2016 Q3 Market Report

Page 1

PACIFIC NORTHWEST Q3 2016 MARKET REPORT Portland Oregon Puget Sound Southwest Washington


VDB Estates : Advantage in the Marketplace Mark von der Burg is highly regarded as one of the most qualified experts in residential real estate in the Pacific Northwest. For more than twenty-eight years, Mark has built his reputation representing Luxury Estates, Urban Homes, and Waterfront Properties. With sales over $110,000,000 in 2016, he is once again in the top 0.5% of agents nationwide, the second leading Realtor in the Northwest, and Coldwell Banker Bain’s #1 Realtor.

As the founder of VDB Estates, Mark has assembled an extremely capable team of talented professionals who work tirelessly providing exceptional client services. Skilled in their field, they constantly review, adjust, and redevelop various aspects of the business to get the best results. Specialties include Photography, Cinematography, Creative Writing, Staging, Graphic Design, Marketing, Social Media, International Business, Listing/Transaction Management, and Escrow. The team’s success is attributed to expertise, powerful resources and a well-executed, structured plan. Performing from a position of strength, VDB Estates continues to be Coldwell Banker Bain’s #1 Team year after year.

Mark von der Burg | Luxury Division Director


ABOUT COLDWELL BANKER BAIN | SEAL

Coldwell Banker Bain | Seal is the 17th largest

affiliate out of 3,000 offices in 49 countries. The

real estate company in the country, helping

company operates as Coldwell Banker Bain

people buy and sell homes in the Pacific

in Western Washington and Coldwell Banker

Northwest since 1972. With 1000+ brokers in 31

Seal in the Portland/Vancouver metropolitan

offices throughout Washington and Oregon, the

area, also providing services in property

company provides the full spectrum of services

management, commercial real estate and real

to buyers and sellers, with special expertise in

estate investment, and relocation management.

the luxury realm. Additionally, the company has

Coldwell Banker Bain | Seal consistently

once again earned the national

ranks among the Top 20 Real Estate

Coldwell

Chairman’s

Companies in the nation as cited by

Circle designation for outstanding

Real Trends and RIS Media’s Real

performance in volume for 2015,

Estate. For more information, visit:

ranking as a number one network

www.coldwellbankerbain.com

Banker

www.coldwellbankerseal.com

PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


THIRD QUARTER NUMBERS

“We continue to see an extremely active market, but with a notable distinction now when comparing the Seattle market with the Eastside…. Seattle inventory is up by 15.6% over the same time last year but the Eastside is at -12.6%. And when we look closer at the Eastside numbers we see that the core (Bellevue, Kirkland, Mercer Island) all have plus inventories compared to last year’s 3rd quarter, but as you move away from that core the other sub-markets are experiencing shrinking inventory. That is even more radically the case as one moves northward into the North Sound market further from the core, showing a dramatic reduction of inventory compared to 2015.”

“It is also interesting to look at the source of this disparity when comparing Seattle to the Eastside – certainly one of them is condos. We see that 28% of the Seattle area sold properties were condos, yet 30% of the inventory is condos – this spells oversupply. And when you look at the Eastside, 23% of the sold properties were condos yet only 17% of the current inventory is in condos, meaning that market has an undersupply. Both of these trends are most likely a result of our region’s continued hot job market, most specifically related to Eastside tech companies.” Mike Grady, CB Bain President and COO

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2016


EASTSIDE AREA Bellevue Bothell Duvall/Carnation Kirkland Issaquah/Sammamish Mercer Island Redmond Woodinville

3rd Quarter 2016 Single Family & Condo Average Sold Price

(Nearest $000)

$884,000

Total Eastside Area

“Bellevue’s real estate market remained very healthy in the third quarter, despite a continuing squeeze on inventory. Our average single-family home price of $1,071,000 was up 5.6% over third quarter last year. Properly priced homes in good condition continued to generate multiple offers. Unit sales were off 4.4% from third quarter 2015—again a result of tight inventory.

$1,071,000

Bellevue Bothell

$543,000

Duvall | Carnation

$538,000

Kirkland

$867,000

Issaquah | Sammamish

$894,000 $1,658,000

Mercer Island Redmond

$809,000

Woodinville

$755,000

The uptick we saw in late-summer inventory is not a comment on there being too few buyers. Rather, it’s a comment on a trend we’ve seen for a few years running: many sellers are bringing their homes to market 2-3 months past peak buyer demand. Hence the higher inventory at the end of the quarter.” Thadine Bak, Principal Managing Broker - Bellevue

Area Condos $403,000

$1,544,000

Waterfront (SF Only) Luxury ($2+M | SF + Condo)

$2,936,000

$0K

$500K

1000

$1000K

$1500K

$2000K

$2500K

$3000K

Number of Sales Closed

800

2683 812

Total Eastside Sales Closed

600 400

575

200 0

29

553

452 133

109

334

147

127

181

Bellevue

Bothell

Duvall | Carnation

Kirkland

Issaquah | Sammamish

Mercer Island

Redmond

Woodinville

Area Condos Only

Area Waterfront (SF only)

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

19

18

28

27

27

35

18

25

24

51

55

110

93

274

150

79

-21.1%

-15.0%

-22.4% 3.3%

16.8%

Average Days on Market Current Inventory in Units

Total Eastside Area

1313

366

200

-12.6% 9.4%

188

61

-36.2%

-2.9%

140

214

78

-5.1% 14.5%

60.5% Change over third quarter 2015

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2016


SEATTLE AREA Ballard | Green Lake Capitol Hill Madison Park Magnolia NE Seattle Seattle Central South Lake Union | Queen Anne West Seattle

3rd Quarter 2016 Single Family & Condo Average Sold Price

(Nearest $000)

$838,000

Seattle Area

$730,000

Ballard | Green Lake

“Unique to Madison Park when compared to other Seattle area markets is the continued constriction of inventory in 2016, with a -3.7% change over the same quarter last year. That said, buyers’ interest in upper-end homes has not waned. Even with the inventory challenges, over 30% of the listings sold in Q3 were for over $1.5 million.”

$1,009,000

Capitol Hill Madison Park

$1,361,000

Magnolia

$946,000

NE Seattle

$795,000

Seattle Central

$756,000

So. Lake Union | Queen Anne

$1,171,000

Michelle Van Tassell, Principal Managing Broker of CB Bain’s Madison Park Luxury Office

$756,000

West Seattle Area Condos

$411,000 $2,019,000

Waterfront (SF Only)

$3,111,000

Luxury ($2+M | SF + Condo)

$0K

$500K

600

$1000K

$1500K

$2000K

$2500K

Number of Sales Closed

Total Seattle Sales Closed

369

200 100

20

1487

462

300

0

$3500K

573

500 400

$3000K

35

239

88

98 104

92

31

43

Ballard | Green Lake

Capitol Hill

Madison Park

Magnolia

NE Seattle

Seattle Central

S. Lake Union | Queen Anne

West Seattle

Area Condos Only

Area Waterfront (SF Only)

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

14

50

24

20

18

25

28

20

18

74

74

Average Days on Market Current Inventory in Units

Total Seattle Area

416

104

25

15.6%

25.5%

16.7%

40

37

128

95

53

59

176

29

70

11.1%

0.0%

41.2%

51.5%

9.5%

110.8%

22.6%

-3.7% 5.8%

Change over third quarter 2015

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2016


SOUTH SOUND AREA Gig Harbor | Key Peninsula North Tacoma | Lakewood | University Place Puyallup | Graham SE King County SW King County

3rd Quarter 2016 Single Family & Condo Average Sold Price South Sound Area

$458,000

North Tacoma University Place | Lakewood

$320,000 $308,000

Puyallup | Graham

Continued interest in the construction around Commencement Bay and further development of commercial corridors between Tacoma and University Place, coupled with the explosion of growth around the new Fred Meyer complex in Gig Harbor and the strength of the Puyallup and Bonney Lake markets, have kept inventory below last year’s levels in all market quarters, with few exceptions.”

$410,000

SE King County

$376,000

SW King County So. King & Pierce County Condos

“Market demand for homes is stronger than last year. With new construction unit volume the same as last year, the pressure fell to resale homes. Median prices have risen at nearly 10% in urban areas. These figures seem to have risen for at least two reasons. The high demand for sub-median priced homes, and the near disappearance of uncared-for homes, has lifted the floor of market pricing and the median. At the other end of the scale, new construction is especially important in the supply of inventory, yet rising costs for land and materials affect finished prices.

$373,000

Gig Harbor | Key Peninsula

$212,000

So. King & Pierce County Waterfront (SF Only)

(Nearest $000)

Mike Flynn, Broker - Tacoma

$599,000

So. King & Pierce County Luxury ($1+M | SF+Condo)

$1,240,000

$0K

$300K

$600K

$1500K

5111

1500

1764

1000 873

500

29

$1200K

Number of Sales Closed

2000

0

$900K

Total South Sound Sales Closed

1108

926

775

440

203

52

Gig Harbor | Key Peninsula

North Tacoma | University Place | Lakewood

Puyallup | Graham

SE King County

SW King County

So. King & Pierce Co. Condos

So. King & Pierce Co. Waterfront (SF Only)

So. King & Pierce Co. Luxury ($1+M | SF+C)

55

28

28

26

24

30

74

112

383

293

213

-8.8%

-7.8%

Average Days on Market Current Inventory in Units

Total South Sound Area

3124

472

503

572

-3.8%

-12.0%

-17.4%

-3.3%

993

619

6.5%

1.0%

13.8%

Change over third quarter 2015

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2016


NORTH SOUND AREA

(Snohomish, Skagit, Whatcom) Bellingham Edmonds Everett Lynnwood

3rd Quarter 2016 Single Family & Condo Average Sold Price $424,000

North Sound Area

$405,000

Bellingham Edmonds

“Inventory in Whatcom County continues to be a challenge for buyers. With prices already on the rise, the pressures of multiple offers and cash investors have pushed a lot of people out of the market either looking farther south into Skagit County, or bowing out of home purchases altogether for the time being. With a number of buyers taking a step back, those who are patient are finding success in the marketplace.”

$569,000 $364,000

Everett

$445,000

Lynnwood 3-County Area Condos

(Nearest $000)

Sunny Lake, Principal Managing Broker of CB Bain’s Bellingham office

$272,000

3-County Area Waterfront (SF Only)

$560,000 $1,324,000

3-County Area Luxury ($1+M | SF+C)

$0K

$300K

$900K

$1200K

$1500K

Number of Sales Closed

600

1547

500 400

$600K

527

525

478

Total North Sound Sales Closed

300 306

200

238

100 0

27

46

29

Bellingham

Edmonds

Everett

Lynnwood

3-County Area Condos

3-County Area Waterfront (SF Only)

3-County Area Luxury ($1+M | SF+C)

42

22

20

20

22

89

63

55

61

-17.9%

-15.2%

Average Days on Market Current Inventory in Units

Total North Sound Area

762

287

116

257

102

-30.5%

-32.7%

-15.2%

-31.9%

-34.6%

223 0.3%

Change over third quarter 2015

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2016


PUGET SOUND AREA COUNTIES Island King Kitsap Pierce Skagit Snohomish Whatcom

3rd Quarter 2016 Single Family & Condo Average Sold Price Island

(Nearest $000)

$377,000

King

$660,000

Kitsap

$362,000 $314,000

Pierce Skagit

$330,000

Snohomish

$431,000

Whatcom

$354,000

$0K

$100K

$200K

$300K

$400K

$500K

$600K

$700K

$800K

Number of Sales Closed

10000 8000 8128

6000 4000 2000 0

1289

548

4254 676

3561

969

Island

King

Kitsap

Pierce

Skagit

Snohomish

Whatcom

51

23

39

32

50

26

53

Average Days on Market Current Inventory in Units 509

3743

923

2769

540

1850

796

-10.4%

0.9%

-7.7%

-10.9%

-14.4%

-18.0%

-22.9%

Change over third quarter 2015

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2016


SOUTHWEST WASHINGTON East Clark County North Clark County West Clark County

3rd Quarter 2016 Single Family & Condo Average Sold Price East Clark County

$357,000

North Clark County

$363,000

(Nearest $000)

$334,000

West Clark County

$202,000

Area Condos

$1,465,000

Area Luxury ($1+M | SF+C)

$0K

800

$600K

$900K

$1200K

$1500K

Number of Sales Closed

1200 1000

$300K

1110

600 400

604 415

200 0

115

10

East Clark County

North Clark County

West Clark County

Area Condos

Area Luxury ($1+M | SF+C)

30

37

29

25

111

Average Days on Market Current Inventory in Units 814

272

361

53

67

-12.0%

-20.3%

-10.9%

-20.4%

-8.8%

Change over third quarter 2015

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2016


SOUTHWEST WASHINGTON COUNTIES Clark County Cowlitz County

3rd Quarter 2016 Single Family & Condo Average Sold Price

(Nearest $000)

Clark County

$351,000

Cowlitz County

$215,000

$0K

$50K

$100K

$150K

$200K

$250K

$300K

$350K

$400K

Number of Sales Closed

2500 2000 1500 1000

2081 355

500 0

Clark County

Cowlitz County

31

44

Average Days on Market Current Inventory in Units 1468

297

-12.9% 27.2% Change over third quarter 2015

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2016


PORTLAND OREGON REGION

Portland, Oregon (Oct. 14, 2016) Coldwell Banker Seal, a leading Northwest real estate market brokerage, releases its third quarter market report providing a variety of statistics for the sale of homes in neighborhoods and counties in SW Washington and Oregon, as well as for segments including luxury and condos. This third quarter report reflects activity between July 1, 2016 and September 30, 2016.

“In Clark County, the year to date numbers for pending and closed sales are ahead compared to the same period in 2015. Closed sales are up 5.2% and pending sales are up 4.2%. However, new inventory remains very low. New listings that come on the market under $300,000 that are clean and priced correctly are selling quickly. The economic forecast for Clark County is strong. Employment grew by 4% in 2015 and numbers for 2016 are exceeding that. Numerous companies have moved to Clark

County including Fisher Investments, Integra Communications and Banfield Pet Hospitals to name a few. Developers broke ground on an extensive planned redevelopment of the waterfront along the Columbia River west of Interstate 5. Apartments, condos, hotels, restaurants and retail are all part of the plan, and with more possibilities under way on adjacent land owned by the Port of Vancouver, 2017 looks to be a similar year to 2016 according to local economists.” David Knode, Principal Managing Broker for Coldwell Banker Seal, Vancouver

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2016


PORTLAND OREGON REGION Beaverton | Aloha Lake Oswego | West Linn Milwaukie | Happy Valley North Portland Northeast Portland Southeast Portland West Portland | Raleigh Hills

3rd Quarter 2016 Single Family & Condo Average Sold Price Beaverton | Aloha

(Nearest $000)

$386,000

Lake Oswego | West Linn

“We’re seeing seasonal cooling in new listings and pending sales. The average sales price is steadily increasing while days on market continue to decrease. We continue to experience long turn-around times for appraisals - it can currently take 50 to 60 days to get an official report from an appraiser.”

$716,000

Milwaukie | Happy Valley

$399,000

North Portland

$403,000 $447,000

Northeast Portland Southeast Portland

Brian Houston, Principal Managing Broker of CB Seal’s Portland West office

$387,000

West Portland | Raleigh Hills

$643,000

Portland Metro (Tri-County) Area Condos

$418,000

Portland Metro Area Luxury ($1+M | SF+C)

$1,416,000

$0K

$300K

$600K

800

$1500K

895

901

600

655

642

599

514 348

200 0

$1200K

Number of Sales Closed

1000

400

$900K

282 157

Beaverton | Aloha

Lake Oswego | West Linn

Milwaukie | Happy Valley

North Portland

Northeast Portland

Southeast Portland

West Portland || Raleigh Hills

Portland Metro (Tri-County) Area Condos

Portland Metro Area Luxury ($1+M | SF+C)

20

34

31

18

20

20

31

21

49

458

443

Average Days on Market Current Inventory in Units 274

346

426

-10.9%

-3.0%

-9.4%

125

337

414

410

20.4%

19%

13.7%

12.5%

-2.5% 6.8%

Change over third quarter 2015

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2016


OREGON REGION COUNTIES Clackamas Multnomah Yamhill Washington

3rd Quarter 2016 Single Family & Condo Average Sold Price

(Nearest $000)

$457,000

Clackamas County

$438,000

Multnomah County

$427,000

Washington County

$316,000

Yamhill County

$0K

$100K

$200K

$300K

$400K

$500K

Number of Sales Closed

3000 2500

2644

2000 1500 1000

2082 1694 388

500 0

Clackamas County

Multnomah County

Washington County

Yamhill County

31

23

25

40

Average Days on Market Current Inventory in Units 1340

1612

1158

7.5%

1.3%

-10.1%

424 -16.6%

Change over third quarter 2015

PACIFIC NORTHWEST THIRD QUARTER MARKET REPORT - 2016


THIRD QUARTER MARKET REPORT - 2016 *Information and statistics derived by CB Bain from the Northwest Multiple Listing Service (NWMLS) each quarter. Statistics not compiled or published by the NWMLS.


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