Seattle Market Review - Third Quarter 2017

SEATTLE MARKET Q3 2017 RECAP

Seattle Market Review

www.vdbluxury.com

SEATTLE MARKET REVIEW

SEATTLE SNAPSHOT Real Estate Market Recap | Q1-Q3 2017 The third quarter of 2017 saw Seattle’s tight housing market get a little tighter. Declining inventories of homes and condos compelled existing buyers to remain aggressive and prevented some new buyers from jumping into the market. Sales statistics from the end of the third quarter reveal why Seattle’s real estate market continues to be considered the nation’s hottest.

Compared with the first three quarters of 2016, this year’s total dollar volume of single family home sales grew by 19%, while the average sold price increased by 12% to $788,500. And despite a citywide housing shortage, unit sales of single family homes grew by 6% through September. Demand for condos was strong in the first three quarters but there was nowhere near enough supply. As a result, condo sales declined in both units and dollar volume compared to the same period last year. Overall, competition for homes and condos remained fierce during Q1-Q3. As proof, the average Seattle home sold for 4.5% above its list price and the average condo sold for 4.4% above list. In the fourth quarter, smart buyers will take advantage of any breathing room the market might bring but will still need to assert themselves to succeed before year’s end.

V D B LU X U RY - C O L DW EL L BA N K ER BA I N - B E L L E V U E | MADISON PARK

Third quarter buyers still bullish; market maintains momentum despite low supply Facing a shortage of available listings during the third quarter, Seattle home buyers proved resilient and committed to their quest. Unit sales of single family homes were up 5% over Q3 2016, even though inventory was down 21% at quarter’s end. This buying spree resulted in faster market times: the average Seattle single family home sold in 14 days during Q3, versus 18 days in the first half of 2017. The rapid absorption of available homes during the third quarter lowered inventories further, limiting buyers’ choices in the fourth quarter and beyond.

And this undersupply of housing is sure to expand as Seattle’s population grows, largely because new construction seems unable to solve the problem. Despite voracious demand for newly-built homes and condos, year-to-date sales of new construction units are down 26% from 2016, due entirely to insufficient supply.

An ongoing inventory imbalance is certain to propel this year’s major trends into 2018: higher asking prices, faster market times, dramatic sold-to-list price ratios. As they witness this market, some Seattle homeowners are deciding that it’s the right time to list their properties. If that group includes you, let us help you prepare, price and position your home for maximum return.

EASTSIDE MARKET REVIEW

$658,500

$733,000

$768,600

$857,000

$505,600

$524,100

$706,700

$788,500

AV E RA G E H OM E PR ICE | YT D 2017 VS. 2 0 1 6

SINGLE FAMILY HOMES

CONDOMINIUMS

NEW CONSTRUCTION HOMES

ALL PROPERTY TYPES

12%

4%

12%

11%

The total volume of Seattle property sales approached $7 billion in the first three quarters of 2017, setting a new record. The average price of a single family home rose to $788,500, up 12% over the same period last year.

Lower supply of both condos and new construction homes led to reductions in the number of units sold and drove up competition among buyers. As a result, the condo market saw a list-to-sold price ratio of 104.4%. Unit sales of single family homes grew by 6% citywide and rose in ten of the sixteen communities charted in the following pages. The Queen Anne/Magnolia community’s unit sales increased by 23%, the highest rate of growth in the city.

9618

9329

1569

1160

2847

2160

6376

6779

T O T A L U N I T SA L E S | YT D 2017 VS. 2 0 1 6

SINGLE FAMILY HOMES

CONDOMINIUMS

NEW CONSTRUCTION HOMES

ALL PROPERTY TYPES

6%

-24%

-26%

-3%

V D B LU X U RY - C O L DW EL L BA N K ER BA I N - B E L L E V U E | MADISON PARK

$6.33B

$6.84B

$1.21B

$994M

$1.44B

$1.13B

$4.51B

$5.35B

T O T AL S A L E S VO L U M E | YT D 2017 VS. 2 0 1 6

SINGLE FAMILY HOMES

CONDOMINIUMS

NEW CONSTRUCTION HOMES

ALL PROPERTY TYPES

19%

-21%

-18%

8%

Of the sixteen areas analyzed in this report, fifteen experienced home price gains in Q1-Q3, and ten saw price growth of at least 10% over the first three quarters of 2016. Prices in the Fremont/Wallingford area experienced the highest growth, at 20%. Despite a sales slowdown attributable to a lack of new projects, the downtown condo market saw its average sold price surpass the average single family home price citywide ($792,880 vs. $788,500). Fifteen of sixteen areas had an average sold price that was greater than the average list price, further proof of the Seattle housing market’s health in the first three quarters of 2017.

20 Days

17 Days

42 Days

27 Days

24 Days

17 Days

18 Days

16 Days

AV G . D A Y S O N MA R KE T | YT D 2 0 1 7 VS. 2016

SINGLE FAMILY HOMES

CONDOMINIUMS

NEW CONSTRUCTION HOMES

ALL PROPERTY TYPES

-11%

-29%

-36%

-15%

VDB Luxury : 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.

Top 250 Teams Nationwide

Number One Real Estate Team

Top 2 Teams Northwest Region

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As the founder of VDB Luxury, 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 Luxury continues to be Coldwell Banker Bain’s #1 Team year after year.

Mark von der Burg | Luxury Division Director

V D B LU X U RY - C O L DW EL L BA N K ER BA I N - B E L L E V U E | MADISON PARK

LUXURY ($2M+) YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $315.6M | $283.4M | 11.3% TOTAL HOMES SOLD 116 | 101 | 14.9% AVG. SALES PRICE $2,720,369 | $2,806,125 | -3.1% AVG. DAYS ON MARKET 49 | 63 | -22.2% SOLD/LIST PRICE % 98.9% | 98.6% | 0.3%

LUXURY WATERFRONT ($2M+) YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $72.4M | $65.7 | 10.2% TOTAL HOMES SOLD 22 | 17 | 29.4% AVG. SALES PRICE $3,289,136 | $3,863,676 | -14.9% AVG. DAYS ON MARKET 64 | 139 | -54.0% SOLD/LIST PRICE % 96.4% | 96.9% | -0.5%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 9/30/17.

EASTSIDE MARKET REVIEW

CAPITOL HILL NORTH CAPITOL HILL YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $188.6M | $177.4M | 6.3% TOTAL HOMES SOLD 163 | 174 | -6.3% AVG. SALES PRICE $1,156,812 | $1,019,792 | 13.4% AVG. DAYS ON MARKET 25 | 26 | -3.8% SOLD/LIST PRICE % 103.3% | 102.4% | 0.9%

EASTLAKE | MONTLAKE PORTAGE BAY YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $87.2M | $78.0M | 11.8% TOTAL HOMES SOLD 81 | 74 | 9.5% AVG. SALES PRICE $1,076,437 | $1,054,159 | 2.1% AVG. DAYS ON MARKET 19 | 31 | -38.7% SOLD/LIST PRICE % 103.2% | 101.7% | 1.4%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 9/30/17.

V D B LU X U RY - C O L DW EL L BA N K ER BA I N - B E L L E V U E | MADISON PARK

MADISON PARK | BROADMOOR DENNY BLAINE | WASHINGTON PARK YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $126.7M | $151.5M | -16.4% TOTAL HOMES SOLD 65 | 79 | -17.7% AVG. SALES PRICE $1,949,359 | $1,918,295 | 1.6% AVG. DAYS ON MARKET 29 | 33 | -12.1% SOLD/LIST PRICE % 99.7% | 99.3% | 0.4%

CENTRAL AREA | LESCHI MADISON VALLEY | MADRONA YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $273.0M | $246.9M | 10.6% TOTAL HOMES SOLD 319 | 315 | 1.3% AVG. SALES PRICE $855,887 | $783,857 | 9.2% AVG. DAYS ON MARKET 19 | 25 | -24.0% SOLD/LIST PRICE % 105.2% | 102.8% | 2.3%

Some NWMLS data compiled by Trendgraphix. All property photos courtesy of Coldwell Banker Bain’s Bellevue and Madison Park brokers.

EASTSIDE MARKET REVIEW

BRYANT | HAWTHORNE HILLS SAND POINT | VIEW RIDGE YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $178.4M | $157.0M | 13.6% TOTAL HOMES SOLD 178 | 166 | 7.2% AVG. SALES PRICE $1,002,238 | $945,688 | 6.0% AVG. DAYS ON MARKET 16 | 15 | 6.7% SOLD/LIST PRICE % 106.6% | 104.1% | 2.4%

LAURELHURST | WINDERMERE YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $113.6M | $100.5M | 13.0% TOTAL HOMES SOLD 64 | 53 | 20.8% AVG. SALES PRICE $1,774,783 | $1,895,835 | -6.4% AVG. DAYS ON MARKET 26 | 50 | -48.0% SOLD/LIST PRICE % 100.8% | 100.8% | 0.0%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 9/30/17.

V D B LU X U RY - C O L DW EL L BA N K ER BA I N - B E L L E V U E | MADISON PARK

MAPLE LEAF | RAVENNA ROOSEVELT | WEDGWOOD YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $263.4M | $230.5M | 14.2% TOTAL HOMES SOLD 319 | 320 | -0.3% AVG. SALES PRICE $825,651 | $720,432 | 14.6% AVG. DAYS ON MARKET 11 | 13 | -15.4% SOLD/LIST PRICE % 108.4% | 106.5% | 1.8%

CEDAR PARK | INVERNESS LAKE CITY | MATTHEWS BEACH YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $100.5M | $83.9M | 19.9% TOTAL HOMES SOLD 125 | 121 | 3.3% AVG. SALES PRICE $804,343 | $693,308 | 16.0% AVG. DAYS ON MARKET 18 | 20 | -10.0% SOLD/LIST PRICE % 103.7% | 103.0% | 0.7%

Some NWMLS data compiled by Trendgraphix. All property photos courtesy of Coldwell Banker Bain’s Bellevue and Madison Park brokers.

EASTSIDE MARKET REVIEW

QUEEN ANNE | MAGNOLIA YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $654.9M | $513.3M | 27.6% TOTAL HOMES SOLD 605 | 493 | 22.7% AVG. SALES PRICE $1,082,531 | $1,041,094 | 4.0% AVG. DAYS ON MARKET 19 | 24 | -20.8% SOLD/LIST PRICE % 103.1% |101.7% | 1.4%

BALLARD | BLUE RIDGE CROWN HILL | NORTH BEACH YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $385.7M | $346.0M | 11.5% TOTAL HOMES SOLD 480 | 484 | -0.8% AVG. SALES PRICE $803,543 | $714,839 | 12.4% AVG. DAYS ON MARKET 13 | 15 | -13.3% SOLD/LIST PRICE % 105.2% | 104.1% | 1.0%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 9/30/17.

V D B LU X U RY - C O L DW EL L BA N K ER BA I N - B E L L E V U E | MADISON PARK

PHINNY RIDGE | GREENLAKE YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $272.5M | $251.9M | 8.1% TOTAL HOMES SOLD 307 |324 | -5.2% AVG. SALES PRICE $887,478 | $777,546 | 14.1% AVG. DAYS ON MARKET 11 | 13 | -15.4% SOLD/LIST PRICE % 108.2% | 106.9% | 1.2%

FREMONT | WALLINGFORD YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $193.3M | $148.0M | 30.6% TOTAL HOMES SOLD 214 | 196 | 9.2% AVG. SALES PRICE $903,073 | $755,112 | 19.6% AVG. DAYS ON MARKET 16 | 14 | 14.3% SOLD/LIST PRICE % 106.5% | 103.9% | 2.5%

Some NWMLS data compiled by Trendgraphix. All property photos courtesy of Coldwell Banker Bain’s Bellevue and Madison Park brokers.

EASTSIDE MARKET REVIEW

BELLTOWN | DOWNTOWN PIONEER SQUARE (CONDOS) YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $327.5M | $611.2M | -46.4% TOTAL HOMES SOLD 413 | 779 | -47.0% AVG. SALES PRICE $792,880 | $784,631 | 1.1% AVG. DAYS ON MARKET 23 | 40 | -42.5% SOLD/LIST PRICE % 101.8% | 100.0% | 1.8%

COLUMBIA CITY | MT. BAKER RAINIER VALLEY | SEWARD PARK YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $313.1M | $229.0M | 36.7% TOTAL HOMES SOLD 435 | 365 | 19.2% AVG. SALES PRICE $719,821 | $627,438 | 14.7% AVG. DAYS ON MARKET 20 | 17 | 17.6% SOLD/LIST PRICE % 105.5% | 103.3% | 2.2%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 9/30/17.

V D B LU X U RY - C O L DW EL L BA N K ER BA I N - B E L L E V U E | MADISON PARK

BEACON HILL NORTH BEACON HILL YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $148.0M | $121.7M | 21.5% TOTAL HOMES SOLD 251 | 238 | 5.5% AVG. SALES PRICE $589,519 | $511,534 | 15.2% AVG. DAYS ON MARKET 20 | 20 | 0.0% SOLD/LIST PRICE % 104.5% | 104.5% | 0.0%

WEST SEATTLE YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $849.9M | $743.8M | 14.3% TOTAL HOMES SOLD 1337 | 1311 | 2.0% AVG. SALES PRICE $635,641 | $567,358 | 12.0% AVG. DAYS ON MARKET 16 | 17 | -5.9% SOLD/LIST PRICE % 104.3% | 103.3% | 1.0%

Some NWMLS data compiled by Trendgraphix. All property photos courtesy of Coldwell Banker Bain’s Bellevue and Madison Park brokers.

SEATTLE MARKET - THIRD QUARTER REVIEW

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

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