South Sound | Coldwell Banker Bain 2021 Q2 Market Report

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SOUTH SOUND 2021 Q2 MARKET REPORT

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Helping people buy and sell homes in the Pacific Northwest since 1972, Coldwell Banker Bain is an undisputed market leader, posting nearly $6 billion in sales in 2020. With 32 offices and more than 1,300 brokers in Washington and Oregon, plus a global reach that extends to 92,000 brokers in 43 countries, we’re not only one of the largest Coldwell Banker affiliates in the world, we’re also the most accomplished real estate company in the Northwest. Our commitment to knowledge, expertise, and market insights consistently undergirds our reputation for excellence and service. An emphasis on global access in the luxury realm, combined with the power, reach and recognition of the Coldwell Banker brand, allows us to outsell and outperform our rivals, as we elevate the standard for marketing premier properties in the Puget Sound area and the Pacific Northwest. As important to us as business success— we also provide services in property management, commercial real estate, real estate investment and relocation management— is the understanding that real estate is more than just a transaction; it’s a key part of building safe, happy and prosperous lives for our clients, our brokers and their families.


JOHN DEELY executive VP of Operations Reflecting on the second-quarter numbers, John Deely, Coldwell Banker Bain Executive Vice President of Operations, said, “We continue on a trajectory that will keep the Puget Sound region at the top of national lists for one of the hottest housing markets. Prices continue their climb with double digit increases in most of our markets, and inventory on hand at about two weeks in the larger areas. While we’re experiencing a bit of moderating activity in June, rather than that being an indication of a flattening of the market, we believe this is a result of our extreme heat events, a typical summer slowdown as schools let out and people start vacationing, and this year, the reopening of the country and discontinuation of COVID restrictions. The dramatic increase in prices and low inventory just continues in such a way that although we have more inventory coming on the market, it is immediately absorbed because of a demand that simply cannot be met. Affordability, especially for first-time homebuyers, continues to be a concern, and given indications from tech companies like Amazon and Microsoft to leasing large office spaces and hiring thousands of employees going forward in our region, drawing people from higher-priced markets like Silicon Valley who have a lot of money to spend, we don’t see much change in this scenario for buyers in the short term. Additionally, with national data of new household formations showing a shortage of more than 500,000 new homes per year for the entire decade, we have a nationwide shortfall of five million new homes. Without regulatory changes, we will not be able to quickly build our way out of this kind of shortfall. It’s a situation major cities and regions across the country will need to address going forward to ensure availability and affordability of homes.”

2021 Q2 SOUTH SOUND MARKET REPORT

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Q2 2021 MARKET REPORT

STEPHANIE CALLEN broker FOR coldwell banker bain puyallup “In this second quarter of 2021, the Pierce County market is effectively all but sold out,” said Stephanie Callen, a broker in the Coldwell Banker Bain of Puyallup office. “Any new listing that comes on the market immediately gains all the attention from buyers in the respective price points. Most of the low inventory is due to sellers feeling uncomfortable listing during the COVID-19 timeframe, epic low interest rates, and a huge bottleneck of preapproved buyers. Sellers are cashing in with an average of seven percent over list price in most areas. Buyers are still waiving all contingencies and offering everything except a paid vacation to win the bid from the sellers. In Pierce County, home prices are up 25.6 percent from this time last year and the number of homes sold is up 42 percent from 3,267 to 4,638. Consecutive days on the market has literally been cut in half from this time last year and is now only nine days. Current home inventory is also down 35 percent from 1083 homes to 711 homes on the market. Gig Harbor and the Key Peninsula saw an incredible increase of 27 percent in their median price - now up to $700,000. Homes are selling at four percent over list price and the average time on the market is 15 days. There are currently only 57 homes available, down 63 percent from this time last year. (continued on page 6)

4 2021 Q2 SOUTH SOUND AREA MARKET REPORT


SOUTH SOUND

SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY

AUBURN | BURIEN & NORMANDY PARK | DES MOINES | FEDERAL WAY GIG HARBOR & KEY PENINSULA | KENT | LAKE TAPPS & BONNEY LAKE

MEDIAN SOLD PRICE (NEAREST $000)

AVERAGE DOM

S. King & Pierce Area

$540K

9

Auburn

$535K

7

Burien & Normandy Park

14

$607K

Des Moines

$560K

8

Federal Way

$557K

8

Gig Harbor & Key Peninsula

15

$700K

Kent

$600K

10

Lake Tapps & Bonney Lake

$601K

13

$100K

$200K

$300K

$400K

$500K

$600K

$700K

$800K

NUMBER OF SALES CLOSED 600

4,638 | TOTAL SALES CLOSED

500

400

(TOTAL SOUTH SOUND AREA)

542

300 200

445

380

324

275

100

291

165

0

Auburn

Burien & Normandy Park

Des Moines

Federal Way

INVENTORY IN UNITS / 06.30.21

Gig Harbor & Key Peninsula

Kent

TOTAL SOUTH SOUND INVENTORY / 711

Lake Tapps & Bonney Lake -34.3%

45

71

16

30

57

62

79

-27.4%

-38.8%

-65.2%

-34.8%

-51.7%

-43.6%

-55.1%

Burien & Normandy Park

Des Moines

Federal Way

Gig Harbor & Key Peninsula

Kent

Lake Tapps & Bonney Lake

1000

Auburn

800

600

2021 Q2 SOUTH SOUND MARKET REPORT

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Q2 2021 MARKET REPORT Inventory is down 9 percent in the University Place area where 366 homes were sold this second quarter, but median price is up over 26 percent to $537,000. Tacoma’s median price is $440,000 with an average day on the market of seven days and currently only 126 homes on the market. A total 937 homes closed in the second quarter in Tacoma. Puyallup is seeing a 26.5 percent increase in its median price from $415,000 in the second quarter of 2020 to $525,000 this quarter. The current inventory is down nearly 26 percent with only 104 homes currently on the market. The exceptionally elevated concentration of buyers seems to be covering all price points – including the luxury markets, where sales prices continue to go up in Pierce County. The median sold price is up 5.5 percent to $1,275,000 and the number of homes closed is up an astonishing 230 percent year-over-year. The average number of days on the market is down 13 percent from 31 days to 27 days, and includes single family homes and condos in the luxury market. We are expecting the usual summer slowdown with the heat of the summer. This year it may mean only eight offers instead of 18. Buyers will still be making healthy offers and waiving all their protections. Demand is not letting up; the market is powering forward and we expect more of the same for the rest of the year.”

6 2021 Q2 SOUTH SOUND AREA MARKET REPORT


SOUTH SOUND

SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY

OLYMPIA | PUYALLUP | TACOMA | UNIVERSITY PLACE, LAKEWOOD & TILLICUM 600 MEDIAN SOLD PRICE (NEAREST $000) 500 Olympia

AVERAGE DOM 8

$485K

400

Puyallup

9

$525K

300

Tacoma

7

$440K

200

University Place,

$537K

Lakewood & 100

11

Tillicum

$320K

0 Condos

13

Waterfront (SF Only)

$930K

23

Luxury ($2+M | SF+C)

$1.275M $300K

$600K

$900K

$1.2M

27

$1.5M

NUMBER OF SALES CLOSED 1000

4,638 | TOTAL SALES CLOSED

800

937

600 400 200

(TOTAL SOUTH SOUND AREA)

628

651 366

285

2936

201

125

0

Olympia

Puyallup

Tacoma

University Place, Lakewood & Tillicum

INVENTORY IN UNITS / 06.30.21

Condos

Waterfront (SF Only)

Luxury ($2+M | SF+C)

TOTAL SOUTH SOUND INVENTORY / 711

-66.9%

47

104

126

74

110

47

101

-20.3%

-25.7%

-2.3%

-8.6%

-47.1%

30.9%

-24.1%

Olympia

Puyallup

Tacoma

University Place, Lakewood & Tillicum

Condos

Waterfront (SF Only)

Luxury ($2+M | SF+C)

2021 Q2 SOUTH SOUND MARKET REPORT

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South sound area TOTAL SOUTH SOUND AREA

Q2 2021

Q2 2020

CHANGE

TOTAL HOMES SOLD

4,638

3,267

+42.0%

MEDIAN SOLD PRICE

$540K

$430K

+25.6%

9

18

-50.0%

106%

100%

+6.0%

Q2 2021

Q2 2020

CHANGE

TOTAL HOMES SOLD

651

424

+53.5%

MEDIAN SOLD PRICE

$320K

$265K

+20.8%

13

18

-27.8%

104%

100%

+4.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$540K MEDIAN SOLD PRICE UP +25.6% from 2020

CONDOS

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

8 2021 Q2 SOUTH SOUND AREA MARKET REPORT

$320K

MEDIAN SOLD PRICE UP +20.8% from 2020


WATERFRONT

Q2 2021

Q2 2020

CHANGE

TOTAL HOMES SOLD

125

86

+45.3%

MEDIAN SOLD PRICE

$930K

$768K

+21.1%

23

41

-43.9%

101%

98%

+3.1%

Q2 2021

Q2 2020

CHANGE

TOTAL HOMES SOLD

201

61

+229.5%

MEDIAN SOLD PRICE

$1.275M

$1.208M

+5.5%

27

31

-12.9%

102%

96%

+6.3%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$930K MEDIAN SOLD PRICE UP +21.1% from 2020

LUXURY

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$1.26M MEDIAN SOLD PRICE UP +5.5% from 2020

2021 Q2 SOUTH SOUND MARKET REPORT

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South sound area AUBURN

Q2 2021

Q2 2020

CHANGE

TOTAL HOMES SOLD

324

199

+62.8%

MEDIAN SOLD PRICE

$535K

$430K

+24.4%

7

15

-53.3%

107%

101%

+5.9%

Q2 2021

Q2 2020

CHANGE

TOTAL HOMES SOLD

380

257

+47.9%

MEDIAN SOLD PRICE

$607K

$513K

+18.3%

14

18

-22.2%

107%

100%

+7.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$535K

MEDIAN SOLD PRICE UP +24.4% from 2020

BURIEN & NORMANY PARK

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

10 2021 Q2 SOUTH SOUND AREA MARKET REPORT

$607K

MEDIAN SOLD PRICE UP +18.3% from 2020


DES MOINES

Q2 2021

Q2 2020

CHANGE

TOTAL HOMES SOLD

165

137

+20.4%

MEDIAN SOLD PRICE

$560K

$455K

+23.1%

8

17

-52.9%

108%

101%

+6.9%

Q2 2021

Q2 2020

CHANGE

TOTAL HOMES SOLD

275

195

+41.0%

MEDIAN SOLD PRICE

$557K

$450K

+23.8%

8

16

-50.0%

107%

101%

+5.9%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$560K MEDIAN SOLD PRICE UP +23.1% from 2020

FEDERAL WAY

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$557K

MEDIAN SOLD PRICE UP +23.8% from 2020

2021 Q2 SOUTH SOUND MARKET REPORT 11


South sound area GIG HARBOR & KEY PENINSULA

Q2 2021

Q2 2020

CHANGE

TOTAL HOMES SOLD

291

192

+51.6%

MEDIAN SOLD PRICE

$700K

$550K

+27.3%

15

40

-62.5%

103%

99%

+4.0%

Q2 2021

Q2 2020

CHANGE

TOTAL HOMES SOLD

445

266

+67.3%

MEDIAN SOLD PRICE

$600K

$494K

+21.5%

10

15

-33.3%

107%

100%

+7.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$700K MEDIAN SOLD PRICE UP +27.3% from 2020

KENT

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

12 2021 Q2 SOUTH SOUND AREA MARKET REPORT

$600K MEDIAN SOLD PRICE UP +21.5% from 2020


LAKE TAPPS & BONNEY LAKE

Q2 2021

Q2 2020

CHANGE

TOTAL HOMES SOLD

542

378

+43.4%

MEDIAN SOLD PRICE

$601K

$493K

+21.9%

13

32

-59.4%

105%

101%

+4.0%

Q2 2021

Q2 2020

CHANGE

TOTAL HOMES SOLD

285

184

+54.9%

MEDIAN SOLD PRICE

$485K

$385K

+26.0%

8

12

-33.3%

105%

100%

+5.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$601K

MEDIAN SOLD PRICE UP +21.9% from 2020

OLYMPIA

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$485K

MEDIAN SOLD PRICE UP +26.0% from 2020

2021 Q2 SOUTH SOUND MARKET REPORT 13


South sound area PUYALLUP

Q2 2021

Q2 2020

CHANGE

TOTAL HOMES SOLD

628

518

+21.2%

MEDIAN SOLD PRICE

$525K

$415K

+26.5%

9

18

-50.0%

105%

101%

+4.0%

Q2 2021

Q2 2020

CHANGE

TOTAL HOMES SOLD

937

671

+39.6%

MEDIAN SOLD PRICE

$440K

$345K

+27.5%

7

12

-41.7%

106%

102%

+3.9%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$525K

MEDIAN SOLD PRICE UP +26.5% from 2020

TACOMA

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

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$440K MEDIAN SOLD PRICE UP +27.5% from 2020


UNIVERSITY PLACE, LAKEWOOD

Q2 2021

Q2 2020

CHANGE

TOTAL HOMES SOLD

366

270

+35.6%

MEDIAN SOLD PRICE

$537K

$425K

+26.4%

11

19

-42.1%

104%

100%

+4.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$537K

MEDIAN SOLD PRICE UP +26.4% from 2020

2021 Q2 SOUTH SOUND MARKET REPORT 15


*Information and statistics derived by CB Bain from the Northwest Multiple Listing Service (NWMLS), Regional Multiple Listing Service (RMLS) and the Multiple Listing Service of Central Oregon (MLSCO) each quarter. Statistics not compiled or published by the NWMLS, RMLS or MLSCO.