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LUXURY MARKET REVIEW ANNUAL RECAP

COLDWELL BANKER BAIN B E L L E V U E | M A D I S O N PA R K


LUXURY MARKET REVIEW

A LOOK INTO LUXURY 2016 Luxury Real Estate Trends In a year that witnessed worldwide upheaval and uncertainty - including Brexit, fluctuations in global securities, and a feisty national election - our local luxury real estate market proved remarkably stable. Sales of Western Washington single family homes priced $2M+ rose dramatically in 2016, with a 33% increase in the number of units sold and a 31% increase in dollar volume over the previous year. The average market time for high-end properties decreased by 12%, further proof of the luxury segment’s strength. Partially due to record lows in the inventory of single family home listings, luxury condominium sales saw tremendous growth in 2016. The number of condos sold above $1M increased by 49% over 2015, while the number of condos sold above $2M shot up by 92%. The demand for luxury properties also led to heavy interest in high-end new construction, a category that was up 30% in units sold. 2016 sales of $2M+ waterfront homes continued their track record of consistent growth, with a 14% increase in dollar volume (to $568 million) and an 11% increase in units sold. Please reference the last pages of this report for luxury waterfront statistics.


The year ahead: 2017 predictions Most Western Washington areas have recently experienced a healthy increase in the number of homes sold above $2M, even as Average Sold Prices remain relatively flat. We expect these trends to continue throughout 2017 as wealthy buyers seek out and invest in lifestyle properties around our region. Once again our strong economy will contribute to the success of the high-end real estate market. Although the second half of 2016 saw a drop in the amount of overseas capital being invested in the region’s luxury properties, this trend will be offset in 2017 by our booming jobs sector. Local companies are thriving - in tech, biotech, medicine, venture capital, law and telecom - and continue to bring well-paid executives into the area. Wealth creation in Western Washington is at an all-time high. As a result, lifestyle properties should continue to attract high-net-worth buyers who live here and also those relocating from other markets. The main question is whether there will be enough inventory of homes to meet this demand. If there is, our region’s luxury housing market is poised to continue its solid growth for the foreseeable future.


LUXURY MARKET REVIEW

142

158

78

101

239

356

441

587

TOTA L L U X URY SA L E S | 2 0 1 6 VS. 2 0 1 5

SINGLE FAMILY HOMES $2M+

CONDOMINIUMS $1M+

NEW CONSTRUCTION HOMES $2M+

WATERFRONT HOMES $2M+

33%

49%

30%

11%

These charts reflect data from the Northwest Multiple Listing Service for homes sold at or above $2,000,000 and for condominiums sold at or above $1,000,000. They reveal that every luxury property type experienced sales growth in 2016. Total sales of single family homes in the $2M+ price category jumped 31%, to over $1.7B in volume. Luxury condo sales made the largest leap, up 49% in units sold and 59% in total volume. With nearly 600 luxury properties sold, 2016 set a record for the most $2M+ homes sold in a single year.

$3,497,500

$3,597,000

$2,821,800

$2,728,000

$1,416,700

$1,512,700

$2,974,300

$2,916,700

AV E R A G E L U X URY HO ME PR ICE | YT D 2 0 1 6 VS. 2 0 1 5

SINGLE FAMILY HOMES $2M+

CONDOMINIUMS $1M+

NEW CONSTRUCTION HOMES $2M+

WATERFRONT HOMES $2M+

-2%

7%

-3%

3%


COLDWELL BANKER BAIN BELLEVUE | MADISON PARK

$497M

$568M

$220M

$276M

$339M

$539M

$1.312B

$1.712B

TOTAL L U X URY SA L E S VO L U ME | 2016 VS. 2015

SINGLE FAMILY HOMES $2M+

CONDOMINIUMS $1M+

NEW CONSTRUCTION HOMES $2M+

WATERFRONT HOMES $2M+

31%

59%

25%

14%

In 2016, growth in both the quantity and dollar volume of luxury home sales reflected a healthy market for high-end properties. At the same time, average sold prices were relatively flat, with only condominiums showing noteworthy price appreciation. The success of the upper-end condo market could be attributed to a classic supply-versus-demand imbalance. While there was a shortage of new luxury condominium projects, there was also a disproportionate amount of downsizing Baby Boomers and foreign investors looking to buy in our region’s downtown cores.

93 Days

94 Days

65 Days

55 Days

56 Days

44 Days

74 Days

65 Days

AV E R A G E D AY S O N MA R KE T | YT D 2016 VS. 2015

SINGLE FAMILY HOMES $2M+

CONDOMINIUMS $1M+

NEW CONSTRUCTION HOMES $2M+

WATERFRONT HOMES $2M+

-12%

-21%

-15%

1%


LUXURY MARKET REVIEW

SEAT T L E 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $362.4 MILLION | $286.9 MILLION | 26.3% TOTAL HOMES SOLD 131 | 104 | 26.0% AVG. SALES PRICE $2,766,700 | $2,758,700 |0.3% AVG. DAYS ON MARKET 60 | 72 | -16.7% SOLD/LIST PRICE % 98.6% | 97.6% | 1.0% Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes sold for $2,000,000 or higher.


COLDWELL BANKER BAIN BELLEVUE | MADISON PARK

EA S T S ID E 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $1.182 BILLION | $923.6 MILLION | 28.0% TOTAL HOMES SOLD 401 | 299 | 34.1% AVG. SALES PRICE $2,947,900 | $3,089,000 | -4.6% AVG. DAYS ON MARKET 50 | 60 | -16.7% SOLD/LIST PRICE % 97.1% | 96.3% | 0.8% NWMLS sales data compiled by Trendgraphix. All property photos courtesy of Coldwell Banker Bain’s Bellevue and Madison Park offices.


LUXURY MARKET REVIEW

BELLEVUE: EAST & SOUTH Bridle Trails | Glendale | Lakemont Newport Shores | Somerset | The Summit 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $89.1M | $107.7M | -17.3% TOTAL HOMES SOLD 29 | 37 | -21.6% AVG. SALES PRICE $3,071,600 | $2,911,400 | 5.5% AVG. DAYS ON MARKET 60 | 37 | 62.2% SOLD/LIST PRICE % 96.7% | 97.1% | -0.4%

CLYDE HILL & WEST BELLEVUE Beaux Arts | Downtown Bellevue | Enatai Hunts Point | Vuecrest | Yarrow Point 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $514.1M | $380.1M | 35.2% TOTAL HOMES SOLD 179 | 114 | 57.0% AVG. SALES PRICE $2,871,800 | $3,334,000 | -13.9% AVG. DAYS ON MARKET 52 | 60 | -13.3% SOLD/LIST PRICE % 97.4% | 97.2% | 0.2%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes sold for $2,000,000 or higher.


COLDWELL BANKER BAIN BELLEVUE | MADISON PARK

ISSAQUAH & SAMMAMISH Aldarra | Beaver Lake | East Lake Sammamish Issaquah Highlands | Pine Lake | Windsor Greens 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $70.6M | $40.2M | 75.9% TOTAL HOMES SOLD 24 | 16 | 50.0% AVG. SALES PRICE $2,943,400 | $2,509,800 | 17.3% AVG. DAYS ON MARKET 37 | 66 | -43.9% SOLD/LIST PRICE % 98.0% | 95.1% | 3.0%

KIRKLAND Carillon Point | Downtown | East of Market Holmes Point | Houghton | West of Market 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $121.1M | $79.9M | 51.5% TOTAL HOMES SOLD 46 | 33 | 39.4% AVG. SALES PRICE $2,631,400 | $2,421,400 | 8.7% AVG. DAYS ON MARKET 33 | 41 | -19.5% SOLD/LIST PRICE % 97.4% | 94.8% | 2.7%

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


LUXURY MARKET REVIEW

MEDINA 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $122.6M | $107.5M | 14.1% TOTAL HOMES SOLD 34 | 33 | 3.0% AVG. SALES PRICE $3,607,000 | $3,256,500 | 10.8% AVG. DAYS ON MARKET 35 | 65 | -46.2% SOLD/LIST PRICE % 97.9% | 96.7% | 1.2%

MERCER ISLAND 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $184.9M | $179.5M | 3.1% TOTAL HOMES SOLD 59 | 53 | 11.3% AVG. SALES PRICE $3,135,500 | $3,386,800 | -7.4% AVG. DAYS ON MARKET 62 | 73 | -15.1% SOLD/LIST PRICE % 95.7% | 95.1% | 0.6%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes sold for $2,000,000 or higher.


COLDWELL BANKER BAIN BELLEVUE | MADISON PARK

REDMOND & WOODINVILLE Bear Creek | Blakely Woods | Hollywood Hill Lake of the Woods | Novelty Hill | Union Hill 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $51.1M | $13.3M | 285.0% TOTAL HOMES SOLD 18 | 6 | 200.0% AVG. SALES PRICE $2,838,400 | $2,211,700 | 28.3% AVG. DAYS ON MARKET 63 | 111 | -43.2% SOLD/LIST PRICE % 96.4% | 95.2% | 1.3%

SEATTLE: DOWNTOWN, MAGNOLIA & QUEEN ANNE * Belltown | Lake Union | Magnolia Queen Anne | South Lake Union 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $199.9M | $109.7M | 82.2% TOTAL HOMES SOLD 73 | 43 | 69.8% AVG. SALES PRICE $2,737,800 | $2,550,900 | 7.3% AVG. DAYS ON MARKET 49 | 91 | -46.2% SOLD/LIST PRICE % 99.1% | 97.2% | 2.0% *Condo sales included for this one are (no single family homes Downtown)

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


LUXURY MARKET REVIEW

SEATTLE: EAST Broadmoor | Capitol Hill | Denny Blaine | Madrona Madison Park | Montlake | Washington Park 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $157.1M | $119.3M | 31.7% TOTAL HOMES SOLD 57 | 45 | 26.7% AVG. SALES PRICE $2,757,000 | $2,650,700 | 4.0% AVG. DAYS ON MARKET 41 | 57 | -28.1% SOLD/LIST PRICE % 98.6% | 98.3% | 0.3%

SEATTLE: NORTHEAST Bryant | Hawthorne Hills | Inverness | Laurelhurst | Ravenna View Ridge | Windermere 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $67.4M | $61.8M | 9.1% TOTAL HOMES SOLD 21 | 20 | 5.0% AVG. SALES PRICE $3,210,700 | $3,090,400 | 3.9% AVG. DAYS ON MARKET 113 | 21 | 438.1% SOLD/LIST PRICE % 98.7% | 99.1% | -0.4%

Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes sold for $2,000,000 or higher.


COLDWELL BANKER BAIN BELLEVUE | MADISON PARK

SEATTLE: NORTHWEST Broadview | Green Lake | Innis Arden | North Beach Phinney Ridge | The Highlands | Wallingford 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $4.4M | $30.8M | -85.7% TOTAL HOMES SOLD 2 | 11 | -81.8% AVG. SALES PRICE $2,200,000 | $2,802,900 | -21.5% AVG. DAYS ON MARKET 7 | 93 | -92.5% SOLD/LIST PRICE % 100.0% | 93.3% | 7.2%

SEATTLE: SOUTH & WEST Alki | Beach Drive | Fauntleroy | Leschi North Admiral | Mt. Baker | Seward Park 2016 | 2015 | % CHANGE TOTAL SALES VOLUME $42.3M | $21.7M | 94.7% TOTAL HOMES SOLD 14 | 8 | 75.0% AVG. SALES PRICE $3,023,700 | $2,718,100 | 11.2% AVG. DAYS ON MARKET 78 | 203 | -61.6% SOLD/LIST PRICE % 95.8% | 92.4% | 3.7%

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


LUXURY MARKET REVIEW

Life at the Water's Edge From Lake Sammamish to the San Juan Islands, high-end waterfront properties are the pinnacle of luxury living. Representing only about 20% of all luxury homes sold in our region, waterfront is the most glamorous and scrutinized market segment. With little inventory to choose from at any given time, and with the best-situated homes changing hands infrequently, prospective waterfront buyers face unique challenges. To achieve their goals, they must initially be more patient, then strike faster and be willing to pay a premium when a coveted property comes to market. Luxury waterfront home sales experienced minimal growth in 2016. The number of properties sold was flat compared to the previous year, while total sales volume increased by 4.3%, lagging behind market averages. This can be explained by two primary factors: a lack of waterfront listings during the first half of the year when demand was at its peak, and a drop in the number of affluent foreign buyers during the second half of the year. Although luxury waterfront sales trailed the rest of the real estate market, they still set a record in 2016 with half a billion dollars in properties sold. The chart to the right details market trends for luxury properties in various waterfront communities.


COLDWELL BANKER BAIN BELLEVUE | MADISON PARK

2015

% CHG

2016

2015

% CHG

Bellevue

15

18

-16.7%

$4,104,466

$4,239,388

-3.2%

Hunts Point

4

4

0%

$5,504,500

$8,072,500

-31.8%

Kenmore / Lake Forest Park

3

4

-25%

$2,354,983

$2,760,250

-14.7%

Kirkland

14

11

27.3%

$3,231,270

$2,406,409

34.3%

Medina

5

3

66.7%

$5,220,110

$4,797,667

8.8%

Mercer Island

24

22

9.1%

$4,128,295

$4,634,455

-10.9%

Renton

0

2

-

$0

$2,112,500

-

Seattle

12

14

-14.3%

$4,712,708

$3,715,535

26.8%

Yarrow Point

4

5

-20%

$4,250,000

$5,500,087

-22.7%

Bellevue

5

11

-54.5%

$3,037,184

$2,483,181

22.3%

Issaquah

2

3

-33.3%

$2,673,500

$2,475,000

8%

Redmond

4

2

100%

$3,062,500

$2,250,000

39.2%

Sammamish

9

4

125%

$3,185,277

$2,462,250

29.4%

Bainbridge Island

7

7

0%

$3,505,507

$2,540,142

38%

Edmonds / Woodway

3

1

200%

$4,791,667

$2,340,000

104.8%

Gig Harbor

2

2

0%

$2,050,000

$2,420,000

-15.3%

Normandy Park

2

1

100%

$2,437,500

$2,400,000

1.6%

San Juan Islands

7

8

-12.5%

$3,069,643

$3,026,275

1.4%

Seattle / Richmond Beach

3

4

-25%

$2,425,000

$2,582,500

-6.1%

Whidbey Island

1

1

0%

$5,100,000

$2,988,888

70.6%

Lake Union

3

3

0%

$2,489,167

$2,621,667

-5.1%

Portage Bay

1

0

-

$2,750,000

$0

-

PUGET SOUND

LAKE SAMMAMISH

LAKE WASHINGTON

2016

LU

CITY

AVERAGE SALES PRICE ($2M+)

PB

CLOSED SALES ($2M+)

Based on information from the Northwest Multiple Listing Service, data compares 2016 and 2015 sales of $2M+ waterfront single family homes.


COLDWELL BANKER BAIN BELLEVUE 150 BELLEVUE WAY SE, BELLEVUE, WA 98004 | 425.454.0470 | CBBAIN.COM/BELLEVUE

COLDWELL BANKER BAIN MADISON PARK 4227 EAST MADISON STREET, SEATTLE, WA 98122 | 206.328.1011 | CBBAIN.COM/MADISONPARK

Coldwell Banker Bain: Luxury Market Review - 2016 Recap  

An analysis of recent luxury housing market trends in Western Washington, including statistics on waterfront property sales

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