2016 Year End Eastside Market Review

EASTSIDE MARKET

2016 RECAP

EASTSIDE MARKET REVIEW

EAS TSIDE MARKET REVIEW

A VIEW FROM THE EASTSIDE 2016 Real Estate Market Recap

After impressive results in 2016, the residential real estate market on the Eastside begins the new year with great fanfare. Last year’s numbers reflected a single trend: growth. From Bellevue to Woodinville, home prices rose beyond most experts’ predictions.

The main motivators for the Eastside’s double-digit price appreciation were heavy buyer demand and low housing supply. The former reflected the many appeals of Eastside living while the latter resulted from a bottleneck in the market, as prospective sellers were constrained by the dilemma of where to move given the lack of homes to buy. This imbalance led to higher prices for single family homes (up 12%), shorter market times (down 24%), and Sold prices that routinely exceeded List prices.

Market activity in 2016 followed a serpentine path. The first two quarters bustled with packed open houses and bidding wars, while the third quarter slowed due to pre-election jitters. The fourth quarter kicked back into high gear; buyers hoping for less competition were out in force, but they found the lowest supply of the year. Bidding wars during the holidays brought a fitting end to a busy 2016.

The year ahead: Sustained success for Eastside real estate Our projections show Eastside home price appreciation approaching double digits again in 2017. Last year’s squeeze on housing inventory will continue this year for two main reasons: more people moving to our region and less home building than the market demands. Even if rising mortgage rates sideline some buyers, market activity will remain strong. Home shoppers from around our region and the world will once again be drawn to the Eastside’s awardwinning schools, top-tier amenities and ever-expanding employment opportunities.

The core cities of Bellevue, Kirkland, Mercer Island and Redmond will continue to be hubs of work, shopping and transit. As we begin the new year, light rail has broken ground, cranes punctuate growing skylines, and tech companies offer new work spaces and employee shuttle services throughout the Eastside. Cities just outside the core – like Bothell, Duvall, Issaquah and Renton – will maintain their impressive growth.

With interest rates rising and the Eastside’s economy thriving, 2017 will be a great time to stake a claim in the Northwest’s most prized real estate market.

EAS TSIDE MARKET REVIEW

$668,300

$742,600

$967,300

$1,083,600

$361,900

$405,600

$787,200

$882,600

A V E RA G E E A S T S I DE HO M E PR ICE | 2016 VS. 2 0 1 5

SINGLE FAMILY HOMES

CONDOMINIUMS

NEW CONSTRUCTION HOMES

ALL PROPERTY TYPES

12%

12%

12%

11%

Last year the total volume of Eastside residential real estate sales rose by 13.6% over the previous year.

Single family home sales exceeded $7.7 billion, up 13.3%, while the average Sold Home Price increased by 12.1% to $882,600. Due to limited inventory, unit sales of single family homes were relatively flat compared to the previous year, but condo sales rose by 3.4%. New construction homes were in demand in 2016, with 5.3% more units sold, a 12% higher Average Sold Price and market times that were 18.3% shorter.

12172

12446

1331

1401

2908

3006

8747

8837

T O T A L E A S T SIDE SA L E S | 2016 VS. 2 0 1 5

SINGLE FAMILY HOMES

CONDOMINIUMS

NEW CONSTRUCTION HOMES

ALL PROPERTY TYPES

1%

3%

5%

2%

VDB ESTATES | COLDWELL BANKER BAIN

$8.13B

$9.24B

$1.29B

$1.52B

$1.05B

$1.22B

$6.89B

$7.8B

T O T AL E A S T S I D E SA L E S VO L U ME | 2016 VS. 2 0 1 5

SINGLE FAMILY HOMES

CONDOMINIUMS

NEW CONSTRUCTION HOMES

ALL PROPERTY TYPES

13%

16%

18%

14%

In 2016, 12 of the 16 communities in this report saw single family home price increases of at least 10%.

Newcastle led the way with a 19.2% increase over the previous year. Two other indicators of the hot Eastside real estate market: strong price ratios (the Average Sold Price exceeded the Average List Price in 12 cities) and declining Days-on-Market figures (13 Eastside cities saw homes sell at least 20% faster than in 2015). Condominiums sold the fastest of any property type, with an average market time of 23 days.

41 Days

32 Days

71 Days

58 Days

35 Days

23 Days

38 Days

29 Days

AV G . D A Y S ON M A R KE T | 2 0 1 6 VS. 2015

SINGLE FAMILY HOMES

CONDOMINIUMS

NEW CONSTRUCTION HOMES

ALL PROPERTY TYPES

-24%

-34%

-18%

-22%

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

VDB ESTATES | COLDWELL BANKER BAIN

LUXURY WATERFRONT ($2M+) 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $388.4M | $355.2M | 9.3% TOTAL HOMES SOLD 104 | 95 | 9.5% AVG. SALES PRICE $3,734,600 | $3,739,400 | -0.1% AVG. DAYS ON MARKET 64 | 80 | -20.0% SOLD/LIST PRICE % 96.1% | 94.6% | 1.6%

LU XU RY ($2M+ ) 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $1.179B | $923.6M | 27.7% TOTAL HOMES SOLD 400 | 299 | 33.8% AVG. SALES PRICE $2,948,100 | $3,089,000 | -4.6% AVG. DAYS ON MARKET 50 | 60 | -16.7% SOLD/LIST PRICE % 97.1% | 96.3% | 0.8%

Data compiled by Coldwell Banker Bain; Northwest Multiple Listing Service does not guarantee its accuracy.

EAS TSIDE MARKET REVIEW

BEL L EVU E 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $1.647B | $1.444B | 14.0% TOTAL HOMES SOLD 1,501 | 1,456 | 3.1% AVG. SALES PRICE $1,097,100 | $991,700 | 10.6% AVG. DAYS ON MARKET 21 | 26 | -19.2% SOLD/LIST PRICE % 101.7% | 100.1% | 1.6%

B OT H E LL 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $1.023B | $845.8M | 20.9% TOTAL HOMES SOLD 1,870 | 1,736 | 7.7% AVG. SALES PRICE $547,000 | $487,200 | 12.3% AVG. DAYS ON MARKET 23 | 45 | -48.9% SOLD/LIST PRICE % 101.6% | 100.3% | 1.3%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/16 and 12/31/16.

VDB ESTATES | COLDWELL BANKER BAIN

C A R N AT I O N 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $93.5M | $62.9M | 48.7% TOTAL HOMES SOLD 164 | 121 | 35.5% AVG. SALES PRICE $569,900 | $519,600 | 9.7% AVG. DAYS ON MARKET 43 | 66 | -34.8% SOLD/LIST PRICE % 99.7% | 98.1% | 1.6%

C LYD E H I L L 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $180.7M | $151.6M | 19.2% TOTAL HOMES SOLD 81 | 63 | 28.6% AVG. SALES PRICE $2,230,800 | $2,406,900 | -7.3% AVG. DAYS ON MARKET 40 | 52 | -23.1% SOLD/LIST PRICE % 97.8% | 97.9% | -0.1%

Data compiled by Coldwell Banker Bain; Northwest Multiple Listing Service does not guarantee its accuracy.

EAS TSIDE MARKET REVIEW

D U VAL L 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $119.8M | $111.4M | 7.5% TOTAL HOMES SOLD 235 | 238 | -1.3% AVG. SALES PRICE $509,700 | $468,300 | 8.8% AVG. DAYS ON MARKET 27 | 37 | -27.0% SOLD/LIST PRICE % 100.6% | 99.5% | 1.1%

I SS AQ UA H 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $594.6M | $523.2M | 13.7% TOTAL HOMES SOLD 775 | 773 | 0.3% AVG. SALES PRICE $767,300 | $676,800 | 13.4% AVG. DAYS ON MARKET 23 | 31 | -25.8% SOLD/LIST PRICE % 101.7% | 100.3% | 1.4%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/16 and 12/31/16.

VDB ESTATES | COLDWELL BANKER BAIN

K I R K LA N D 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $1.122B | $888.2M | 26.3% TOTAL HOMES SOLD 1,296 | 1,176 | 10.2% AVG. SALES PRICE $865,700 | $755,300 | 14.6% AVG. DAYS ON MARKET 25 | 30 | -16.7% SOLD/LIST PRICE % 101.4% | 99.9% | 1.5%

MED I NA 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $152.3M | $150.7M | 1.1% TOTAL HOMES SOLD 55 | 63 | -12.7% AVG. SALES PRICE $2,769,800 | $2,392,700 | 15.8% AVG. DAYS ON MARKET 27 | 47 | -42.6% SOLD/LIST PRICE % 99.1% | 97.7% | 1.4%

Data compiled by Coldwell Banker Bain; Northwest Multiple Listing Service does not guarantee its accuracy.

EAS TSIDE MARKET REVIEW

MERC ER I S L AND 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $497.6M | $501.0M | -0.7% TOTAL HOMES SOLD 303 | 330 | -8.2% AVG. SALES PRICE $1,642,100 | $1,518,000 | 8.2% AVG. DAYS ON MARKET 29 | 41 | -29.3% SOLD/LIST PRICE % 98.8% | 98.0% | 0.8%

N E W C A S T LE 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $172.4M | $152.0M | 13.4% TOTAL HOMES SOLD 197 | 207 | -4.8% AVG. SALES PRICE $874,900 | $734,200 |19.2% AVG. DAYS ON MARKET 35 | 37 | -5.4% SOLD/LIST PRICE % 100.2% | 99.7% | 0.5%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/16 and 12/31/16.

VDB ESTATES | COLDWELL BANKER BAIN

N O RT H B E N D 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $162.3M | $141.9M | 14.3% TOTAL HOMES SOLD 303 | 292 | 3.8% AVG. SALES PRICE $535,600 | $486,100 | 10.2% AVG. DAYS ON MARKET 31 | 50 | -38.0% SOLD/LIST PRICE % 100.1% | 99.5% | 0.6%

RED MOND 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $900.8M | $833.9M | 8.0% TOTAL HOMES SOLD 1,108 | 1,183 | -6.3% AVG. SALES PRICE $813,000 | $704,900 | 15.3% AVG. DAYS ON MARKET 22 | 33 | -33.3% SOLD/LIST PRICE % 101.8% | 100.5% | 1.3%

Data compiled by Coldwell Banker Bain; Northwest Multiple Listing Service does not guarantee its accuracy.

EAS TSIDE MARKET REVIEW

RENTON 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $892.7M | $787.8M | 13.3% TOTAL HOMES SOLD 1,889 | 1,907 | -0.9% AVG. SALES PRICE $472,600 | $413,100 | 14.4% AVG. DAYS ON MARKET 30 | 40 | -25.0% SOLD/LIST PRICE % 100.9% | 99.9% | 1.0%

S A M MA M I SH 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $968.6M | $823.7M | 17.6% TOTAL HOMES SOLD 1,035 | 1,018 | 1.7% AVG. SALES PRICE $935,900 | $809,100 | 15.7% AVG. DAYS ON MARKET 25 | 33 | -24.2% SOLD/LIST PRICE % 101.0% | 99.9% | 1.1%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/16 and 12/31/16.

VDB ESTATES | COLDWELL BANKER BAIN

S N O Q UA LMI E 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $206.5M | $237.1M | -12.9% TOTAL HOMES SOLD 333 | 432 | -22.9% AVG. SALES PRICE $620,100 | $548,700 | 13.0% AVG. DAYS ON MARKET 15 | 36 | -58.3% SOLD/LIST PRICE % 100.8% | 100.4% | 0.4%

WOOD I NVI L L E 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $445.4M | $384.1M | 15.9% TOTAL HOMES SOLD 585 | 582 | 0.5% AVG. SALES PRICE $761,300 | $660,000 | 15.3% AVG. DAYS ON MARKET 28 | 39 | -28.2% SOLD/LIST PRICE % 100.2% | 99.5% | 0.7%

Data compiled by Coldwell Banker Bain; Northwest Multiple Listing Service does not guarantee its accuracy.

EASTSIDE MARKET - 2016 REVIEW *Information and statistics derived by CB Bain from the Northwest Multiple Listing Service (NWMLS). Statistics not compiled or published by the NWMLS.