Q4 Luxury Market Trends 2021

LUXURY MARKET TRENDS

THE NEW YEAR IS HERE! The year 2021 was another fantastic year for luxury real estate, and in many ideas the number of luxury transactions broke records! The market will continue moving forward in a positive direction in 2022.

The luxury market has taken off over the last two years and will continue to be a strong segment of the local markets we serve at John L. Scott Real Estate. This is due to solid job growth near the city centers, the wealth effect and historically low interest rates.

This winter, the luxury market was more intense than usual due to strong buyer demand. At the tail end of the first quarter in March, the prime luxury market season will begin and run through September.

We hope you’ll find the market information and luxury insights in this report helpful as you look to buy or sell your next home!

J. Lennox Scott Chairman and CEO John L. Scott Real Estate

EXCEPTIONAL HOMES

BY JOHN L. SCOT T Exceptional Homes is John L. Scott’s luxury real estate brand. Together with our luxury broker associates, our global partners at Luxury Portfolio International, and our support staff, we strive to provide concierge-level service by putting clients first.

We can ensure you that we are here for you and your family. The real estate market is fast-paced and ever changing, but what hasn’t changed, is our commitment to exceed your expectations when you are ready to buy or sell your home.

ON THE COVER: SOLD | JOHNLSCOTT.COM/69034 ON THE RIGHT: OFFERED AT $2,500,000 | JOHNLSCOTT.COM/30796

Luxury

L I V E YO U R

WE ARE GLOBAL John L. Scott is a founding member of the international organization Leading Real Estate Companies of the World®.

Founded in 1931, JLS operates over 100 offices with over 3,000 agents throughout WA, OR, ID & CA

John L. Scott’s luxury brand, providing our agents with tools and data to help each and every client live their luxury

A global community of over 565 real estate companies awarded membership based on rigorous standards for service and performance

The luxury division of LeadingRE & the largest global network of the most powerful, independent luxury firms

BY T H E N U M B E R S

4,600

Member Firms

550

Total Inventory

$58

BILLION

80%

of applicants to this network are turned down

Offices Worldwide

MORE U.S. HOME SALES VOLUME

THAN ANY OTHER REAL ESTATE NETWORK, FRANCHISE OR BROKERAGE BRAND. $296 BILLION IN U.S. HOME SALES VOLUME.

Average Property

Associates Worldwide

6

130,000

Continents with Member Companies

$2.6

MILLION

JOHN L. SCOT T LUXURY SPECIALISTS

SCHOLARS OF THE MARKET

Curious about luxury trends in your neighborhood? See what some of our real estate specialists had to say about the luxury market in their area.

THE STEWART GROUP Gig Harbor

With a decrease in new listing inventory, due to the winter season, the backlog of buyers remains significant.

The Gig Harbor Luxury market continues to experience multiple offers significantly over list price with limited contingencies.

Historically, more listings appear on the market in the spring, however with the volume of buyers who weren’t able to secure a property in 2021 it will continue to keep the Luxury market competitive for the foreseeable future.

AMY KANE Lake Oswego

Demographics of the Lake Oswego market have changed tremendously this year with the impact of California buyers in the market. We’ve noticed that when children are relocating, many parents are buying a smaller second home to be closer to their children. We’re also seeing more families building large primary residences so they have a safe and warm place to shelter together.

Considering the strong buyer demand and our lack of inventory, our brokers are seeing pent-up demand, which will carry through 2022. Inventory availability will determine whether we see the same number of units sold in the higher end, and prices will continue to rise unless something major happens to ease this backlog of buyers.

2021 Q4 LU X U R Y M A R K E T T R E N D S

K I M BER AN D B RY CE LE E Lake Tapps

Trending homes in Pierce County integrate energy efficiency & SMART home technologies which align with home buyer’s desired lifestyle.

It is imperative in our developing luxury market to utilize technology & resources when marketing our properties (staging, digital reach & interpersonal networking) in this current hybrid real estate model.

These trends drive our market in Pierce County, balancing the demand between buyers & sellers.

JIM DI E R S T Seattle Northeast

JEROME SLOBOJAN Redmond, WA

Q4 stayed stable for our office.

The luxury market moved well for many of our agents who had several offers on some of their higher-priced listings. When it comes to starts in luxury homes being built, there is a shortage of skilled workers that is threatening the new-home growth. The builders and contractors are having difficulty filling positions, or they are losing employees to other construction firms.

The younger workers and apprentices are ever more difficult to attract to construction along with the supply chain issues. I can see a large shortage of new starts next year.

The luxury market on the Eastside showed extreme inventory shortages and multiple offers on homes that went mutual well above listing price with contingencies still being waived. The luxury market in 2022 will include fading demand in the suburbs and higher prices in less denser areas, as well as a rebound in urban centers.

Homes that are priced too high in the beginning will have more frustration selling their home than ones that are priced to attract competitive home buyers.

PUGET SOUND

2021 Q4 LU X U R Y M A R K E T T R E N D S

FOURTH QUARTER

HIGHLIGHTS

P E N D I N G | J O H N L S C OT T. C O M /16305

The luxury real estate market in Seattle, West Bellevue and on the Eastside continued its torrid pace, remaining strong throughout the fourth quarter of 2021. Local markets have limited unsold inventory due to seasonality and incredibly strong buyer demand.

Seattle’s luxury market saw predominantly extreme frenzy Sales Activity Intensity™ in the last quarter of 2021. The strongest luxury sales activity occurred in the $1 to $3 million price range.

S E AT T L E Q4 2021

Q4 2020

% Change

Number of Sales

895

757

18.2%

Total Dollar Volume

$1,445,215,635

$1,150,708,850

25.6%

Average Sales Price

$1,614,766

$1,520,091

6.2%

Median Sales Price

$1,320,000

$1,310,000

0.8%

Average Days on Market

43

54

-20.3%

Sold / List Price %

104.7%

99.8%

4.9%

Average Price per SQFT

$596

$516

15.5%

Quarter-end inventory

72

190

-62.1%

The data is for single family residences over $1M in MLS areas 140, 380, 390, 700, 710. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

S O L D | J O H N L S C OT T. C O M / 1 6 1 7 1

WEST BELLEVUE Q4 2021

Q4 2020

% Change

Number of Sales

86

123

-30.0%

Total Dollar Volume

$360,903,638

$478,093,904

-24.5%

Average Sales Price

$4,196,554

$3,886,942

7.9%

Median Sales Price

$3,694,000

$2,700,000

36.8%

Average Days on Market

60

61

-1.6%

Sold / List Price %

102.8%

98.4%

4.4%

Average Price per SQFT

$1,119

$985

13.6%

Quarter-end inventory

7

25

-72.0%

In West Bellevue, unsold luxury inventory was scarce in the fourth quarter.

The data is for single family residences over $1M in MLS area 520. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and the Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

2021 Q4 LU X U R Y M A R K E T T R E N D S

S O L D | J O H N L S C OT T. C O M /20000

MERCER ISLAND Q4 2021

Q4 2020

% Change

Number of Sales

88

88

N/A

Total Dollar Volume

$223,869,570

$230,186,500

-2.7%

Average Sales Price

$2,543,972

$2,615,756

-2.7%

Median Sales Price

$2,190,000

$1,977,500

10.7%

Average Days on Market

42

58

-27.5%

Sold / List Price %

105.4%

100.8%

4.5%

Average Price per SQFT

$747

$740

0.9%

Quarter-end inventory

2

11

-81.8%

Mercer Island luxury home buyers also faced incredibly low levels of unsold inventory as 2022 began. This scarcity will be in place until the luxury season really kicks off in March, April and May of 2022.

The data is for single family residences over $1M in MLS area 510. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and the Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

S O L D | J O H N L S C OT T. C O M / 4 4 6 4 1

EASTSIDE Q4 2020

% Change

1,422

1,253

13.4%

Total Dollar Volume

$2,804,517,159

$2,314,525,178

21.2%

Average Sales Price

$1,972,234

$1,847,187

6.8%

Median Sales Price

$1,645,000

$1,420,000

15.8%

Average Days on Market

56

68

-17.6%

Sold / List Price %

108.0%

101.0%

7.0%

Average Price per SQFT

$649

$537

20.9%

Quarter-end inventory

47

158

-70.3%

DAYS ON MARKE T

Number of Sales

17.6%

NUMBER OF SALES

Q4 2021

13.4%

The data is for single family residences over $1M in MLS areas 500, 530, 540, 550, 560, 600. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and the Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

2021 Q4 LU X U R Y M A R K E T T R E N D S

S O L D | J O H N L S C OT T. C O M /3 3669

KING COUNTY CONDO Q4 2020

% Change

174

207

-15.9%

Total Dollar Volume

$269,459,723

$368,579,814

-26.9%

Average Sales Price

$1,548,619

$1,780,579

-13.0%

Median Sales Price

$1,349,500

$1,550,000

-12.9%

Average Days on Market

74

47

57.4%

Sold / List Price %

101.0%

99.6%

1.4%

Average Price per SQFT

$824

$979

-15.8%

Quarter-end inventory

58

152

-61.8%

DAYS ON MARKE T

PRICE PER SQUARE FOOT

Number of Sales

Q4 2021

57.4%

15.8%

The data is for condominiums over $1M in King County. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and the Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

P E N D I N G | J O H N L S C OT T. C O M / 53 0 4 1

S O U T H K I N G CO U N T Y Q4 2021

Q4 2020

% Change

Number of Sales

660

274

140.9%

Total Dollar Volume

$624,114,595

$261,301,555

138.8%

Average Sales Price

$945,628

$953,655

-0.8%

Median Sales Price

$850,500

$850,000

0.1%

Average Days on Market

21

40

-47.5%

Sold / List Price %

102.7%

100.3%

2.4%

Average Price per SQFT

$328

$288

13.8%

Quarter-end inventory

70

66

6.1%

IN Q4, WE SAW A 140.9% INCREASE IN SALES FOR SOUTH KING COUNT Y

The data is for single family residences over $750k in MLS areas 100, 110, 120, 130, 140, 300, 310, 320, 330, 340, 350, 360, 380, 390, 700, 710. Some John L. Scott offices are independently owned and operated. All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

2021 Q4 LU X U R Y M A R K E T T R E N D S

P E N D I N G | J O H N L S C OT T. C O M / 55454

PIERCE COUNTY Q4 2021

Q4 2020

% Change

Number of Sales

665

358

85.8%

Total Dollar Volume

$653,298,781

$362,790,435

80.1%

Average Sales Price

$982,404

$1,013,381

-3.1%

Median Sales Price

$860,000

$875,275

-1.7%

Average Days on Market

27

49

-44.9%

Sold / List Price %

101.1%

99.5%

1.5%

Average Price per SQFT

$316

$289

9.6%

Quarter-end inventory

139

122

13.9%

THE AVERAGE DAYS ON MARKET DECREASED BY 44.9% IN Q4 IN PIERCE COUNT Y

The data is for single family residences over $750k in Pierce County. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and the Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

O F F E R E D AT $2,350,000 | J O H N L S C OT T. C O M /36901

KITSAP COUNTY Q4 2021

Q4 2020

% Change

Number of Sales

233

193

20.7%

Total Dollar Volume

$284,438,118

$248,936,364

14.3%

Average Sales Price

$1,220,764

$1,289,826

-5.4%

Median Sales Price

$949,900

$1,045,000

-9.1%

Average Days on Market

27

33

-18.2%

Sold / List Price %

104.9%

100.9%

4.0%

Average Price per SQFT

$431

$422

2.2%

Quarter-end inventory

49

46

6.5%

OVERALL, THE AVERAGE PRICE PER SQUARE FOOT INCREASED 2.2% IN KITSAP COUNT Y

The data is for single family residences over $750k in Kitsap County. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

2021 Q4 LU X U R Y M A R K E T T R E N D S

O F F E R E D AT $3,233,000 | J O H N L S C OT T. C O M /31955

BAINBRIDGE ISLAND Q4 2021

Q4 2020

% Change

Number of Sales

59

78

-24.3%

Total Dollar Volume

$113,621,368

$136,166,112

-16.6%

Average Sales Price

$1,925,786

$1,745,719

10.3%

Median Sales Price

$1,800,000

$1,502,500

19.8%

Average Days on Market

35

60

-41.6%

Sold / List Price %

108.0%

101.3%

6.6%

Average Price per SQFT

$661

$532

24.3%

Quarter-end inventory

7

13

-46.2%

Bainbridge Island is a top luxury destination in the Pacific Northwest due to its enchanting island lifestyle and proximity to Seattle. Residents also enjoy the scenery and opportunity to build community locally.

The trend of low inventory on Bainbridge Island continued into the fourth quarter of 2021. Buyers locally will likely face scarce luxury inventory until the luxury season really kicks off in 2022, during the months of March, April and May.

The data is for single family residences over $1M in MLS area 170. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and the Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

S O L D | J O H N L S C OT T. C O M / 65 5 5 1

SNOHOMISH COUNTY Q4 2021

Q4 2020

% Change

Number of Sales

1,338

811

65.0%

Total Dollar Volume

$1,376,384,380

$782,684,473

75.9%

Average Sales Price

$1,028,688

$965,086

6.6%

Median Sales Price

$933,657

$879,000

6.2%

Average Days on Market

14

27

-48.1%

Sold / List Price %

104.7%

101.2%

3.4%

Average Price per SQFT

$389

$314

24.1%

Quarter-end inventory

89

113

-21.2%

Q4 SAW A 48.1% DECREASE IN DAYS ON MARKET IN SNOHOMISH COUNT Y

The data is for single family residences over $750k in Snohomish County. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

2021 Q4 LU X U R Y M A R K E T T R E N D S

O F F E R E D AT $998,888 | J O H N L S C OT T. C O M / 65506

ISLAND COUNTY Q4 2021

Q4 2020

% Change

Number of Sales

99

81

22.2%

Total Dollar Volume

$102,476,100

$96,300,277

6.4%

Average Sales Price

$1,035,112

$1,188,892

-12.9%

Median Sales Price

$918,000

$1,000,000

-8.2%

Average Days on Market

22

45

-51.1%

Sold / List Price %

102.7%

99.4%

3.3%

Average Price per SQFT

$388

$399

-2.7%

Quarter-end inventory

20

29

-31.0%

OVERALL, THE NUMBER OF SALES INCREASED BY 22.2% IN ISLAND COUNT Y

The data is for single family residences over $750k in Island County. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and the Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

LUXURY WATERFRONT LAKE WASHINGTON Q4 2021

Q4 2020

% Change

Number of Sales

41

76

-46.1%

Total Dollar Volume

$197,236,800

$366,228,299

-46.1%

Average Sales Price

$4,810,654

$4,818,793

-0.2%

Median Sales Price

$2,600,000

$2,691,150

-3.4%

Average Days on Market

29

39

-25.6%

Sold / List Price %

99.1%

97.6%

1.5%

Average Price per SQFT

$1,253

$1,225

2.3%

Quarter-end inventory

3

22

-86.4%

Q4 2021

Q4 2020

LAKE SAMMAMISH % Change

Number of Sales

34

36

-5.6%

Total Dollar Volume

$94,240,900

$76,886,637

22.6%

Average Sales Price

$2,771,791

$2,135,740

29.8%

Median Sales Price

$1,850,000

$1,550,000

19.4%

Average Days on Market

12

76

-84.2%

Sold / List Price %

107.4%

98.6%

8.9%

Average Price per SQFT

$791

$609

29.9%

Quarter-end inventory

4

13

-69.2%

KING COUNTY Q4 2021

Q4 2020

% Change

Number of Sales

170

199

-14.6%

Total Dollar Volume

$493,395,903

$615,054,074

-19.8%

Average Sales Price

$2,902,329

$3,090,724

-6.1%

Median Sales Price

$1,780,000

$1,820,000

-2.2%

Average Days on Market

19

45

-57.8%

Sold / List Price %

102.3%

97.9%

4.6%

Average Price per SQFT

$857

$844

1.5%

Quarter-end inventory

18

68

-73.5%

The data is for waterfront single family residences and condos over $1M. Lake Washington is MLS areas 510, 520, 380, 390, 710. Lake Sammamish is MLS areas 530, 540.

Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and the Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

2021 Q4 LU X U R Y M A R K E T T R E N D S

S O L D | J O H N L S C OT T. C O M /54079

FEATURED LUXURY LISTINGS

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Enjoy the gourmet kitchen featuring high-end appliances, granite counters, a built-in China cabinet, and an expansive island with seating for six. Retreat to the luxurious primary suite with bay views, plush carpet, access to the deck, and a spa-inspired bath with stone flooring, dual vanity, and an oversized shower. Escape to the lower level with a family room, wine cellar, fitness room, and two more bedrooms. Entertain on the back deck with a fully loaded outdoor kitchen featuring a wood-burning pizza oven and rock fireplace.

GRACE HUDTLOFF 253-581-1100

graceh@johnlscott.com

2021 Q4 LU X U R Y M A R K E T T R E N D S

COLBERT, WA | $3,000,000 | JOHNLSCOTT.COM/68302 17410 N LIT TLE SPOKANE DR, COLBERT, WA 99005 Tucked away on 14.5 private acres with 1,750 feet of Little Spokane River frontage, this beautiful, custom craftsman home with a full guest house is a once-in-a-lifetime opportunity. New from the ground up, this thoughtfully designed home is a wilderness escape, yet just a few minutes to downtown Spokane. Using wood plank flooring, iron forged materials, massive beams, and custom cabinetry, each room takes full advantage of the sweeping river views. 25-foot ceilings complement the open great room anchored around the stunning, custom two-story stone fireplace. Cooking is a treat in the gourmet kitchen stocked with a Wolf 6-burner range, high-end appliances, and quartz counters. Retreat to the primary suite lined with windows for abundant natural light and tranquil scenery, a spacious walk-in closet, and an en-suite bath with a deluxe soaking tub overlooking the river. The 1,000 square foot guest house shares the same craftsmanship and fine features and has its very own river view deck. Summers are spent fishing off the two bridges or jumping in the river to cool off. With access to both sides of the river, you can explore the land where wildlife has found its sanctuary. Complete with a 1,200 square foot heated shop, this very special property is where a lifetime of memories will be made.

SUE WOLFORD 509-999-8629 suewolford@johnlscott.com

EASTERN WA S H I N G TO N & IDAHO

2021 Q4 LU X U R Y M A R K E T T R E N D S

O F F E R E D AT $4,500,000 | J O H N L S C OT T. C O M /18730

COEUR D’ALENE, IDAHO Q4 2021

Q4 2020

% Change

Number of Sales

255

179

42.5%

Total Dollar Volume

$322,906,071

$261,259,944

23.6%

Average Sales Price

$1,266,298

$1,459,553

-13.2%

Median Sales Price

$975,000

$1,030,000

-5.3%

Average Days on Market

40

62

-35.5%

Sold / List Price %

97.5%

97.4%

0.1%

Average Price per SQFT

$388

$394

-1.7%

Quarter-end inventory

103

76

35.5%

SALES IN COEUR D’ALENE INCREASED 42.5% COMPARED WITH THE SAME PERIOD IN 2020

The data is for single family residences over $750k in Kootenai County. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

2021 Q4 LU X U R Y M A R K E T T R E N D S

P E N D I N G | J O H N L S C OT T. C O M /68008

SPOKANE COUNTY Q4 2021

Q4 2020

% Change

Number of Sales

169

92

83.7%

Total Dollar Volume

$175,774,386

$88,288,045

99.1%

Average Sales Price

$1,040,085

$959,653

8.4%

Median Sales Price

$845,000

$829,500

1.9%

Average Days on Market

32

42

-23.8%

Sold / List Price %

98.2%

98.3%

-0.2%

Average Price per SQFT

$241

$211

14.3%

Quarter-end inventory

68

52

30.8%

THE NUMBER OF SALES IN SPOKANE COUNT Y INCREASED 83.7% COMPARED WITH THE SAME PERIOD IN 2020

The data is for single family residences over $750k in Spokane County. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

OREGON & SOUTHWEST WA S H I N G TO N

2021 Q4 LU X U R Y M A R K E T T R E N D S

FOURTH QUARTER

HIGHLIGHTS

OFFERED AT $3,250,000 | JOHNLSCOTT.COM/45691

The year 2021 was a banner year for the Portland Metro luxury real estate market, with luxury sales breaking records. The fourth quarter also brought hot sales activity, particularly in the $1 to $2 million price range, despite a shortage of inventory. However, luxury sales last quarter were selective above $2 million.

PORTLAND METRO Q4 2021

Q4 2020

% Change

Number of Sales

178

128

39.0%

Total Dollar Volume

$246,354,809

$205,466,247

19.9%

Average Sales Price

$1,384,016

$1,605,205

-13.8%

Median Sales Price

$1,252,500

$1,232,500

1.6%

Average Days on Market

63

80

-21.2%

Sold / List Price %

100.4%

98.5%

1.9%

Average Price per SQFT

$359

$374

-3.9%

Quarter-end inventory

60

103

-23.6%

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Lake Oswego and West Linn reached an all-time luxury inventory low in the fourth quarter of 2021.

Despite the inventory scarcity, the local luxury market saw phenomenal activity in the $750,000 to $2 million price range. Luxury sales activity was healthy above $2 million.

Buyers in Portland, Lake Oswego and West Linn will be waiting patiently for each listing until the luxury market kicks into gear beginning in March 2022.

LAKE OSWEGO Q4 2021

Q4 2020

% Change

Number of Sales

125

104

20.1%

Total Dollar Volume

$214,504,419

$165,090,232

29.9%

Average Sales Price

$1,716,035

$1,587,406

8.1%

Median Sales Price

$1,350,000

$1,444,000

-6.5%

Average Days on Market

74

103

-28.1%

Sold / List Price %

99.0%

96.7%

2.4%

Average Price per SQFT

$422

$378

11.7%

Quarter-end inventory

40

60

-29.0%

The data is for single family residences over $1M in Clackamas, Multnomah, Washington and Columbia Counties. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

BEND Q4 2021

Q4 2020

% Change

Number of Sales

401

293

36.9%

Total Dollar Volume

$466,937,253

$364,458,524

28.1%

Average Sales Price

$1,164,432

$1,239,655

-6.1%

Median Sales Price

$975,900

$975,000

0.1%

Average Days on Market

42

53

-20.8%

Sold / List Price %

98.7%

98.3%

0.4%

Average Price per SQFT

$442

$394

12.1%

Quarter-end inventory

128

95

34.7%

IN Q4, THE NUMBER OF SALES INCREASED BY 36.9% IN BEND

The data is for single family residences over $900k in Bend Oregon. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and the Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

2021 Q4 LU X U R Y M A R K E T T R E N D S P E N D I N G | J O H N L S C OT T. C O M / 4 5 9 3 5

In the fourth quarter of 2021, we experienced both strong luxury sales and a seasonal occurrence during which some sellers in Bend opted to take their homes off the market to reposition them in spring. This phenomenon is known as the winter clean-up, and this year it contributed to extremely low unsold inventory levels locally. However, sales activity remained strong due to high buyer demand.

Due to the winter clean-up, the Bend luxury market is starting off the year with low levels of available inventory. Once the luxury market kicks off in March, April and May of this year, it will be “go time” for buyers looking to buy a slice of Central Oregon living.

S O L D | J O H N L S C OT T. C O M / 5 7 5 5 5

JACKSON COUNTY Q4 2021

Q4 2020

% Change

Number of Sales

87

72

20.8%

Total Dollar Volume

$87,889,650

$80,438,388

9.3%

Average Sales Price

$1,010,226

$1,117,200

-9.6%

Median Sales Price

$859,000

$910,000

-5.6%

Average Days on Market

53

112

-52.7%

Sold / List Price %

98.1%

96.9%

1.2%

Average Price per SQFT

$348

$288

20.9%

Quarter-end inventory

116

85

36.5%

THE AVERAGE DAYS ON MARKET DECREASED BY 52.7% IN Q4 IN JACKSON COUNT Y

The data is for single family residences over $900k in Jackson County. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

2021 Q4 LU X U R Y M A R K E T T R E N D S

S O L D | J O H N L S C OT T. C O M /68632

C L A R K CO U N T Y Q4 2021

Q4 2020

% Change

Number of Sales

392

208

88.5%

Total Dollar Volume

$406,463,581

$210,491,286

93.1%

Average Sales Price

$1,036,897

$1,007,135

3.0%

Median Sales Price

$909,755

$885,777

2.7%

Average Days on Market

39

57

-31.6%

Sold / List Price %

98.8%

98.1%

0.7%

Average Price per SQFT

$297

$250

19.0%

Quarter-end inventory

123

110

11.8%

IN Q4 SALES INCREASED 88.5% IN CLARK COUNT Y COMPARED WITH THE SAME PERIOD LAST YEAR

The data is for single family residences over $750k in Clark County. Some John L. Scott offices are independently owned and operated.

All reports presented are based on data supplied by the NWMLS, RMLS, Spokane MLS, and the Central Oregon MLS. Neither the Associations nor the MLS guarantees or is in anyway responsible for its accuracy. Data maintained by the Associations or the MLS may not reflect all real estate activities in the market. Information deemed reliable but not guaranteed.

REAL ESTATE OUTLOOK 2022 Demand for homes will continue to outpace supply in yet another pandemic-driven year The longer we work from home and maintain high productivity rates, the harder it becomes for employers to justify 40 hours in a sterile office setting and long commutes other than for culture and collaboration

By Mickey ALAM KHAN

E

xpect to see demand continuing to outstrip supply in the luxury end of the real estate market worldwide, extending a trend from mid-2019 as the COVID-19 pandemic kicked off one of the most spectacular bull runs in the prime residential business worldwide.

What this means is that real estate brokers and agents will have to keep at it to win listings in a highly competitive environment.

More creative approaches, better marketing outreach, smarter use of technology and an emphasis on the sphere of influence will help in listings acquisition as potential home-sellers weigh options between different agents, brokerages, platforms and networks.

Sand to slopes Markets with beaches, mountains, lakes, ski slopes and oceans will continue to perform well. But some may become a victim of their own success, with resort and second-home locations turning into co-primary or main residences.

Flexible working conditions have led to several affluent consumers making warmer, low-tax, secondhome states such as Florida and Texas their primary residence, thus locking up real estate for a far longer period of time.

Beyond North America, affluent consumers – equally seeking safety from the pandemic and not tied too deeply to offices – will continue to seek second or co-primary homes in less densely populated towns close to major urban centers.

Warmer-climate countries such as Spain, Italy and Greece will retain their allure, as will a Middle Eastern financial hub such as Dubai that is fast liberalizing, with citizenship available, a large expatriate base and a newly adopted Western work week and Saturday-Sunday off.

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That said, expect inventory of high-end homes to be tight across key markets. New developments cannot keep pace with the demand and, in any case, take up to, or more than, three years to turn from dirt to move-in residences.

Another key driver for continued demand for homes new and old is demographic.

Millennials – consumers born between 1981 and 1996, per the Pew Research Center – are now hitting their key buying stride. On the other hand, the oldest baby boomer turned 75 in 2021, with this group now right-sizing to smaller residences and warmer climes.

Liquid diet What may help with the listings crunch is the rise in interest rates, which in turn will raise the cost of borrowing and refinancing. The U.S. Fed will raise interest rates at least three times in 2022 to curb inflation, which reached almost seven percent in 2021.

With repeated interest-rate increases, property owners may think it opportune to list properties that they held on to during the height of the pandemic.

Another measure to curb growing inflation is the U.S. Fed’s decision to pull back on buying bonds from the market, amounting to $120 billion a month throughout 2021. That injection of liquidity in the market may have worked to keep the U.S. economy humming along during the pandemic, but now it has led to fears that inflation could derail any progress made and hurt consumers.

Long story short, homeowners and investors may think the peak is past and start listing their properties on the market. So that may bring back some balance in the demand-supply situation.

As a corollary, expect the time on market to also

2021 YEAR IN RE VIEW

2021 Q4 LU X U R Y M A R K E T T R E N D S

increase for luxury properties in key locations as housing inventory grows if the Fed taper and higher interest rates take effect as intended. Expect asking prices to hold, however.

impact cross-border travel and transactions, as well as the ability of several sectors such as hospitality, travel, entertainment and retail to return to some semblance of normalcy.

Vicissitudes in international trade will continue to have a domino effect on luxury real estate.

In 2022, we expect the home to continue to be at the center of the consumer’s life. Flexible working conditions are here to stay for the next three years or so.

We will continue to see a disruption in the global supply chain. Labor shortages at ports, higher costs of shipping containers, lack of ship-movement data from China and generally ballooning prices of materials such as lumber, stone, accessories and fittings will plague the real estate industry at all price points.

Add to those supply chain issues the potential for geopolitical surprises.

Home run Any move from China to invade Taiwan or Russia to send troops into Ukraine may destabilize the financial markets and shut down shipping lanes and air travel if Europe and the United States retaliate with military initiatives and economic sanctions.

The COVID-19 pandemic will continue to cause concern and further lockdowns if the caseload rises dramatically globally. This will obviously again

The longer we work from home and maintain high productivity rates, the harder it becomes for corporations and employers to justify 40 hours in a sterile office setting and long commutes other than for culture and collaboration. So, two to three days per week on a staggered, hot-desking schedule may eventually become our common future.

BOTTOM LINE, barring wars, terrorism and a deadlier turn in the COVID-19 pandemic, the real estate industry, especially the luxury end of it, will chug along in 2022 as long as agents are agile in winning listings in a market low on old and new housing stock.

Affluent consumers, driven by lifestyle and health safety considerations, will still insist on quality space, modern amenities and that old staple of luxury homes – location, location, location.

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2021 YEAR IN RE VIEW | 27

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