Jennifer Anderson | 2021 Annual Market Report

SOUTH SOUND 2021 Annual MARKET REP ORT

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 34 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.

MIKE GRADY President & Chief Executive Officer of Coldwell Banker Bain “It’s been 20 months since this hyper-market started and, from a numbers perspective, no one predicted anything like what we experienced in 2021. We ended up increasing listings by 10%, closings by 8.5%, average sales price by 21.1% and ended the year surpassing $8 Billion in total closed volume.

Looking ahead at 2022, the economic news continues to be positive: interest rates, net new job formations, migration patterns all good for the Pacific Northwest. The attitudes and moods of our business leaders is positive and upbeat.

There are some concerns for 2022. The media recent focus on recent “inflationary” trends, the announced easing of mortgage-backed securities being purchased by the Federal Reserve’s lead one to be aware that home mortgage interest rates are very low today and might slightly increase in 2022. And we’re slightly concerned about a report from NAR that the percentage of first-time home buyers was below 30% in November.

But we believe the positive economic news is significantly stronger and we remain bullish on 2022 and early 2023. Yes, inventory will be a continuing challenge and yes, home prices will continue to increase as the competition for inventory continues - but neither as concerning as 2021.”

2021 ANNUAL SOUTH SOUND AREA MARKET REPORT

3

2021 ANNUAL MARKET REPORT

LANCE GOODWIN principal managing broker FOR kent station “As we review the 2021 real estate market, we reflect on an astounding year of increases in price and reduction of key statistics that reflect a very strong seller’s market. The average sale price for the South King County and Pierce County areas was $535,000. Up from $450,000 in 2020, that’s an overall price increase of 18.9%. Even with the shortage of inventory, there was a 12.7% increase in the number of homes that sold. Further, those homes sold for 104% over list price. The low number of days on market, a key statistic of a seller’s market, saw houses selling in 13 days. To further illustrate how quickly homes are selling, in 2020 the average days on market was 22 days. That’s an amazing 40.9% decrease. Also, when taken into consideration that many sellers wait several days prior to reviewing offers, homes are really selling in less than a week. While at the end of year the total inventory for these areas was only down 6.1%, many areas experienced much more significant decreases in inventory.

Because many homeowners choose Kent as a central King County location, Kent is a good gauge of the South King County market. At year’s end, inventory plummeted with 21.1% less homes for sale. As a result, prices increased by 17.6% and the average sale price was $600,000, up from $510,000. While both South King and Pierce County areas saw similar market occurrences, year-end inventory may show some relief for buyers.

Overall, in Puyallup, prices were up and days on the market were down. However, it is notable that there was 36.1% more inventory to end the year, than at the end of 2020. It’s unlikely that this statistic is a harbinger for things to come. Rather, it is a sign that the further south you go, that more opportunities may exist for buyers.

Home is more important than ever, and the residents of South King and Pierce County want to own homes. If you are looking to buy or sell, the current market provides opportunity.”

4 2021 ANNUAL 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

AVERAGE DOM

S. King & Pierce Area

$535K

13

Auburn

$535K

11

Burien & Normandy Park

16

$600K

Des Moines

11

$550K

Federal Way

9

$560K

Gig Harbor & Key Peninsula

16

$675K

Kent

$600K

12

Lake Tapps & Bonney Lake

$600K

15

$100K

$200K

$300K

$400K

$500K

$600K

$700K

$800K

NUMBER OF SALES CLOSED 2500 2000

16,863 | TOTAL SALES CLOSED

1500

(TOTAL SOUTH SOUND AREA)

1000 500

1593

573

1298

1093

2108

1070

965

0

Auburn

Burien & Normandy Park

Des Moines

Federal Way

INVENTORY IN UNITS / 12.31.21

Gig Harbor & Key Peninsula

Kent

TOTAL SOUTH SOUND INVENTORY / 416

Lake Tapps & Bonney Lake -6.1%

20

21

12

18

30

30

67

-20.0%

-67.7%

-36.8%

+20.0%

-25.0%

-21.1%

+6.3%

Burien & Normandy Park

Des Moines

Federal Way

Kent

Lake Tapps & Bonney Lake

3500 3000

Auburn

2500 2000 1500

Gig Harbor & Key Peninsula

2021 ANNUAL SOUTH SOUND AREA MARKET REPORT

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SOUTH SOUND

SINGLE FAMILY (SF), CONDO, WATERFRONT & LUXURY

OLYMPIA | PUYALLUP | TACOMA | UNIVERSITY PLACE, LAKEWOOD & TILLICUM 2500 MEDIAN SOLD PRICE

AVERAGE DOM 11

$486K

Olympia 2000 Puyallup 1500

12

$515K

Tacoma 1000

11

$430K

University Place,

500 Lakewood &

$525K

14

Tillicum 0 Condos

$315K

16

Waterfront (SF Only)

$877K

23

Luxury ($2+M | SF+C)

$1.28M $300K

$600K

$900K

$1.2M

29

$1.5M

NUMBER OF SALES CLOSED 3500

16,863 | TOTAL SALES CLOSED

3000

2500

(TOTAL SOUTH SOUND AREA)

3325

2000

2371

1500

2315

1000 500

1314

1153

678

406

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%

37

83

56

42

59

25

70

+48.0%

+36.1%

+9.8%

+2.4%

-52.0%

-21.9%

-10.3%

Olympia

Puyallup

Tacoma

University Place, Lakewood & Tillicum

6 2021 ANNUAL SOUTH SOUND AREA MARKET REPORT

Condos

Waterfront (SF Only)

Luxury ($2+M | SF+C)

South sound area TOTAL SOUTH SOUND AREA

2021

2020

CHANGE

TOTAL HOMES SOLD

16,863

14,960

+12.7%

MEDIAN SOLD PRICE

$535K

$450K

+18.9%

13

22

-40.9%

104%

101%

+3.0%

2021

2020

CHANGE

TOTAL HOMES SOLD

2,315

2,022

+14.5%

MEDIAN SOLD PRICE

$315K

$273K

+15.4%

16

25

-36.0%

102%

99%

+3.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$535K

MEDIAN SOLD PRICE UP +18.9% from 2020

CONDOS

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$315K

MEDIAN SOLD PRICE UP +15.4% from 2020

2021 ANNUAL SOUTH SOUND AREA MARKET REPORT

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South sound area WATERFRONT

2021

2020

CHANGE

TOTAL HOMES SOLD

406

400

+1.5%

MEDIAN SOLD PRICE

$877K

$850K

+3.2%

23

52

-55.8%

100%

95%

+5.3%

2021

2020

CHANGE

TOTAL HOMES SOLD

678

336

+101.8%

MEDIAN SOLD PRICE

$1.28M

$1.25M

+2.4%

29

54

-46.3%

101%

95%

+6.3%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$877K

MEDIAN SOLD PRICE UP +3.2% from 2020

LUXURY

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

8 2021 ANNUAL SOUTH SOUND AREA MARKET REPORT

$1.28M

MEDIAN SOLD PRICE UP +2.4%% from 2020

AUBURN

2021

2020

CHANGE

TOTAL HOMES SOLD

1,093

956

+14.3%

MEDIAN SOLD PRICE

$535K

$459K

+16.6%

11

19

-42.1%

104%

101%

+3.0%

2021

2020

CHANGE

TOTAL HOMES SOLD

1,298

1,199

+8.3%

MEDIAN SOLD PRICE

$600K

$525K

+14.3%

16

26

-38.5%

104%

99%

+5.1%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$535K

MEDIAN SOLD PRICE UP +16.6% from 2020

BURIEN & NORMANY PARK

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$600K MEDIAN SOLD PRICE UP +14.3% from 2020

2021 ANNUAL SOUTH SOUND AREA MARKET REPORT

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South sound area DES MOINES

2021

2020

CHANGE

TOTAL HOMES SOLD

573

650

-11.8%

MEDIAN SOLD PRICE

$550K

$480K

+14.6%

11

24

-54.2%

104%

100%

+4.0%

2021

2020

CHANGE

TOTAL HOMES SOLD

965

855

+12.9%

MEDIAN SOLD PRICE

$560K

$455K

+23.1%

9

16

-43.8%

105%

101%

+4.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$550K MEDIAN SOLD PRICE UP +14.6% from 2020

FEDERAL WAY

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

10 2021 ANNUAL SOUTH SOUND AREA MARKET REPORT

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

GIG HARBOR & KEY PENINSULA

2021

2020

CHANGE

TOTAL HOMES SOLD

1,070

1,023

+4.6%

MEDIAN SOLD PRICE

$675K

$595K

+13.4%

16

42

-61.9%

102%

98%

+4.1%

2021

2020

CHANGE

TOTAL HOMES SOLD

1,593

1,253

+27.1%

MEDIAN SOLD PRICE

$600K

$510K

+17.6%

12

20

-40.0%

105%

101%

+4.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$675K

MEDIAN SOLD PRICE UP +13.4% from 2020

KENT

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$600K MEDIAN SOLD PRICE UP +17.6% from 2020

2021 ANNUAL SOUTH SOUND AREA MARKET REPORT 11

South sound area LAKE TAPPS & BONNEY LAKE

2021

2020

CHANGE

TOTAL HOMES SOLD

2,108

1,806

+16.7%

MEDIAN SOLD PRICE

$600K

$500K

+20.0%

15

30

-50.0%

103%

101%

+2.0%

2021

2020

CHANGE

TOTAL HOMES SOLD

1,153

980

+17.7%

MEDIAN SOLD PRICE

$486K

$400K

+21.5%

11

18

+38.9%

103%

100%

+3.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$600K MEDIAN SOLD PRICE UP +20.0% from 2020

OLYMPIA

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

12 2021 ANNUAL SOUTH SOUND AREA MARKET REPORT

$486K

MEDIAN SOLD PRICE UP +21.5% from 2020

PUYALLUP

2021

2020

CHANGE

TOTAL HOMES SOLD

2,371

2,220

+6.8%

MEDIAN SOLD PRICE

$515K

$434K

+18.7%

12

22

-45.5%

103%

101%

+2.0%

2021

2020

CHANGE

TOTAL HOMES SOLD

3,325

2,860

+16.3%

MEDIAN SOLD PRICE

$430K

$359K

+19.8%

11

15

-26.7%

104%

102%

+2.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$515K

MEDIAN SOLD PRICE UP +18.7% from 2020

TACOMA

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

$430K MEDIAN SOLD PRICE UP +19.8% from 2020

2021 ANNUAL SOUTH SOUND AREA MARKET REPORT 13

South sound area UNIVERSITY PLACE, LAKEWOOD & TILLICUM

2021

2020

CHANGE

TOTAL HOMES SOLD

1,314

1,158

+13.5%

MEDIAN SOLD PRICE

$537K

$440K

+19.3%

14

20

-30.0%

102%

100%

+2.0%

AVERAGE DAYS ON MARKET SOLD/LIST PRICE%

14 2021 ANNUAL SOUTH SOUND AREA MARKET REPORT

$525K

MEDIAN SOLD PRICE UP +19.3% from 2020

JENNIFER ANDERSON REALTOR® | Manager in Development Coldwell Banker Bain | TACOMA 3633 Market Place W, Suite 9 | Tacoma, WA 98466 Cell: (253) 970.7839 Office: (253) 752-7777 Jennanderson.com | homes@jennanderson.com

*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.