Pacific Northwest Market Review - First Quarter 2018

Q1 2018

PACIFIC NORTHWEST MARKET REPORT PUGET SOUND | SOUTHWEST WASHINGTON | OREGON

Q1

ABOUT COLDWELL BANKER BAIN

2018

Coldwell Banker Bain is the #1 Coldwell Banker affiliate in the world with over $6 billion in volume in 2017, and has been helping people buy and sell homes in the Pacific Northwest since 1972.

With 1,100+ brokers in 32 offices throughout Washington and Oregon, the company provides the full spectrum of services to buyers and sellers, with special expertise in the luxury realm. Additionally, the company has once again earned the national Coldwell Banker Chairman’s Circle designation for outstanding

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performance in volume for 2017, ranking as a No. 1 network affiliate out of 3,000 offices in 48 countries. The company also provides services in property management, commercial real estate and real estate investment, and relocation management. Coldwell Banker Bain consistently ranks among the Top 20 Real Estate Companies in the nation as cited by Real Trends and RISMedia’s Real Estate. For more information, visit coldwellbankerbain.com.

FIRST QUARTER NUMBERS

BELLEVUE, Wash. (April 17, 2018) – Coldwell Banker Bain, a leading provider of real estate brokerage services throughout Washington and Oregon, and a market leader in home sales in 2017,* releases its first-quarter market report providing a variety of statistics for the sale of homes in neighborhoods and counties throughout the Puget Sound region, as well as for segments including luxury and condos. The first-quarter report reflects activity between Jan. 1, 2018 and March 31, 2018.* Reflecting on the first quarter numbers and feedback from brokers, Mike Grady, CB

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Bain president and COO, said he expects another ”spring frenzy.” “We simply continue on a breakneck pace with demand exceeding supply, and prices continuing to climb,” he said.

“Although in King County there is a bit more inventory than at this same time last year, steep price appreciation continues to push home buyers outside of the county and inventories in Snohomish, Pierce and other counties continue to be in the red as people search for affordable options. Given that the region’s job market doesn’t appear to be slowing anytime soon, we expect another hectic spring.”

PACIFIC NORTHWEST MARKET REPORT

Q1

EASTSIDE AREA

2018

“Eastsiders saw a spike in new listings but brisk sales have triggered predictions of the market intensifying for a real spring frenzy,” said Thadine Bak, Principal Managing Broker of the CB Bain of Bellevue office. “The average single-family home price – across all Eastside communities – surpassed $1 million for the first quarter $1,045,136. This represented a 16.5% increase over Q1 2017.

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Because supply never matched buyer demand, Eastside unit sales were down 9.4% for Q1 2018 (1,570 homes sold vs. 1,732 in 2017).

Homes sold 18% faster in 2018. The average Eastside condominium price shot up 25.4% to $562,038. Eastside job growth and an uptick in mortgage interest rates have continued to fuel the frenzy.”

EASTSIDE AREA Bellevue | Bothell | Duvall - Carnation | Kirkland | Issaquah - Sammamish | Mercer Island Redmond | Woodinville SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY

AVERAGE DOM

AVERAGE SOLD PRICE (Nearest $000) Eastside Area

$1,045,000

28

Bellevue

$1,414,000

24

Bothell

$699,000

21

Duvall - Carnation

$712,000

33

Kirkland

$1,216,000

Issaquah - Sammamish

$1,043,000

29 34

Mercer Island

$1,927,000

41

Redmond

$1,012,000

Woodinville

$941,000

28 34

Area Condos

$604,000

15

Area Waterfront (SF Only)

$2,124,000

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

$3,095,000

38 68

$0K

$500K

$1000K

$1500K

$2000K

$2500K

$3000K

NUMBER OF SALES CLOSED 600

600

500

1404 Total Seattle Sales Closed

400 300 200 100 0

341

290

216 90 Bellevue

Bothell

63

171

Duvall Carnation

Kirkland

132

42

101

87

Issaquah Sammamish

Mercer Island

Redmond

Woodinville

Area Condos

Area Waterfront (SF Only)

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

INVENTORY IN UNITS - 3/31/2018 Total Eastside Inventory

607

+13.9%

115

97

24

90

133

51

43

54

135

51

149

+17.7%

+59.0%

-7.7%

+1.1%

+18.8%

-16.4%

+2.4%

+26.6%

-17.2%

+2.0%

+14.6%

% of change from 2017

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PACIFIC NORTHWEST MARKET REPORT

Q1 2018

John Deely, Principal Managing Broker for CB Bain’s Lake Union office, stressed how important pricing is, saying that buyers are becoming more savvy and annoyed by overpricing. “Despite the low inventory and sellers’ market, proper pricing is still important. In the first quarter we had more listings where sellers pushed the price envelope causing the property to go past their offer review date with no offers in hand. It is not uncommon for buyers to consider a property on the market over 10 days as being overpriced. With average prices near $1 million, buyers are leery of aging listings.”

“We are seeing many buyers that lost out on several attempts in a multiple offer competition from last year who are returning from taking a break during the winter. As seasoned veterans of the multiple offer bidding wars, they are throwing caution to the wind, and pulling out all the stops (contingencies) to win.”

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SEATTLE AREA

SEATTLE AREA Ballard - Green Lake | Capitol Hill | Madison Park | Magnolia | NE Seattle | Seattle Central South Lake Union - Queen Anne | West Seattle SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY

AVERAGE DOM

AVERAGE SOLD PRICE (Nearest $000) Seattle Area

$991,000

20

Ballard - Green Lake

$870,000

11

Capitol Hill

$1,180,000

26

Madison Park

$1,346,000

21

Magnolia

$1,233,000

NE Seattle

$972,000

35 15

Seattle Central

$876,000

21

$1,314,000

South Lake Union Queen Anne West Seattle

$944,000

39 39

Area Condos

$542,000

15

Area Waterfront (SF Only)

$967,000

50 103

$2,588,000

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

$0K

$500K

$1000K

$1500K

$2000K

$2500K

$3000K

NUMBER OF SALES CLOSED 350 300 250 200

255

Total Seattle Sales Closed

212

150

150

100

32

50 0

870

313

BallardGreen Lake

Capitol Hill

54

61

Madison Park

Magnolia

47

59

6

35

NE Seattle

Seattle Central

S. Lake Union Queen Anne

Silverdale

Area Condos

Area Waterfront (SF Only)

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

INVENTORY IN UNITS - 3/31/2018 Total Seattle Inventory

285

+12.6%

54

20

32

29

56

43

31

20

88

26

74

+50.0%

+150.0%

+39.1%

+3.6%

+5.7%

-23.2%

+10.7%

-4.8%

0.0%

+36.8%

+37.0%

% of change from 2017

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PACIFIC NORTHWEST MARKET REPORT

Q1

SOUTH SOUND AREA

2018

Cristian Koch, the newly appointed Principal Managing Broker of CB Bain’s Bainbridge Island office, said, “We are entering the spring market with the full effect of the laws of supply and demand. Our inventory is down by 50% from this time last year yet the demand is soaring.

We are seeing buyers from Seattle more than willing to experience the pleasant 30-minute

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ferry commute versus the sometimes agonizing highway commutes to the Seattle suburbs.

Bainbridge Island and points north like Silverdale and Kingston have also seen a significant rise in both values and demand along with decreasing inventories as we continue to experience an amazing 2018.”

SOUTH SOUND AREA Gig Harbor - Key Peninsula | North Tacoma - Lakewood - University Place | Puyallup - Graham SE King County | SW King County | Bainbridge Island | Silverdale SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY

AVERAGE SOLD PRICE (Nearest $000)

AVERAGE DOM

South Sound Area

$400,000

42

Gig Harbor - Key Peninsula

$519,000

71

North Tacoma - Lakewood University Place

$390,000

45

Puyallup - Graham

$349,000

38

SE King County

$477,000

36

SW King County

$458,000

36

Bainbridge Island

$1,057,000

63

Silverdale

$371,000

37

Area Condos

$259,000

29

$756,000

90

$1,354,000

80

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

$0K

$300K

$600K

$900K

$1200K

$1500K

NUMBER OF SALES CLOSED 1200 1000 800

618

556

400

0

Total South Sound Sales Closed

783

722

600

200

6027

1042

312 Gig Harbor Key Peninsula

N. Tacoma University Pl. - Lakewood

Puyallup - Graham

73

62

156

94

SE King County

SW King County

Bainbridge Island

Silverdale

Area Condos

Area Waterfront (SF Only)

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

INVENTORY IN UNITS - 3/31/2018 Total South Sound Inventory

2277

-10.3%

243

191

322

380

257

38

22

164

227

200

-10.7%

-16.2%

+15.8%

-3.1%

+4.5%

-50.6%

-24.1%

-24.1%

-16.5%

+3.6%

% of change from 2017

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PACIFIC NORTHWEST MARKET REPORT

Q1

NORTH SOUND AREA (Snohomish, Skagit, Whatcom)

2018

Michelle Van Tassell, Principal Managing Broker for CB Bain’s Edmonds and Lynnwood offices, notes that Snohomish County has quickly become a targeted area for buyers planning ahead for transit solutions, as well as more affordable options to King County. “We’re advising that sellers keep in mind that it is in their interest to close their property with a clean and clear break from the transaction, and therefore encourages sellers to embrace buyers’ due diligence efforts. Buyers should continue to keep

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in mind their own appetite for risk, and work with a broker who has a deep understanding of how to structure a competitive offer while protecting their client’s interests.”

“Regarding low appraisals, savvy buyers make offers well within their affordability range, and may include proof of funds for the increased down payment and maintain reserves for the inevitable maintenance costs associated with home ownership.”

NORTH SOUND AREA (Snohomish, Skagit, Whatcom) Bellingham | Edmonds | Everett | Lynnwood SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY

AVERAGE SOLD PRICE (Nearest $000)

AVERAGE DOM

North Sound Area

$477,000

35

Anacortes

$551,000

55

Bellingham

$459,000

56

Edmonds

$670,000

22

Everett

$439,000

29

Lynnwood

$525,000

17

Marysville

$383,000

33

3-County Area Condos

$348,000

28

3-County Area Waterfront (SF Only)

$616,000

94

$1,367,000

58

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

$0K

$300K

$600K

$900K

$1200K

$1500K

NUMBER OF SALES CLOSED 500

500

400 300

Total North Sound Sales Closed

282

200 100 0

527

385

478

1287

131

91 Anacortes

177

Bellingham

Edmonds

Everett

Lynnwood

221

Marysville

3-County Area Condos

37

30

3-County Area Waterfront (SF Only)

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

INVENTORY IN UNITS - 3/31/2018 Total North Sound Inventory

442

-7.5%

89

148

44

58

50

53

120

46

80

+6.0%

+3.5%

+12.8%

-37.6%

-2.0%

-22.1%

+38.0%

-2.1%

+42.9%

% of change from 2017

John Speer, Principal Managing Broker at the CB Bain of Everett office, adds that a low inventory seller’s market now persists. “Buyers are becoming much more geographically flexible, hoping to find available and affordable homes to purchase. The best approach for buyers to succeed in a multiple-offer scenario is to work with their real estate broker to prepare and present a well-prepared and complete offer that depicts their wherewithal to finance their home purchase.”

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“Buyers should collaborate with their real estate professionals to assess the risk of low appraisals when the sales price exceeds market value. While financed buyers may be willing to pay more than market value, they should note that contracts now often include provisions where the buyer agrees to increase their down payment to make up the difference between the high selling price and the low appraised value.”

PACIFIC NORTHWEST MARKET REPORT

Q1

PUGET SOUND AREA COUNTIES

2018

Stephanie Callen, Broker in CB Bain’s Puyallup office, said, “The time change in March has prompted a spurt in new listings and Pierce County is still on the rise! The average sale in the county at the end of March was just shy of $350,000. Tacoma’s median single-family home price is $325,000, with just a little over a month in inventory. Gig Harbor remains the top dog for Pierce County in terms of price. The median price there is $465,000. This is 15% higher than last year. Buyers looking for a Pierce County bargain should check out South Tacoma. The median price there in February was $224,225, up $24,225 from last year. The biggest price increases were in Fife, Milton, Edgewood and

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Sumner where homes were up by over $100,000 to a median price of $438,000.”

“It is becoming more difficult everywhere for first-time home buyers to enter the market and Pierce County is no exception. Sellers are also more and more reluctant to accept FHA and VA loan products from buyers when they are getting cash and conventional offers. This is putting a strain on the military contingent in the area. It is also worth mentioning that RentCafe’s February report stated that ‘Downtown Tacoma is one of the fastest-gentrified ZIP codes nationwide since 2000, one of only two on the West Coast.’ “

PUGET SOUND AREA COUNTIES Island | King | Kitsap | Pierce | Skagit | Snohomish | Whatcom SINGLE FAMILY (SF), CONDO

AVERAGE SOLD PRICE (Nearest $000)

AVERAGE DOM

Island

$400,000

68

King

$791,000

29

Kitsap

$397,000

47

Pierce

$363,000

43

Skagit

$387,000

61

Snohomish

$507,000

32

Whatcom

$400,000

66

$0K

$100K

$200K

$300K

$400K

$500K

$600K

$700K

$800K

NUMBER OF SALES CLOSED 5000

4754

4000 3000

3259

2000 1000 0

2175 381

408

943

Island

King

263 -7.4%

Kitsap

Pierce

Skagit

Snohomish

Whatcom

1746

359

1281

290

662

435

+3.0%

-28.3%

-8.5%

-2.0%

-14.2%

-6.7%

INVENTORY IN UNITS - 3/31/2018

% of change from 2017

13

600

PACIFIC NORTHWEST MARKET REPORT

Q1 2018

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SOUTHWEST WASHINGTON

SOUTHWEST WASHINGTON East Clark County | North Clark County | West Clark County SINGLE FAMILY (SF), CONDO & LUXURY

AVERAGE SOLD PRICE (Nearest $000)

AVERAGE DOM

East Clark County

$410,000

42

North Clark County

$397,000

53

West Clark County

$383,000

43

Clark County Condos

$251,000

43

Clark County Luxury ($1+M | SF + Condo)

$1,749,000

183

$0K

$500K

$1000K

$1500K

$2000K

NUMBER OF SALES CLOSED 800 700 600

761

500 400

471

300 200 0

114

226

100 East Clark County

North Clark County

11 West Clark County

Clark County Condos

Clark County Luxury ($1+M | SF + Condo)

INVENTORY IN UNITS - 3/31/2018

449

238

246

60

64

-2.2%

+41.7%

+0.8%

+53.8%

+30.6%

% of change from 2017

15

PACIFIC NORTHWEST MARKET REPORT

Q1

SOUTHWEST WASHINGTON COUNTIES Clark County | Cowlitz County

2018

SINGLE FAMILY (SF), CONDO

AVERAGE SOLD PRICE (Nearest $000)

AVERAGE DOM

Clark County

$400,000

44

Cowlitz County

$253,000

63

$0K

$50K

$100K

$150K

$200K

$250K

$300K

$350K

NUMBER OF SALES CLOSED 1500 1200

1473

900

471

600

300

300 0

Clark County

Cowlitz County

INVENTORY IN UNITS - 3/31/2018

916

151

+8.7%

-9.0% % of change from 2017

16

$400K

PORTLAND OREGON REGION

PORTLAND, Oregon (April 17, 2018) – Coldwell Banker Bain, a leading provider of real estate brokerage services throughout Washington and Oregon, and a market leader in home sales in 2017,* releases its first-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 first-quarter report reflects activity between Jan. 1, 2018 and March 31, 2018.* Ward Spears, CB Bain’s Oregon Regional Manager, noted that the average prices in Portland continue to climb, saying, “The pace of

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sales is only slightly below the brisk pace we saw last year. In March of 2017 we saw our lowest rates of inventory for the year at only 1.3 months.

The level of inventory in March 2018 came in at a rate a touch higher at 1.6 months, which is still at a level that presents a challenge to home buyers looking to find a home. It is important to keep in mind there are many sub-markets within Portland that present much different dynamics to the attentive home buyer. Buyers who are careful to choose the right agent who will work diligently on their behalf will come out ahead in this market.”

PACIFIC NORTHWEST MARKET REPORT

Q1

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

2018

SINGLE FAMILY (SF), CONDO, & LUXURY

AVERAGE SOLD PRICE (Nearest $000)

AVERAGE DOM

Beaverton - Aloha

$425,000

40

Lake Oswego - West Linn

$748,000

63

Milwaukie - Gladstone Happy Valley

$435,000

47

North Portland

$440,000

36

Northeast Portland

$482,000

38

Southeast Portland

$417,000

39

West Portland - Raleigh Hills

$681,000

57

Portland Metro (Tri-County) Area Condos

$336,000

38

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

$1,597,000

85

$0K

$500K

$1000K

$1500K

$2000K

NUMBER OF SALES CLOSED 800 700 600 400 300

453

388

200

Beaverton - Aloha

Lake Oswego West Linn

435 326

239

100 0

701

643

500

207 Milwaukie - Gladstone - Happy Valley

North Portland

120 Northeast Portland

Southeast Portland

West Portland Raleigh Hills

Portland Metro (Tri-County) Area Condos

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

INVENTORY IN UNITS - 3/31/2018

123

254

292

93

250

317

342

580

417

-22.6%

+7.6%

+4.7%

+66.1%

+27.0%

+32.1%

+42.0%

+85.0%

+35.0%

% of change from 2017

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OREGON REGION COUNTIES Clackamass County | Multnomah County | Yamhill County | Washington County SINGLE FAMILY (SF), CONDO

AVERAGE DOM

AVERAGE SOLD PRICE (Nearest $000)

Clackamas County

$498,000

52

MultnomahCounty

$469,000

43

Yamhill County

$476,000

43

Washington County

$379,000

57

$0K

$100K

$200K

$300K

$400K

$500K

NUMBER OF SALES CLOSED 2000

1786

1500 1000

1389

1152

279

500 0

Clackamas County

Multnomah County

Yamhill County

Washington County

INVENTORY IN UNITS - 3/31/2018

890

1069

648

221

+8.4%

+31.5%

-9.9%

+4.2%

% of change from 2017

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PACIFIC NORTHWEST MARKET REPORT

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