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
02
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
03
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.
04
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
05
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.”
06
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
07
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
08
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
09
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
10
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.”
11
“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
12
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
14
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
17
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
18
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
19
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.