

Bellevue

Bothell

3500 INVENTORY

Carnation

Clyde Hill

Duvall

IN UNITS / 12.31.2020

Issaquah

Kirkland

Medina

TOTAL EASTSIDE INVENTORY / 260

Mercer Island -63.5%

3000 2500 2000

36

20

3

10

3

19

36

10

12

-57.1%

-79.6%

-72.7%

+11.1%

-78.6%

-55.8%

-55.6%

-23.1%

-73.3%

Bothell

Carnation

Clyde Hill

Duvall

Issaquah

Kirkland

Medina

Mercer Island

1500Bellevue 1000 500

2020 annual EASTSIDE MARKET REPORT

5

202O ANNUAL MARKET REPORT

MIKE WINKLER

Principal Managing Broker of mercer island

Said Mike Winkler, Principal Managing Broker of Coldwell Banker Bain of Mercer Island, “There were 384 homes listed on Mercer Island in 2020 and 407 in 2019, a decrease of 5.65 percent. The number of active listings available on December 31st was also down from the standing inventory last year (12 vs 43). The standing inventory decline was consistent, albeit more dramatic, with the general area market. The average price for listed properties on Mercer Island through December of this year was up 14 percent, with

6 2020 annual EASTSIDE MARKET REPORT

the average list price in 2020 at $3.5 million and the 2019 price at $3 million.

The number of pending sales for 2020 was up 7.65 percent from 2019, and Mercer Island closed sales were up 6.67 percent, with 320 homes closing by the end of 2020.

Buyer demand and sellers trying to “time’ the market is part of the reason why Mercer Island realized an increase in closed sales and appreciation for 2020, and why we anticipate another increase for both in 2021.”

eastside area

SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY

NEWCASTLE / NORTH BEND / RENTON / REDMOND / SAMMAMISH / SNOQUALMIE / WOODINVILLE

MEDIAN SOLD PRICE (NEAREST $000)

AVERAGE DOM

$1.04M

Newcastle

33

$781K

North Bend

30

$1.0M

Redmond

23

$590K

Renton

24

2000

Sammamish

$1.115M

25

$803K

Snoqualmie 1500

18

$933K

Woodinville 1000

Condos

23

$468K

24

Waterfront

$1.298M

500 (SF Only)

48 $2.6M

Luxury

(SF Only) 0

$500K

$1M

$1.5M

$2M

$2.5M

54 $3M

NUMBER OF SALES CLOSED 3500 3000

10,782 | TOTAL SALES CLOSED

2500

(TOTAL EASTSIDE AREA)

3369

2000 1500

1049

938

1000 500

1623

394

170

298

821

556

340

0

Newcastle

North Bend

Redmond

Renton

Sammamish Snoqualmie

iNVENTORY IN UNITS / 12.31.2020

Woodinville

Condos

Waterfront

TOTAL EASTSIDE INVENTORY / 260

Luxury -63.5%

7

7

16

44

21

4

12

247

34

116

-41.7%

-83.3%

-63.6%

-59.6%

-66.7%

-50.0%

-66.7%

+33.5%

-40.4%

-32.6%

Newcastle

North Bend

Redmond

Renton

Sammamish

Snoqualmie

Woodinville

Condos

Waterfront

Luxury

2020 annual EASTSIDE MARKET REPORT

7

eastside area TOTAL EASTSIDE AREA

2020

2019

CHANGE

TOTAL HOMES SOLD

10,783

10,684

+0.9%

MEDIAN SOLD PRICE

$881K

$800K

+10.1%

25

41

-39.0%

100%

97%

+3.1%

2020

2019

CHANGE

TOTAL HOMES SOLD

3369

3275

+2.9%

MEDIAN SOLD PRICE

$480K

$445K

+7.9%

24

37

-35.1%

99%

98%

+1.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$881K

MEDIAN SOLD PRICE UP +10.1% from 2019

CONDOS

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

8 2020 annual EASTSIDE MARKET REPORT

$480K MEDIAN SOLD PRICE UP +7.9% from 2019

WATERFRONT

2020

2019

CHANGE

TOTAL HOMES SOLD

340

302

+12.6%

MEDIAN SOLD PRICE

$1.29M

$1.17M

+10.7%

48

62

-22.6%

97%

95%

+2.1%

2020

2019

CHANGE

TOTAL HOMES SOLD

821

623

+31.8%

MEDIAN SOLD PRICE

$2.60M

$2.55M

+2.0%

54

74

-27.0%

97%

95%

+2.1%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$1.29M MEDIAN SOLD PRICE UP +10.7% from 2019

LUXURY

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$2.6M

MEDIAN SOLD PRICE UP +2.0% from 2019

2020 annual EASTSIDE MARKET REPORT

9

eastside area BELLEVUE

2020

2019

CHANGE

TOTAL HOMES SOLD

1301

1254

+3.7%

MEDIAN SOLD PRICE

$1.207M

$1.113M

+8.4%

25

40

-37.5%

100%

97%

+3.1%

2020

2019

CHANGE

TOTAL HOMES SOLD

1709

1745

-2.1%

MEDIAN SOLD PRICE

$715K

$665K

+7.5%

20

37

-45.9%

101%

98%

+3.1%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$1.20M

MEDIAN SOLD PRICE UP +8.4% from 2019

BOTHELL

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

10 2020 annual EASTSIDE MARKET REPORT

$715K

MEDIAN SOLD PRICE UP +7.5% from 2019

CARNATION

2020

2019

CHANGE

TOTAL HOMES SOLD

172

126

+36.5%

MEDIAN SOLD PRICE

$750K

$659K

+7.5%

37

56

-33.9%

99%

97%

+2.1%

2020

2019

CHANGE

TOTAL HOMES SOLD

55

61

-9.8%

MEDIAN SOLD PRICE

$2.61M

$2.79M

-6.5%

51

69

-26.1%

97%

95%

+2.1%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$750K

MEDIAN SOLD PRICE UP +7.5% from 2019

CLYDE HILL

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$2.61M

MEDIAN SOLD PRICE DOWN -6.5% from 2019

2020 annual EASTSIDE MARKET REPORT 11

eastside area DUVALL

2020

2019

CHANGE

TOTAL HOMES SOLD

247

234

+5.6%

MEDIAN SOLD PRICE

$685K

$649K

+5.5%

21

38

-44.7%

100%

100%

+0.0%

2020

2019

CHANGE

TOTAL HOMES SOLD

626

616

+1.6%

MEDIAN SOLD PRICE

$921K

$851K

+8.2%

26

47

-44.7%

100%

97%

+3.1%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$685K

MEDIAN SOLD PRICE UP +5.5% from 2019

ISSAQUAH

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

12 2020 annual EASTSIDE MARKET REPORT

$921K

MEDIAN SOLD PRICE UP +8.2% from 2019

KIRKLAND

2020

2019

CHANGE

TOTAL HOMES SOLD

1246

1086

+14.9%

MEDIAN SOLD PRICE

$1.055M

$933K

+13.1%

23

37

-37.8%

100%

97%

+3.1%

2020

2019

CHANGE

TOTAL HOMES SOLD

63

50

+26.0%

MEDIAN SOLD PRICE

$3.865M

$2.835M

+36.3%

68

82

-17.1%

95%

95%

+0.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$1.05M MEDIAN SOLD PRICE UP +13.1% from 2019

MEDINA

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$3.86M MEDIAN SOLD PRICE UP +36.3% from 2019

2020 annual EASTSIDE MARKET REPORT 13

eastside area MERCER ISLAND

2020

2019

CHANGE

TOTAL HOMES SOLD

334

307

+8.8%

MEDIAN SOLD PRICE

$1.70M

$1.66M

+2.4%

53

57

-7.0%

98%

96%

+2.1%

2020

2019

CHANGE

TOTAL HOMES SOLD

170

153

+11.1%

MEDIAN SOLD PRICE

$1.04M

$900K

+15.6%

33

41

-19.5%

99%

97%

+2.1%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$1.70M MEDIAN SOLD PRICE UP +2.4% from 2019

NEWCASTLE

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

14 2020 annual EASTSIDE MARKET REPORT

$1.04M MEDIAN SOLD PRICE UP +15.6% from 2019

NORTH BEND

2020

2019

CHANGE

TOTAL HOMES SOLD

394

371

+6.2%

MEDIAN SOLD PRICE

$781K

$708K

+10.3%

30

42

-28.6%

103%

99%

+4.0%

2020

2019

CHANGE

TOTAL HOMES SOLD

938

954

-1.7%

MEDIAN SOLD PRICE

$1.0M

$960K

+4.2%

23

33

-30.3%

101%

99%

+2.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$781K

MEDIAN SOLD PRICE UP +10.3% from 2019

REDMOND

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$1.0M

MEDIAN SOLD PRICE UP +4.2% from 2019

2020 annual EASTSIDE MARKET REPORT 15

eastside area RENTON

2020

2019

CHANGE

TOTAL HOMES SOLD

1623

1773

-8.5%

MEDIAN SOLD PRICE

$590K

$545K

+8.3%

24

37

-35.1%

101%

98%

+3.1%

2020

2019

CHANGE

TOTAL HOMES SOLD

1049

1075

-2.4%

MEDIAN SOLD PRICE

$1.15M

$1.012M

+13.6%

25

49

-49.0%

101%

98%

+3.1%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$590K

MEDIAN SOLD PRICE UP +8.3% from 2019

SAMMAMISH

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

16 2020 annual EASTSIDE MARKET REPORT

$1.15M

MEDIAN SOLD PRICE UP +13.6% from 2019

SNOQUALMIE

2020

2019

CHANGE

TOTAL HOMES SOLD

298

280

+6.4%

MEDIAN SOLD PRICE

$803K

$724K

+10.9%

18

34

-47.1%

101%

98%

+3.1%

2020

2019

CHANGE

TOTAL HOMES SOLD

556

599

-7.2%

MEDIAN SOLD PRICE

$933K

$890K

+4.8%

23

48

-52.1%

100%

96%

+4.2%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$803K

MEDIAN SOLD PRICE UP +10.9% from 2019

WOODINVILLE

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$933K

MEDIAN SOLD PRICE UP +4.8% from 2019

2020 annual EASTSIDE MARKET REPORT 17

*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.