2017 Summer Market Review - Luxury

LUXURY MARKET SUMMER 2017 www.vdbrealty.com

Luxury Market Review

LU X U RY M A R K E T R E V I E W

A LOOK AT LUXURY Luxury Real Estate Trends, Q1+Q2 2017 With Western Washington’s economy thriving and local wealth rising, our high-end real estate market is on a roll. In the first half of 2017, we saw exceptionally strong growth and record-setting results in the luxury category. Sales of single family homes priced $2M+ rose dramatically, with a 40% increase in the number of units sold and a 43% increase in total sales volume over the same period last year. Further proof of the luxury segment’s strength: high-end homes sold 10% faster in the first two quarters of this year. Driven by demand from relocating executives and downsizing baby boomers alike, luxury condominium sales saw tremendous growth. The number of condos sold above $1M increased by 42% in Q1/Q2, and the number of condos sold above $2M shot up by 115%. High-end new construction homes proved very attractive to affluent buyers: total sales jumped by 85% in the first two quarters to $238 million. Tides were high in the luxury waterfront market as well: unit sales were up 45% and total sales volume rose by 47%. Please reference the last pages of this report for luxury waterfront statistics.

V D B LU X U RY | C O L DW EL L BA N K ER BA I N B E L L E V U E | MADISON PARK

Our Local Market: Luxury Lives Here Western Washington continues to attract affluent home buyers from around the nation and world. Our economy, schools and amenities draw high-net-worth individuals to the region; our lifestyle, climate and views keep them here. With local companies thriving, the booming jobs sector supports some of the highest wages in the country. As a result, wealth creation in our region is at an all-time high. The luxury real estate market mirrors this growth, with record sales recorded so far this year.

Lifestyle properties are attracting high-net-worth buyers, both locals who are “moving up” and those relocating from other markets. Record numbers of Seattle-area buyers are stretching into the luxury segment, in part due to record-high stock option values. Many non-resident buyers, especially those moving from the Bay Area, New York, Europe and Asia, still find Western Washington home prices relatively affordable. View properties – those overlooking water, mountains or skylines – remain a clear favorite among both sets of buyers.

If you are a prospective home seller inclined to take advantage of the hot market for luxury properties, let us help you prepare, price and position your investment for maximum return. Our Global Luxury brand offers world-class marketing that spotlights your listing to affluent buyers from around the world.

LU X U RY M A R K E T R E V I E W

62

90

47

79

118

168

261

366

T O T A L L U X UR Y SA L E S | YT D 2017 VS. 2 0 1 6

SINGLE FAMILY HOMES $2M+

CONDOMINIUMS $1M+

NEW CONSTRUCTION HOMES $2M+

WATERFRONT HOMES $2M+

40%

42%

68%

45%

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 show that every luxury property category saw dramatic sales growth in the first half of this year. Total sales of single family homes in the $2M+ price category jumped 43%, to over $1B in volume, a first-half record.

Luxury new construction home sales made the largest leap, up 68% in units sold and 85% in total volume. Demand for luxury waterfront homes was also strong in the first two quarters of the year.

$3,572,105

$3,617,700

$2,733,500

$3,010,600

$1,432,400

$1,609,200

$2,874,300

$2,922,500

AV E RA G E L U X UR Y HO M E PR ICE | YT D 2017 VS. 2 0 1 6

SINGLE FAMILY HOMES $2M+

CONDOMINIUMS $1M+

NEW CONSTRUCTION HOMES $2M+

WATERFRONT HOMES $2M+

2%

12%

10%

1%

V D B LU X U RY | C O L DW EL L BA N K ER BA I N B E L L E V U E | MADISON PARK

$221M

$326M

$128M

$238M

$169M

$270M

$750M

$1.07B

T O T AL L U X UR Y S AL E S VO L U M E | YT D 2017 VS. 2 0 1 6

SINGLE FAMILY HOMES $2M+

CONDOMINIUMS $1M+

NEW CONSTRUCTION HOMES $2M+

WATERFRONT HOMES $2M+

43%

60%

85%

47%

Growth in both the quantity and dollar volume of luxury home sales reflected a healthy market for high-end properties in Q1/Q2. Of the 12 communities analyzed in this report, nine saw unit sales increases of at least 20% and sales volume increases of at least 25%. Clyde Hill/West Bellevue led the way with the most luxury properties sold (88) and the highest sales volume ($270.6M). Medina had both the highest average sold price ($3,482,900) and the shortest market time (21 days). The neighborhoods of the Seattle-East area had the highest average sold-to-list price ratio (100.9%).

119 Days

92 Days

65 Days

60 Days

55 Days

58 Days

59 Days

53 Days

AV E RA G E D AY S ON MA R KE T | YT D 2 0 1 7 VS. 2016

SINGLE FAMILY HOMES $2M+

CONDOMINIUMS $1M+

NEW CONSTRUCTION HOMES $2M+

WATERFRONT HOMES $2M+

-10%

6%

-8%

-23%

VDB Luxury : Advantage in the Marketplace Mark von der Burg is highly regarded as one of the most qualified experts in residential real estate in the Pacific Northwest. For more than twenty-eight years, Mark has built his reputation representing Luxury Estates, Urban Homes, and Waterfront Properties. With sales over $110,000,000 in 2016, he is once again in the top 0.5% of agents nationwide, the second leading Realtor in the Northwest, and Coldwell Banker Bain’s #1 Realtor.

Mark von der Burg | Coldwell Banker Global Luxury

®

DIRECTOR

Representing the most prominent estates in the Northwest for over twenty-eight years, Mark is recognized by local and national media as an expert in his field. Mark is well known as a tough negotiator who knows the avenues that will guide your home through the complex appraisal, inspection and lending process. You will want Mark on your side of the negotiating table! He will be your strongest advocate as each piece of the transaction is meticulously monitored to meet your goals. His unwavering standards, integrity, and extensive knowledge have earned him an impressive roster of repeat and referral business.

$100,000,000+ in SALES year after year

Brandon Hancock | Broker Brandon graduated from the University of Washington in 2008 with a degree in Construction Management. After working as a Project Engineer with Mortenson Construction for two years, he became a Real Estate Broker in 2009 and officially joined the VDB Estates team in 2012. Assisting individuals in purchasing/selling real estate is important to Brandon because he recognizes that it is not only a place to call “home”, but it is more than likely one of the largest investments a person will be involved with. Protecting this asset, in what can often be emotional transactions for the client, is the number one priority for Brandon. Being a former resident of Seattle, Kirkland and now residing in Downtown Bellevue, he possesses market knowledge from first-hand experience in the Greater Seattle area. Outside of real estate, Brandon has been a season ticket holder for UW Football since 2004. He enjoys always physically challenging himself with exercise and being very conscientious about living a healthy lifestyle.

V D B LU X U RY | C O L DW EL L BA N K ER BA I N B E L L E V U E | MADISON PARK

E A S T S I DE YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $741.6 MILLION | $512.1 MILLION | 44.8% TOTAL HOMES SOLD 243 | 174 | 39.7% AVG. SALES PRICE $3,051,700 | $2,943,200 | 3.7% AVG. DAYS ON MARKET 50 | 48 | 4.2% SOLD/LIST PRICE % 98.1% | 97.5% | 0.6%

S EATTL E YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $208.1 MILLION | $156.9 MILLION | 32.6% TOTAL HOMES SOLD 79 | 62 | 27.4% AVG. SALES PRICE $2,634,000 | $2,530,800 |4.1% AVG. DAYS ON MARKET 40 | 61 | -34.4% SOLD/LIST PRICE % 99.7% | 99.5% | 0.2%

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

LU X U RY M A R K E T R E V I E W

BELLEVUE: EAST & SOUTH Bridle Trails | Glendale | Lakemont Newport Shores | Somerset | The Summit YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $227.5M | $176.4M | 29.0% TOTAL HOMES SOLD 81 | 61 | 32.8% AVG. SALES PRICE $2,808,400 | $2,891,500 | -2.9% AVG. DAYS ON MARKET 36 | 53 | -32.1% SOLD/LIST PRICE % 98.8% | 98.9% | -0.1%

CLYDE HILL & WEST BELLEVUE Beaux Arts | Downtown Bellevue | Enatai Hunts Point | Vuecrest | Yarrow Point YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $270.6M | $248.3M | 9.0% TOTAL HOMES SOLD 88 | 85 | 3.5% AVG. SALES PRICE $3,074,900 | $2,921,700 | 5.2% AVG. DAYS ON MARKET 39 | 50 | -22.0% SOLD/LIST PRICE % 98.9% | 98.1% | 0.8%

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

V D B LU X U RY | C O L DW EL L BA N K ER BA I N B E L L E V U E | MADISON PARK

ISSAQUAH & SAMMAMISH Aldarra | Beaver Lake | East Lake Sammamish Issaquah Highlands | Pine Lake | Windsor Greens YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $40.1M | $17.6M | 127.8% TOTAL HOMES SOLD 14 | 6 | 133.3% AVG. SALES PRICE $2,864,900 | $2,935,000 | -2.4% AVG. DAYS ON MARKET 80 | 26 | 207.7% SOLD/LIST PRICE % 98.0% | 96.9% | 1.1%

KIRKLAND Carillon Point | Downtown | East of Market Holmes Point | Houghton | West of Market YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $61.2M | $60.2M | 1.6% TOTAL HOMES SOLD 21 | 22 | -4.5% AVG. SALES PRICE $2,912,000 | $2,734,600 | 6.5% AVG. DAYS ON MARKET 40 | 37 | 8.1% SOLD/LIST PRICE % 98.3% | 96.0% | 2.4%

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

LU X U RY M A R K E T R E V I E W

MEDINA YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $83.6M | $49.7M | 68.2% TOTAL HOMES SOLD 24 | 14 | 71.4% AVG. SALES PRICE $3,482,900 | $3,549,700 | -1.9% AVG. DAYS ON MARKET 21 | 11 | 90.9% SOLD/LIST PRICE % 99.5% | 98.7% | 0.8%

MERCER ISLAND YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $167.7M | $71.5M | 134.5% TOTAL HOMES SOLD 53 | 23 | 130.4% AVG. SALES PRICE $3,164,000 | $3,108,900 | 1.8% AVG. DAYS ON MARKET 66 | 71 | -7.0% SOLD/LIST PRICE % 97.7% | 95.1% | 2.7%

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

V D B LU X U RY | C O L DW EL L BA N K ER BA I N B E L L E V U E | MADISON PARK

REDMOND & WOODINVILLE Bear Creek | Blakely Woods | Hollywood Hill Lake of the Woods | Novelty Hill | Union Hill YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $34.7M | $18.5M | 87.2% TOTAL HOMES SOLD 13 | 7 | 85.7% AVG. SALES PRICE $2,665,800 | $2,645,300 | 0.8% AVG. DAYS ON MARKET 60 | 54 | 11.1% SOLD/LIST PRICE % 94.4% | 96.7% | -2.4%

SEATTLE: DOWNTOWN, MAGNOLIA & QUEEN ANNE * Belltown | Lake Union | Magnolia Queen Anne | South Lake Union YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $112.8M | $60.7M | 85.8% TOTAL HOMES SOLD 41 | 24 | 70.8% AVG. SALES PRICE $2,750,000 | $2,528,300 | 8.8% AVG. DAYS ON MARKET 40 | 59 | -32.2% SOLD/LIST PRICE % 98.7% | 100.6% | -1.9% *These figures include sales of both single family homes and condos since Downtown Seattle has no single family homes

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

LU X U RY M A R K E T R E V I E W

SEATTLE: EAST Broadmoor | Capitol Hill | Denny Blaine | Madrona Madison Park | Montlake | Washington Park YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $76.1M | $88.0M | -13.6% TOTAL HOMES SOLD 30 | 34 | -11.8% AVG. SALES PRICE $2,535,400 | $2,589,500 | -2.1% AVG. DAYS ON MARKET 26 | 45 | -42.2% SOLD/LIST PRICE % 100.9% | 99.7% | 1.2%

SEATTLE: NORTHEAST Bryant | Hawthorne Hills | Inverness | Laurelhurst | Ravenna View Ridge | Windermere YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $37.2M | $22.7M | 64.2% TOTAL HOMES SOLD 11 | 9 | 22.2% AVG. SALES PRICE $3,381,200 | $2,517,200 | 34.3% AVG. DAYS ON MARKET 90 | 133 | -32.3% SOLD/LIST PRICE % 95.6% | 96.7% | -1.1%

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

V D B LU X U RY | C O L DW EL L BA N K ER BA I N B E L L E V U E | MADISON PARK

SEATTLE: NORTHWEST Broadview | Green Lake | Innis Arden | North Beach Phinney Ridge | The Highlands | Wallingford YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $18.4M | $2.4M | 675.6% TOTAL HOMES SOLD 8 | 1 | 700.0% AVG. SALES PRICE $2,302,500 | $2,375,000 | -3.1% AVG. DAYS ON MARKET 103 | 11 | 836.4% SOLD/LIST PRICE % 97.0% | 96.9% | 0.1%

SEATTLE: SOUTH & WEST Alki | Beach Drive | Fauntleroy | Leschi North Admiral | Mt. Baker | Seward Park YTD 2017 | YTD 2016 | % CHANGE TOTAL SALES VOLUME $13.6M | $10.5M | 29.2% TOTAL HOMES SOLD 6 | 4 | 50.0% AVG. SALES PRICE $2,269,700 | $2,635,500 | -13.9% AVG. DAYS ON MARKET 53 | 25 | 112.0% SOLD/LIST PRICE % 99.9% | 102.1% | -2.2%

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

LU X U RY M A R K E T R E V I E W

Life at the Water's Edge Owning a Western Washington waterfront home represents the peak of luxury living. Comprising one quarter of all high-end home sales in our region, waterfront is the most glamorous and scrutinized residential market segment. With little inventory to choose from at any given time and with the best-situated homes changing hands infrequently, buyers of waterfront properties face unique challenges. To achieve their ownership goals, they must be more patient than the typical luxury home buyer and also be willing to pay a premium when a coveted property becomes available for purchase.

In the first half of 2017, the market for luxury waterfront properties experienced dramatic growth. The number of homes sold in this category increased by 45% over the same period last year, while total sales reached $325 million, setting a Q1/Q2 record.

Lake Washington led the way with 41 luxury waterfront sales and an average sold price of $4,355,834. There were 30 luxury waterfront sales along the shores of the Puget Sound, up an impressive 150% over the first half of 2016. Lake Sammamish had 11 luxury waterfront sales, up from six recorded in Q1/Q2 last year, with an 80.5% increase in total sales by dollar volume.

The chart to the right details year-to-date market trends for luxury properties in various waterfront communities.

V D B LU X U RY | C O L DW EL L BA N K ER BA I N B E L L E V U E | MADISON PARK

AVERAGE PRICE OF SOLD HOMES YTD 2017 YTD 2016 % CHG

8

5

60.0%

$4,192,000

$3,981,200

5.3%

Hunts Point

1

3

-66.7%

$8,150,000

$5,006,000

62.8%

Kenmore / Lake Forest Park

2

2

0.0%

$3,839,000

$2,407,475

59.5%

Kirkland

7

8

-12.5%

$3,738,571

$3,315,223

12.8%

Medina

1

2

-50.0%

$8,948,000

$6,306,775

41.9%

Mercer Island

15

13

15.4%

$4,605,693

$3,628,938

26.9%

Renton

2

0

-

$2,600,900

-

-

Seattle

3

3

0.0%

$4,540,000

$3,950,000

14.9%

Yarrow Point

2

2

0.0%

$3,100,000

$3,305,000

-6.2%

Bellevue

3

2

50.0%

$2,898,333

$2,505,000

15.7%

Issaquah

2

0

-

$3,624,400

-

-

Redmond

4

1

300%

$2,987,500

$3,750,000

-20.3%

Sammamish

2

3

-33.3%

$2,900,000

$3,300,833

-12.1%

Bainbridge Island

10

4

150%

$2,381,700

$4,082,139

-41.7%

Edmonds/Woodway

1

1

0.0%

$2,150,000

$8,000,000

-73.1%

Gig Harbor/Fox Island

3

1

200%

$2,433,333

$2,000,000

21.7%

Des Moines/Normandy Park

2

2

0.0%

$3,105,000

$2,437,500

27.4%

San Juan Islands

6

3

100.0%

$3,504,167

$2,450,000

43.0%

Seattle/Richmond Beach

5

0

-

$2,662,000

-

-

Whidbey Island

3

1

200%

$3,173,333

$5,100,000

-37.8%

Lake Union

1

1

0%

$3,050,000

$2,000,000

52.5%

Portage Bay

0

1

-

-

$2,750,000

-

PUGET SOUND

LAKE SAMMAMISH

LAKE WASHINGTON

Bellevue

LU

N U M B E R O F C LO S E D S A L E S YTD 2017 YTD 2016 % CHG

PB

LUXURY WATERFRONT

Based on information from the Northwest Multiple Listing Service, data compares YTD 2017 and YTD 2016 sales of $2M+ single family waterfront homes.

LUXURY MARKET - SUMMER REVIEW

*Information and statistics derived by CB Bain from the Northwest Multiple Listing Service (NWMLS). Statistics not compiled or published by the NWMLS.

BELLEVUE 150 BELLEVUE WAY SE, BELLEVUE, WA 98004 MADISON PARK 4227 EAST MADISON STREET, SEATTLE, WA 98122