Seattle Market Review - Second Quarter 2017

SEATTLE MARKET Q1/Q2 2017 RECAP www.vdbluxury.com

Seattle Market Review

SEATTLE MARKET REVIEW

SEATTLE SNAPSHOT Real Estate Market Recap - Q1/Q2 2017 In the first two quarters of 2017 Seattle’s hot housing market was a national media star. News stories detailed bidding wars, skyrocketing prices, astronomical job growth and waves of foreign investors coming to Seattle. Local real estate got way more attention than the Seahawks’ offseason moves or the Space Needle’s anniversary. Statistics from the first half of the year prove that all the media coverage was justified. The total dollar volume of single family home sales in Seattle grew by 17% over the same period last year; the average sold home price increased by 11%, to an eye-popping $777,200. The Q1/Q2 condominium market experienced even more dramatic price growth: the average sold price for a Seattle condo was up 16% over the first half of 2016. Despite condominiums being a hot housing option for first-time buyers and downsizing boomers alike, the market was held back by a pronounced lack of inventory and unit sales were down 17% over the first half of 2017. With this ongoing struggle between burgeoning demand and tight supply, Seattle’s housing market is certain to remain in the spotlight for the foreseeable future.

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 6/30/17.

Misalignment of employment and housing sectors feeds first-half frenzy Seattle is booming. A robust employment sector is driving higher wages and a commercial building spree. Collegeeducated millennials, relocating tech workers and China’s newly-minted millionaires are moving here in droves. But our housing sector can’t keep pace with this population growth. The current abundance of cranes in Seattle belies the fact that there is way too little housing being built.

Year-to-date sales of new construction homes are down 5% from 2016, due entirely to insufficient supply.

Recent moves by the city to increase density in certain neighborhoods may help. But ultimately our housing shortfall will be alleviated not by new construction, which is constrained by tough zoning regulations and a lack of available land, but by an economic downturn. That seems far-fetched. Amazon alone is bringing tens of thousands of workers to our region and shows no sign of letting up.

The story of today’s Seattle can be written with one word: Jobs. But until that changes, our real estate market will remain hyper-competitive. With 2017 bringing recordhigh home prices, some Seattle homeowners will decide that now is 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.

SEATTLE MARKET REVIEW

$643,300

$721,600

$724,000

$840,300

$453,100

$525,500

$701,900

$777,200

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

SINGLE FAMILY HOMES

CONDOMINIUMS

NEW CONSTRUCTION HOMES

ALL PROPERTY TYPES

11%

16%

16%

12%

In the first half of 2017 the total volume of Seattle residential real estate sales exceeded $4 billion, a new record. The average price of a single family home rose to $777,200, up 11% over the first two quarters of 2016. Both condos and new construction homes saw average prices grow by 16%. Despite tight inventory citywide, unit sales of single family homes in Seattle rose by 6% overall. Unit sales in the Columbia City/Mt. Baker/Rainier Valley/Seward Park area of Southeast Seattle were up 25%, the city’s highest rate of growth.

5868

5788

912

870

1699

1416

3925

4159

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%

-17%

-5%

-1%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 6/30/17.

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

$3.77B

$4.18B

$660M

$731M

$770M

$744M

$2.76M

$3.23B

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

17%

-3%

11%

11%

Of the 16 areas analyzed in this report, every one experienced home price gains in the first two quarters, with ten areas experiencing price growth of at least 10% over the first half of 2016. Home prices in the Maple Leaf/Ravenna/Roosevelt/Wedgwood area led the way, up 17%. Downtown condo prices rose by 16%, to an average of $793,096. Every area saw its average Sold price surpass its average List price.

And the number of Seattle luxury homes sold in Q1/Q2 was up 25% over the same period last year.

20 Days

19 Days

24 Days

24 Days

20 Days

18 Days

18 Days

18 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

0%

-10%

0%

-5%

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

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.

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 $186.6M | $146.3M | 27.5% TOTAL HOMES SOLD 71 | 57 | 24.6% AVG. SALES PRICE $2,627,604 | $2,566,836 | 2.4% AVG. DAYS ON MARKET 42 | 66 | -36.4% SOLD/LIST PRICE % 99.7% | 99.4% | 0.3%

LUXURY WATERFRONT ($2M+) YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $30.0M | $16.6 | 80.6% TOTAL HOMES SOLD 9 | 5 | 80.0% AVG. SALES PRICE $3,331,111 | $3,320,000 | 0.3% AVG. DAYS ON MARKET 84 | 210 | -60.0% SOLD/LIST PRICE % 94.6% | 94.4% | 0.2%

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

SEATTLE MARKET REVIEW

CAPITOL HILL NORTH CAPITOL HILL YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $119.9M | $116.8M | 2.6% TOTAL HOMES SOLD 104 | 112 | -7.1% AVG. SALES PRICE $1,152,666 | $1,043,284 | 10.5% AVG. DAYS ON MARKET 26 | 28 | -7.1% SOLD/LIST PRICE % 103.4% | 102.9% | 0.5%

EASTLAKE | MONTLAKE PORTAGE BAY YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $51.9M | $48.4M | 7.3% TOTAL HOMES SOLD 47 | 45 | 4.4% AVG. SALES PRICE $1,105,021 | $1,075,250 | 2.8% AVG. DAYS ON MARKET 19 | 33 | -42.4% SOLD/LIST PRICE % 103.4% | 100.9% | 2.5%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 6/30/17.

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 $72.5M | $92.1M | -21.3% TOTAL HOMES SOLD 38 | 49 | -22.4% AVG. SALES PRICE $1,907,930 | $1,879,133 | 1.5% AVG. DAYS ON MARKET 29 | 31 | -6.5% SOLD/LIST PRICE % 100.8% | 99.8% | 1.0%

CENTRAL AREA | LESCHI MADISON VALLEY | MADRONA YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $178.4M | $146.9M | 21.5% TOTAL HOMES SOLD 213 | 194 | 9.8% AVG. SALES PRICE $837,714 | $756,963 | 10.7% AVG. DAYS ON MARKET 22 | 23 | -4.3% SOLD/LIST PRICE % 105.0% | 103.7% | 1.3%

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

SEATTLE MARKET REVIEW

BRYANT | HAWTHORNE HILLS SAND POINT | VIEW RIDGE YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $112.4M | $106.5M | 5.6% TOTAL HOMES SOLD 114 | 113 | 0.9% AVG. SALES PRICE $986,232 | $942,202 | 4.7% AVG. DAYS ON MARKET 19 | 16 | 18.8% SOLD/LIST PRICE % 107.1% | 105.1% | 1.9%

LAURELHURST | WINDERMERE YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $71.2M | $58.0M | 22.7% TOTAL HOMES SOLD 39 | 37 | 5.4% AVG. SALES PRICE $1,825,341 | $1,567,953 | 16.4% AVG. DAYS ON MARKET 33 | 50 | -34.0% SOLD/LIST PRICE % 100.9% | 100.6% | 0.3%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 6/30/17.

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 $155.1M | $139.1M | 11.5% TOTAL HOMES SOLD 188 | 197 | -4.6% AVG. SALES PRICE $824,773 | $705,975 | 16.8% AVG. DAYS ON MARKET 11 | 13 | -15.4% SOLD/LIST PRICE % 110.5% | 106.9% | 3.3%

CEDAR PARK | INVERNESS LAKE CITY | MATTHEWS BEACH YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $53.5M | $45.1M | 18.7% TOTAL HOMES SOLD 73 | 67 | 9.0% AVG. SALES PRICE $733,341 | $673,359 | 8.9% AVG. DAYS ON MARKET 16 | 22 | -27.3% SOLD/LIST PRICE % 105.3% | 104.8% | 0.5%

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

SEATTLE MARKET REVIEW

QUEEN ANNE | MAGNOLIA YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $391.4M | $313.4M | 24.9% TOTAL HOMES SOLD 356 | 307 | 16.0% AVG. SALES PRICE $1,099,394 | $1,020,801 | 7.7% AVG. DAYS ON MARKET 19 | 26 | -26.9% SOLD/LIST PRICE % 103.6% |102.5% | 1.0%

BALLARD | BLUE RIDGE CROWN HILL | NORTH BEACH YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $246.1M | $217.0M | 13.4% TOTAL HOMES SOLD 313 | 304 | 3.0% AVG. SALES PRICE $786,283 | $713,783 | 10.2% AVG. DAYS ON MARKET 14 | 15 | -6.7% SOLD/LIST PRICE % 105.3% | 104.7% | 0.6%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 6/30/17.

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

PHINNEY RIDGE | GREENLAKE YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $165.9M | $158.5M | 4.7% TOTAL HOMES SOLD 190 |196 | -3.1% AVG. SALES PRICE $873,005 | $808,473 | 8.0% AVG. DAYS ON MARKET 11 | 13 | -15.4% SOLD/LIST PRICE % 108.9% | 108.0% | 0.9%

FREMONT | WALLINGFORD YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $108.3M | $78.3M | 38.2% TOTAL HOMES SOLD 125 | 105 | 19.0% AVG. SALES PRICE $866,069 | $746,099 | 16.1% AVG. DAYS ON MARKET 18 | 12 | 50.0% SOLD/LIST PRICE % 108.2% | 105.3% | 2.8%

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

SEATTLE MARKET REVIEW

BELLTOWN | DOWNTOWN PIONEER SQUARE (CONDOS) YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $212.5M | $263.6M | -19.4% TOTAL HOMES SOLD 268 | 385 | -30.4% AVG. SALES PRICE $793,096 | $684,659 | 15.8% AVG. DAYS ON MARKET 26 | 38 | -31.6% SOLD/LIST PRICE % 101.2% | 100.1% | 1.1%

COLUMBIA CITY | MT. BAKER RAINIER VALLEY | SEWARD PARK YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $197.1M | $140.1M | 40.7% TOTAL HOMES SOLD 289 | 231 | 25.1% AVG. SALES PRICE $682,163 | $606,424 | 12.5% AVG. DAYS ON MARKET 19 | 17 | 11.8% SOLD/LIST PRICE % 105.7% | 103.7% | 1.9%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 6/30/17.

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 $91.7M | $73.1M | 25.3% TOTAL HOMES SOLD 158 | 144 | 9.7% AVG. SALES PRICE $580,189 | $507,972 | 14.2% AVG. DAYS ON MARKET 22 | 20 | 10.0% SOLD/LIST PRICE % 105.7% | 105.2% | 0.5%

WEST SEATTLE YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $525.7M | $450.5M | 16.7% TOTAL HOMES SOLD 834 | 801 | 4.1% AVG. SALES PRICE $630,334 | $562,443 | 12.1% AVG. DAYS ON MARKET 17 | 17 | 0.0% SOLD/LIST PRICE % 104.8% | 103.8% | 0.9%

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

SEATTLE MARKET - Q1/Q2 2017 RECAP

*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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