Pacific Northwest Market Report - Q4 2023 - North Region

Q4 2023

PUGE T S O UN D • SW WAS H INGT ON • OR EG ON

PAC I F I C N O R T H W ES T

Q4

2023 MARKET REPORT

ABOUT THIS REPORT The Berkshire Hathaway HomeServices Quarterly Market Report features the latest MLS data and local market statistics. Through year-over-year comparisons of key performance indicators and market summaries, this report delivers a comprehensive overview of residential real estate activity for the regions we service across the Pacific Northwest, including: • Greater Seattle Metro Area (King, Pierce, Snohomish, and Thurston) • Southwest Washington (Vancouver Metro Area) • Greater Portland Metro Area • Mid-Willamette Valley (Marion, Polk, Linn, and Benton) • Eugene, Coastal, and Southern Oregon (Lane, Tillamook, and Douglas) • Central Oregon

Learn about trends affecting sales activity and price, read decisive takeaways for each market, and empower yourself with Northwest Knowledge.

ABOUT US Since 1942, we’ve been helping people buy and sell homes in Oregon and Washington. With 33 offices and a growing regional network of nearly 1,000 real estate professionals, we lead the Northwest in delivering exceptional service backed by data-driven market intelligence, just like you’ll find throughout this report.

For more information and assistance to help successfully navigate today’s real estate market, contact your local Berkshire Hathaway HomeServices broker.

We are All statistics are based upon MLS data for the period of 10/01/23 - 12/31/23.

BERKSHIRE HATHAWAY HOMESERVICES

PAC I F I C N O R T H W ES T

Q4

2023 MARKET REPORT

LET TER FROM THE EDITOR Market performance for the final quarter of Pacific Northwest residential real estate did not reveal too many seasonal surprises. Sales activity was down across the board, a reflection of the usual holiday slowdown as well as higher rates that continued to impact affordability, keeping some buyers in “wait and see” mode.

Those buyers who remained in the market were serious about purchasing, and low inventory meant stable or in some instances, increased prices for many areas throughout the Pacific Northwest. With a more favorable interest rate scenario projected in the coming months, sidelined buyers will likely re-enter the market, creating a faster-moving market as competition increases.

With an influx of returning (and new) buyers, there is cautious optimism that sellers who also have been ‘rate-locked’ will begin to return to the market. For sellers, this means working closely with your Berkshire Hathaway HomeServices real estate professional to determine a price that’s competitive yet beneficial based on local trends and your real estate goals.

Whether buying or selling in 2024, I encourage you to use this Q4 2023 Market Report as your qualitative guide and enlist the expertise of a Berkshire Hathaway HomeServices professional to serve as your trusted confidant and lifelong real estate advisor.

Melanie Weidenbach, President & CEO

LET TER FROM THE EDITOR

BERKSHIRE HATHAWAY HOMESERVICES

Greater Seattle Metro Area (King, Pierce, Snohomish, and Thurston) The end of 2023 saw home prices on the rise throughout the Greater Seattle Metro Area, as the number of new and active listings fell to lower levels than this time last year. Market activity was down across the region, yet the average days on market decreased, reflecting a faster market impacted by a mix of low inventory and buyer demand.

DAYS ON MARKET Days on market throughout the Greater Seattle Metro Area fell 8% from the previous year to an average of 33 days this quarter.

Notably, average days on market in Mercer Island dropped 46% from year-ago figures to just 19 days, the lowest average posted in the region. Average days on market in Pierce, Snohomish, and Thurston Counties were also down, declining year-over-year by 7%, 22%, and 10%, respectively.

CLOSED TRANSACTIONS Closed transactions (10,013) decreased 15% from year-ago figures. While almost every Greater Seattle Metro Area city surveyed in this report saw year-over-year declines in closed units, in Bellevue, closed units increased 11% to 354 and in Redmond/Carnation, closed units increased 3% to 218. Closed units also rose 2% in Central Seattle to end Q4 2023 at 265.

PENDING SALES, NEW LISTINGS, & ACTIVE LISTINGS In the Greater Seattle Metro Area, pending sales (9,215) were down 3%, new listings (9,366) dropped 12%, and active listings (16,899) missed the mark by 19% compared with Q4 2022.

AVERAGE SALES PRICE Average sales price ($837,838) was up 6% in Q4 2023 compared to Q4 2022. Mercer Island posted the highest average sales price for the region – $2,329,669 – though this price represents a 12% decline from year-ago figures. On a percentage basis, average sales price increased the most in Gig Harbor/Key Peninsula, where the average price of $994,690 represented an 18% year-over-year rise. Sales prices in Bellevue also jumped, increasing to $1,709,005, a 10% climb from the average price this time the prior year.

Q4

PAC I F I C N O R T H W ES T

2023 MARKET REPORT

GREATER SEATTLE METRO AREA 2022

AVERAGE SOLD PRICE $966,950

KING COUNTY PIERCE COUNTY

32

$577,216

41

$595,726

38

$742,546

37

$750,030

29

$524,788

40

$530,535

36

WEST SEAT TLE

$858,066

28

$883,642

26

CENTRAL SEAT TLE NORTH SEAT TLE BURIEN/ NORMANDY PARK KENT

32

$1,017,639

SNOHOMISH COUNTY THURSTON COUNTY

$1,060,434

33

$998,961

34

$1,020,101

24

$1,035,324

32

$655,796

31

$625,357

34

$600,152

41

$624,745

37 $1,552,154

BELLEVUE FEDERAL WAY/ DASH POINT

PUYALLUP

23

$528,067

30

$570,578

33 $840,189

49

$994,690

41

$523,438

35

$518,769

34

$547,137

45

$563,406

41

$777,852

LYNNWOOD/ EDMONDS EVERET T

28

$1,709,005

GIG HARBOR/KEY PENINSULA TACOMA/ UNIVERSITY PLACE

31

$830,624

24

$593,546

36

$617,981

25 $2,644,886

MERCER ISLAND

KIRKLAND/BRIDLE TRAILS

$0K

19

$1,311,718

40

$1,326,714

26

$1,342,848

28

$1,414,027

JUANITA/ WOODINVILLE

LACEY/ DUPONT

35

$2,329,669

REDMOND/ CARNATION

OLYMPIA

AVERAGE DAYS ON MARKET

2023

21

$1,248,907

33

$1,251,098

28

$567,262

38

$573,542

38

$510,346

42

$508,272

28

$375K

GREATER SEAT TLE METRO AREA

$750K

$1.1M

$1.5M

$1.8M

$2.2M

$2.6M

$3M

$3.3M

BERKSHIRE HATHAWAY HOMESERVICES

Q4

PAC I F I C N O R T H W ES T

2023 MARKET REPORT

GREATER SEATTLE METRO AREA 2023

2022

NUMBER OF CLOSED UNITS

11,000 10,000

900

9,000

800

8,000

700

7,000

600

6,000

500

5,000

5,555

400

5,100

4,000

300

3,000

200 2,759

2,000

2,073

2,523

319 278

259

265

298

289 254

216

318

297

354

224

219

100

2,085

204

177

143

GIG HARBOR/ KEY PENINSULA

FEDERAL WAY/ DASH POINT

BELLEVUE

KENT

BURIEN/ NORMANDY PARK

NORTH SEAT TLE

WEST SEAT TLE

755

THURSTON COUNTY

SNOHOMISH COUNTY

PIERCE COUNTY

KING COUNTY

877

CENTRAL SEAT TLE

1,000

1,750

700

1,500

600

1,250

500

1,000

218

277

500

729

250

100

275

TACOMA/ UNIVERSITY PLACE

KIRKLAND/ BRIDLE TRAILS

REDMOND/ CARNATION

GREATER SEAT TLE METRO AREA

524 369

396 328

376

89

JUANITA/ WOODINVILLE

96

42

MERCER ISLAND

43

570

OLYMPIA

211

834

EVERET T

200

750

LYNNWOOD/ EDMONDS

311

PUYALLUP

300

303

252

234

LACEY/DUPONT

400

BERKSHIRE HATHAWAY HOMESERVICES

Southwest Washington (Vancouver Metro Area) Higher interest rates, higher levels of inflation, and an expected seasonal slowdown impacted residential real estate activity in Southwest Washington this quarter. New listings, active listings, closed units, and pending sales all posted declines. Home prices continued to rise throughout the Vancouver Metro Area, though the rate of appreciation has noticeably decreased.

DAYS ON MARKET In Southwest Washington, average days on market – 40 days – remained unchanged from this time last year. On a city-by-city basis, some areas experienced slower markets while others were faster. Woodland’s average days on market (44 days) increased 38% from year-ago figures.

However, in Vancouver, average days on market fell 13% compared with this time last year, ending the quarter at an average of 33 days.

AVERAGE SALES PRICE Average sales price increased 2% year-over-year to $591,655. In Woodland, average sales price jumped 19% year-over-year to $556,381. Camas posted the highest average sales price in the region – $789,410. Still, this figure represents a 2% decline from this time last year.

CLOSED TRANSACTIONS & PENDING SALES Closed transactions in the Vancouver Metro Area missed the mark by 19%, finishing Q4 2023 at 1,232 compared with 1,526 last year. And while some cities followed this trend – in Washougal, 55 closed units this quarter represented a 38% decline from last year – others went against it.

Woodland experienced a 48% year-over-year jump in closed units (40), and La Center posted a 33% rise in closed units (28). Pending sales fell 8% to end Q4 2023 at 1,141.

NEW LISTINGS & ACTIVE LISTINGS Compared with year-ago figures, new listings (1,374) were down 9%, and active listings (2,643) decreased 8%.

Q4

PAC I F I C N O R T H W ES T

2023 MARKET REPORT

SW WASHINGTON METRO AREA 2022

2023

AVERAGE DAYS ON MARKET

AVERAGE SOLD PRICE $517,348

VANCOUVER

38

$540,131

33 $639,614

WASHOUGAL

45

$625,471

BAT TLE GROUND

59

$615,242

49

$618,528

46

$466,092

WOODLAND

32 $556,381

44 $650,648

LA CENTER

42

$610,911

54 $730,179

RIDGEFIELD

48

$695,851

61

CAMAS LONGVIEW/ KELSO

$200K

$808,000

32

$789,410

33

$370,921

40

$363,703

44

$300K

$400K

$500K

$600K

$700K

$800K

$900K

325 2000

300

1800

250

1600

225

1400

200

153

798

125

600

100

400

75

200

50

123 105

98

88

79 55 40

WOODLAND

BAT TLE GROUND

WASHOUGAL

VANCOUVER

151

130

27

SW WASHINGTON METRO AREA

146

28

21

LONGVIEW/ KELSO

800

150 983

CAMAS

1000

175

RIDGEFIELD

1,263 1,252

LA CENTER

1200

NUMBER OF CLOSED UNITS

BERKSHIRE HATHAWAY HOMESERVICES

Greater Portland Metro Area Throughout the Greater Portland Metro Area, new listings, active listings, closed transactions, and pending sales all declined compared with Q4 of 2022. Lack of inventory continues to keep average prices afloat (and slightly higher than last year), as the buyers that remain encounter limited supply to satisfy their demand.

DAYS ON MARKET Average days on market jumped 19%, ending Q4 2023 at 43 days. The Greater Portland Metro Area market was noticeably slower in most cities surveyed for this report, rising the highest on a percentage-basis in Canby, where average days on market increased to 68 days, a 143% year-over-year jump. Conversely, other areas of the region saw faster-moving markets; in Northeast and North Portland, average days on market fell 11% and 10% from year-ago figures to end Q4 2023 at 31 and 35 days, respectively.

NEW LISTINGS, ACTIVE LISTINGS, & PENDING SALES New listings (5,102) decreased 4% from this time last year, active listings (10,487) dropped 3% and pending sales edged down 4% to finish the quarter at 4,179.

AVERAGE SALES PRICE Average sales price in the Greater Portland Metro Area ($591,140) was 1% higher than this time the previous year.

Analyzing average sales prices in each city yields mixed results. Average sales price in Newberg, for instance, declined 15% year-over-year to $472,142, yet average sales price in Yamhill/Carlton – $585,258 – increased 16% from year-ago figures.

CLOSED TRANSACTIONS Closed transactions (4,553) decreased 14% compared with Q4 2022. In Tigard/Tualatin, closed transactions fell 47% from year-ago figures to 101 units this quarter.

And while most cities experienced declines in closed transactions, three cities in the Greater Portland Metro Area saw closed units increase from this time last year: Lake Oswego (153), Wilsonville (84), and Yamhill/Carlton (24), where closed units climbed by 17%, 29%, and 14%, respectively.

Q4

PAC I F I C N O R T H W ES T

2023 MARKET REPORT

GREATER PORTLAND METRO AREA 2022

2023

AVERAGE DAYS ON MARKET

AVERAGE SOLD PRICE $722,126

PORTLAND - W

41

$702,284

45

$498,806

PORTLAND - N

39

$479,214

35

$569,412

PORTLAND - NE

35

$584,204

31

$514,027

PORTLAND - SE

37

$489,328

38 $726,958

NW WASHINGTON COUNTY

35

$719,542

48 $1,019,425

LAKE OSWEGO

40

$871,892

41

$473,696

GRESHAM/ TROUTDALE

40

$466,560

SANDY MILWAUKIE/ CLACKAMAS/ HAPPY VALLEY

39

$525,877

29

$537,681

56

$566,271

32

$546,973

45

$620,920

OREGON CITY

34

$688,611

35

$559,791

CANBY

28

$601,046

68

$538,737

BEAVERTON/ ALOHA

34

$536,120

35

$580,856

TIGARD/ TUALATIN

36

$655,965

69

$702,619

WILSONVILLE

29

$757,541

HILLSBORO/ FOREST GROVE

43

$561,583

36

$547,501

38 $720,889

SHERWOOD

35

$736,747

51

$544,211

MCMINNVILLE

30

$477,614

51

$506,562 $585,258

YAMHILL/ CARLTON

41 43

$555,629

NEWBERG

$250K

43

$821,269

WEST LINN

COLUMBIA COUNTY

28

$1,111,011

47

$472,142

62

$407,351

43

$446,828

$375K

GREATER PORTLAND METRO AREA

56

$500K

$625K

$750K

$875K

$1M

$1.25 M

$1.5 M

BERKSHIRE HATHAWAY HOMESERVICES

Q4

PAC I F I C N O R T H W ES T

2023 MARKET REPORT

GREATER PORTLAND METRO AREA

1600

1500 1400

2023

2022

1300

NUMBER OF CLOSED UNITS

1200 1100 1000 900 800 700 661

600

478

416

414

414 378

344

300 270

249

161

153 102

LAKE OSWEGO

NW WASHINGTON COUNTY

PORTLAND - SE

PORTLAND - N

PORTLAND - NE

131

110

80

74

65

CANBY

100

PORTLAND - W

262 235

MILWAUKIE/ CLACKAMAS/ HAPPY VALLEY

257 214

GRESHAM/ TROUTDALE

243

WEST LINN

200

OREGON CITY

400

545

509

BEAVERTON/ ALOHA

500

700 600 500 400 300

337 275

GREATER PORTLAND METRO AREA

117

45

112

85

21

24

93

89

NEWBERG

74

YAMHILL/ CARLTON

137 83

SANDY

SHERWOOD

90

84

HILLSBORO/ FOREST GROVE

65

WILSONVILLE

101

MCMINNVILLE

189

TIGARD/ TUALATIN

100

COLUMBIA COUNTY

200

BERKSHIRE HATHAWAY HOMESERVICES

Mid-Willamette Valley (Marion, Polk, Linn, and Benton) Due in part to the usual seasonal cooldown, the real estate market in the Mid-Willamette Valley felt the winter chill. New listings, active listings, closed transactions, pending sales, and sales prices were all lower than this time last year, while homes stayed on the market longer. As winter in the MidWillamette Valley thaws into spring, expect sales activity to warm along with the weather.

DAYS ON MARKET In the Mid-Willamette Valley, average days on market (52) was up 24% from this time last year. In Stayton, days on market skyrocketed 71% year-over-year, to end Q4 2023 at an average of 48 days.

AVERAGE SALES PRICE Average sales price ($435,358) fell 1% compared with this time last year. In Independence, average sales price declined 12% to $401,053, but Stayton proved a bright spot for the region; average sales price was up 86% year-over-year, finishing the quarter at $618,135 compared with $332,011 in Q4 2022.

PENDING SALES, NEW LISTINGS, & ACTIVE LISTINGS Pending sales in Marion and Polk Counties (795) missed the mark by 5% from year-ago figures, new listings (966) dropped 9%, and active listings (2,106) declined 11%.

HOME SALES Closed transactions (860) were down 11% from year-ago figures. On a percentage basis, closed units dropped the most in Independence, falling 36% year-over-year to 18. In Stayton, closed units went against the regional trend, rising 21% compared with this time last year, to end Q4 2023 at 17.

PAC I F I C N O R T H W ES T

Q4

2023 MARKET REPORT

MID-WILLAMETTE VALLEY 2022

2023

AVERAGE DAYS ON MARKET

AVERAGE SOLD PRICE $431,794

SALEM/ KEIZER

40

$423,635

52

$332,011

STAYTON

28 $618,135

DALLAS

$426,337

42

$426,689

57

$452,762

MONMOUTH

51

$407,402

37

$455,176

INDEPENDENCE

66

$401,053

PHILOMATH ALBANY

50 $465,242

32

$462,444

42

$446,767

39

$447,376

44

CORVALLIS LEBANON

$519,530

39

$519,711

39

$376,682

71

$380,221

58

$314,494

SWEET HOME

63

$332,767

$0K

MID-WILLAMET TE VALLEY

$100K

$200K

48

$300K

70

$400K

$500K

$600K

BERKSHIRE HATHAWAY HOMESERVICES

Q4

PAC I F I C N O R T H W ES T

2023 MARKET REPORT

MID-WILLAMETTE VALLEY 2023

2022

NUMBER OF CLOSED UNITS 1200 1000 800 600

638 531

400 200

320

SALEM/ KEIZER

300 280 260 240 220

216

200 180 160 140

134

120

137 113

100 98

80

90

90 72

60

52

40

40

MID-WILLAMET TE VALLEY

16

SWEET HOME

18

LEBANON

18

CORVALLIS

28

ALBANY

20

PHILOMATH

MONMOUTH

21

17

DALLAS

STAYTON

14

INDEPENDENCE

20

BERKSHIRE HATHAWAY HOMESERVICES

Eugene, Coastal,& Southern Oregon (Lane, Tillamook, and Douglas) Homes in Eugene, Coastal, and Southern Oregon prices edged slightly lower and spent more time on the market this quarter. However, there are strong indications that market activity is on the rise – new listings, active listings, and pending sales all posted Q4 gains.

DAYS ON MARKET In Eugene, Coastal, and Southern Oregon, average days on market increased year-over-year by 21% to an average of 46 days this quarter. In Eugene, average days on market jumped 36% to 38 days but in Tillamook, average days on market fell 79% to an average of 19 days, the fastest-moving average posted in the region this quarter.

CLOSED TRANSACTIONS In Q4 2023, closed transactions (1,151) dropped 11% from yearago figures. Both Sweet Home and Lebanon went against this regional trend; closed units in Sweet Home (52) increased by 30% from this time last year and closed units in Lebanon (90) increased 25% compared with Q4 2022. Conversely, closings in Oceanside fell 85% year-over-year to end Q4 2023 at 2, and Albany was down 38% at 134 transactions.

NEW LISTINGS, ACTIVE LISTINGS, AND PENDING SALES New listings increased 1% to 1,284, active listings climbed 12% to 2,723 and pending sales also increased, rising 6% from year-ago figures to finish Q4 2023 at 1,082.

AVERAGE SALES PRICE Throughout Eugene, Coastal, and Southern Oregon, average sales price fell 2% year-over-year to $424,675 compared with $434,808 this quarter last year. Evaluating market performance in each city, only Netarts, Sweet Home, and Lebanon posted average sales price increases. In Netarts, average sales price ($438,722) rose 7% from Q4 2022, in Sweet Home, average sales price ($332,767) climbed 6% from year-ago figures and in Lebanon, average sales price ($380,221) was up 1% compared to this time last year.

Q4

PAC I F I C N O R T H W ES T

2023 MARKET REPORT

EUGENE, COASTAL, & SOUTHERN OREGON 2022

2023

AVERAGE DAYS ON MARKET

AVERAGE SOLD PRICE EUGENE

38 40

$325,299

51

$311,626

GARIBALDI

15 $445,500

100

$357,500

TILLAMOOK

90

$240,000

19 $411,833

NETARTS

72

$438,722

74 $588,917

$150K

EUGENE, COASTAL, & SOUTHERN OREGON

39

$497,000

$0

FLORENCE

$0K

28

$384,481

ROSEBURG

OCEANSIDE

$485,802 $483,998

72

$410,929

55

$403,484

70

$300K

$450K

$600K

$750K

$900K

BERKSHIRE HATHAWAY HOMESERVICES

PAC I F I C N O R T H W ES T

Q4

2023 MARKET REPORT

EUGENE, COASTAL, & SOUTHERN OREGON 2022 850

2023

NUMBER OF CLOSED UNITS

800 750 700

130

650

120

600

110

550

100

500

80 412

77

70

350

74

60

300

50

250

40

200

30 135

100

121

20 10

EUGENE, COASTAL, & SOUTHERN OREGON

5

2

1

6

8

13

OCEANSIDE

ROSEBURG

EUGENE

3

NETARTS

50

2

FLORENCE

150

TILLAMOOK

400

90

494

GARIBALDI

450

BERKSHIRE HATHAWAY HOMESERVICES

Central Oregon The Q4 2023 market in Central Oregon was a tale of mixed reviews. New listings were up, active listings edged down. Average days on market lengthened, and closed units dropped, reflecting slower sales activity overall. Central Oregon prices remained on the rise, increasing from year-ago figures as inventory levels remained seasonably low.

AVERAGE SALES PRICE In Central Oregon, average sales price increased 5% year-over-year to finish Q4 2023 at $758,865. Average sales price in Sunriver jumped to $839,946, a 38% rise compared with Q4 of 2022. Average sales price in Bend ($855,237) was up 2% from year-ago figures, and this number represented the highest average sales price posted for the region this quarter.

CLOSED TRANSACTIONS & PENDING SALES Closed transactions (777) fell 18% compared with this time last year. Closed units were down across the board in Central Oregon, dropping 33% in Redmond/ Terrebonne (155), 17% in Sunriver (30), and 15% in Bend (471). Pending sales increased by just 1%, ending the quarter at 704.

NEW LISTINGS & ACTIVE LISTINGS New listings (826) increased 7% year-over-year, while active listings (1,973) fell a slight 1% in Q4 compared with this time in 2022.

DAYS ON MARKET Days on market increased 20% year-over-year to end Q4 at 55 days throughout Central Oregon. In Sunriver, days on market had the highest percentage jump, rising 50% from year-ago figures to an average of 60 days.

PAC I F I C N O R T H W ES T

Q4

2023 MARKET REPORT

CENTRAL OREGON 2022

2023

AVERAGE DAYS ON MARKET

AVERAGE SOLD PRICE $841,480

BEND

53

$514,353

REDMOND/ TERREBONNE

46

$554,035

57

$606,463

SUNRIVER

$0K

44

$855,237

40 $839,946

$150K

$300K

$450K

$600K

$750K

60

$900K

450 NUMBER OF CLOSED UNITS 400 1,200

350

1,050

300

900

250

750

200

600 450

557 471

150

300

100

150

50

232

155

CENTRAL OREGON

30

SUNRIVER

REDMOND/ TERREBONNE

BEND

36

BERKSHIRE HATHAWAY HOMESERVICES

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