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LUXURY
MARKET REVIEW | 2017 By The Numbers | End of Year Recap
| MADISON PARK | BELLEVUE | LINCOLN SQUARE
LUXURY MARKET REVIEW
A LOOK AT LUXURY
Annual Real Estate Market Recap
With Western Washington’s economy continuing to thrive and local wealth maintaining its upward momentum, our luxury real estate market proved to be robust with exceptional growth and record-setting results. Sales of single family homes priced $2M+ rose dramatically in 2017, with a 36.3% increase in the number of units sold and a 38.7% increase in dollar volume over the previous year. The average market time for high-end properties decreased by 15.7%, further proof of the luxury segment’s strength. Driven by demand from relocating executives and downsizing baby boomers alike, luxury condominium prices saw a slight increase of 1.9% in average price. The actual number of condos selling above $1M dipped slightly by 10.9% in 2017, with total dollar volume following suit and dropping by 9.2%. This decrease is due primarily to a lack of condo inventory. High-end new construction homes proved very attractive to affluent buyers; total sales in this segment rose by 68.2% for the year.
THE YEAR AHEAD
A look at what’s to come.
In 2018, we fully expect Western Washington will continue to attract home buyers from around the nation and the world. Its robust economy, top-rated schools and vast amenities draw high-net-worth individuals to the region. The lifestyle, climate and picturesque views make them stay. With local companies thriving, the booming jobs sector supports some of the highest wages in the country. As a result, wealth creation in the region is at an all-time high and maintains its upward momentum. The luxury real estate market soared with record sales recorded for 2017 and we fully expect this trend to continue through 2018. Lifestyle properties are attracting high-net-worth buyers, both locals who are “moving up” and those relocating from other markets. A record number of Seattle-area buyers are stretching into the luxury segment, in part due to record-high stock values. Non-resident buyers, especially those moving from the Bay Area, New York, Europe and Asia, continue to find Western Washington home prices relatively affordable. View properties – those overlooking water, mountains or skylines – remain coveted 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 across the world.
LUXURY MARKET REVIEW
It is an exciting time to list and sell high-end homes in Western Washington. Sales of homes at $2M+ rose dramatically over the previous year, with a 36% increase in units sold and a 39% increase in sales volume to $2.2 billion. Though the average purchase price of a luxury home was relatively at compared to the previous year, the upper-end market moved fast. The average market time for a high-end property decreased by 16%, further proof of the luxury segment’s strength. In 2017 luxury new construction projects saw incredible growth. Strong performance from many Eastside cities heavily influenced the overall total units sold rising 58% over the These charts reflect Northwest MLS data for homes sold at or above $2M and condominiums sold at or above $1M.
SINGLE FAMILY HOMES
CONDOMINIUM HOMES
2017 vs. 2016
2017 vs. 2016
Total Units Sold
Total Units Sold 304
766
36
%
-11%
341
562
Total Sales Volume
Total Sales Volume
$2,271,379,570
38
%
$461,501,032 $508,222,580
$1,637,653,543
Average Sold Price
Average Sold Price
2
%
$2,965,246
$1,518,096
$2,913,974
$1,490,389
-16
2%
Avg. Days on Market
Avg. Days on Market
%
-9%
59 Days 70 Days
60 Days 83 Days
-28%
Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 12/31/17.
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 | LINCOLN SQUARE
previous year. Total sales volume saw a whopping 68% jump while the average sold price was up 7% despite slightly longer average market times. Who’s buying Western Washington’s luxury homes? Local tech employees who are stretching their real estate investments because their companies’ stock options keep rising in value. Relocating executives from more expensive markets who are attracted to the stunning views and relative affordability of our city’s high-end homes. And, foreign buyers who consider Seattle luxury real estate a sound investment and an exceptional lifestyle opportunity. These charts reflect Northwest MLS data for homes sold at or above $2M and condominiums sold at or above $1M.
NEW CONSTRUCTION
ALL PROPERTY TYPES
2017 vs. 2016
2017 vs. 2016
Total Units Sold
Total Units Sold
58
180
%
803 605
114
Total Sales Volume
68
Total Sales Volume
$519,985,143
%
2,376,069,731
$309,170,263
7
Average Sold Price
$2,888,806 $2,712,020
2,958,991
7
1%
2,919,519
Avg. Days on Market
Avg. Days on Market
%
35%
1,766,308,721
Average Sold Price
%
33%
63 Days 59 Days
59 Days 75 Days
-21%
Some NWMLS data compiled by Trendgraphix. All property photos courtesy of Coldwell Banker Bain’s Bellevue and Madison Park offices.
LUXURY MARKET REVIEW
SEATTLE 2017 | 2016 | % CHANGE TOTAL SALES VOLUME
$419.2M
$348.9M
20%
TOTAL HOMES SOLD 154 | 125 | 23.2% AVG. SALES PRICE $2,722,443 | $2,791,489 | -2.5% AVG. DAYS ON MARKET 47 | 63 | -25.4% SOLD/LIST PRICE % 98.19% | 98.55% | -0.4%
Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 12/31/17.
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 | LINCOLN SQUARE
EASTSIDE 2017 | 2016 | % CHANGE TOTAL SALES VOLUME
$1.621B
$1.126B
44%
TOTAL HOMES SOLD 524 | 384 | 36.5% AVG. SALES PRICE $3,094,595 | $2,934,766 | 5.4% AVG. DAYS ON MARKET 54 | 52 | 5.4% SOLD/LIST PRICE % 97.17% | 97.02% | 0.1%
Some NWMLS 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
2017 | 2016 | % CHANGE TOTAL SALES VOLUME
$145.3M
$88.6M
64%
TOTAL HOMES SOLD 56 | 29 | 93.1% AVG. SALES PRICE $2,594,907 | $3,056,896 | -15.1% AVG. DAYS ON MARKET 49 | 62 | -21.0% SOLD/LIST PRICE % 97.23% | 97.06% | 0.2%
CLYDE HILL WEST BELLEVUE Beaux Arts | Downtown Bellevue | Enatai Hunts Point | Vuecrest | Yarrow Point
2017 | 2016 | % CHANGE TOTAL SALES VOLUME
$220.6M
$205.3M
7%
TOTAL HOMES SOLD 60 | 70 | -14.3% AVG. SALES PRICE $3,676,846 | $2,933,664 | 25.3% AVG. DAYS ON MARKET 64 | 55 | 16.4% SOLD/LIST PRICE % 97.21% | 96.60% | 0.6%
Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 12/31/17.
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 | LINCOLN SQUARE
ISSAQUAH SAMMAMISH Aldarra | Beaver Lake | East Lake Sammamish Issaquah Highlands | Pine Lake | Windsor Greens
2017 | 2016 | % CHANGE TOTAL SALES VOLUME
$109.2M
$59.5M
84%
TOTAL HOMES SOLD 38 | 21 | 81.0% AVG. SALES PRICE $2,875,695 | $2,835,310 | 1.4% AVG. DAYS ON MARKET 48 | 42 | 14.3% SOLD/LIST PRICE % 97.93% | 97.65% | 0.3%
KIRKLAND Carillon Point | Downtown | East of Market Holmes Point | Houghton | West of Market
2017 | 2016 | % CHANGE TOTAL SALES VOLUME
$149.2M
$106.8M
40%
TOTAL HOMES SOLD 56 | 41 | 36.6% AVG. SALES PRICE $2,665,232 | $2,605,029 | 2.3% AVG. DAYS ON MARKET 29 | 38 | -23.7% SOLD/LIST PRICE % 98.70% | 97.06% | 1.7%
Some NWMLS data compiled by Trendgraphix. All property photos courtesy of Coldwell Banker Bain’s Bellevue and Madison Park offices.
LUXURY MARKET REVIEW
MEDINA
2017 | 2016 | % CHANGE TOTAL SALES VOLUME
$192.7M
$105.7M
82%
TOTAL HOMES SOLD 48 | 29 | 65.5% AVG. SALES PRICE $4,015,445 | $3,645,329 |10.2% AVG. DAYS ON MARKET 48 | 42 | 14.3% SOLD/LIST PRICE % 97.26% | 97.57% | -0.3%
MERCER ISLAND
2017 | 2016 | % CHANGE TOTAL SALES VOLUME
$316.3M
$177.4M
78%
TOTAL HOMES SOLD 107 | 56 | 91.1% AVG. SALES PRICE $2,956,479 | $3,168,934 | -6.7% AVG. DAYS ON MARKET 76 | 67 | 13.4% SOLD/LIST PRICE % 97.18% | 95.53% | 1.7%
Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 12/31/17.
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 | LINCOLN SQUARE
REDMOND WOODINVILLE Bear Creek | Blakely Woods | Hollywood Hill Lake of the Woods | Novelty Hill | Union Hill
2017 | 2016 | % CHANGE TOTAL SALES VOLUME
$55.7M
$48.2M
16%
TOTAL HOMES SOLD 21 | 17 | 23.5% AVG. SALES PRICE $2,656,328 | $2,837,765 | -6.4% AVG. DAYS ON MARKET 64 | 58 | 10.3% SOLD/LIST PRICE % 94.81% | 96.18% | -1.4%
SEATTLE: DOWNTOWN MAGNOLIA & QUEEN ANNE* Belltown | Lake Union | Magnolia Queen Anne | South Lake Union
2017 | 2016 | % CHANGE TOTAL SALES VOLUME
$161.9M
$191.6M
-16%
TOTAL HOMES SOLD 58 | 71 | 8.1% AVG. SALES PRICE $2,684,462 | $2,463,000 | 9.0% AVG. DAYS ON MARKET 49 | 57 | -14.0% SOLD/LIST PRICE % 98.88% | 99.74% | -0.9%
Some NWMLS 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
2017 | 2016 | % CHANGE TOTAL SALES VOLUME
$173.1M
$143.6M
20%
TOTAL HOMES SOLD 64 | 51 | 25.5% AVG. SALES PRICE $2,705,059 | $2,816,631 | -4.0% AVG. DAYS ON MARKET 39 | 47 | -17.0% SOLD/LIST PRICE % 98.56% | 98.51% | 0.1%
SEATTLE: NORTHEAST Bryant | Hawthorne Hills | Inverness | Laurelhurst Ravenna | View Ridge | Windermere
2017 | 2016 | % CHANGE TOTAL SALES VOLUME
$66.9M
$67.4M
-0.7%
TOTAL HOMES SOLD 22 | 21 | 4.8% AVG. SALES PRICE $3,043,841 | $3,210,714 | -5.2% AVG. DAYS ON MARKET 61 | 108 | -43.5% SOLD/LIST PRICE % 96.78% | 98.70% | -1.9%
Based on information from the Northwest Multiple Listing Service, data reflects sales of Single Family Homes between 1/1/17 and 12/31/17.
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 | LINCOLN SQUARE
SEATTLE: NORTHWEST Broadview | Green Lake | Innis Arden | North Beach Phinney Ridge | The Highlands | Wallingford
2017 | 2016 | % CHANGE TOTAL SALES VOLUME
$38.3M
$4.4M
771%
TOTAL HOMES SOLD 16 | 2 | 700% AVG. SALES PRICE $2,396,367 | $2,200,000 | 8.9% AVG. DAYS ON MARKET 75 | 8 | 837.5% SOLD/LIST PRICE % 98.26% | 100.00% | -1.7%
SEATTLE: SOUTH & WEST Alki | Beach Drive | Fauntleroy | Leschi North Admiral | Mt. Baker | Seward Park
2017 | 2016 | % CHANGE TOTAL SALES VOLUME
$44.5M
$42.3M
5%
TOTAL HOMES SOLD 17 | 14 |21.4% AVG. SALES PRICE $2,619,265 | $3,023,714 | -13.4% AVG. DAYS ON MARKET 53 | 77 | -31.2% SOLD/LIST PRICE % 96.35% | 95.85% | 0.5%
Some NWMLS 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 Tides are high in the luxury waterfront market. From Lake Sammamish to the San Juan Islands, 2017 saw record-high activity. The volume of waterfront homes purchased at $2M+ and above soared 33% over the previous year’s volume, to over $700M. Coveting the waterfront lifestyle, wealthy buyers flexed their financial muscles. The total volume of sales grew by 25.8% year-over-year, to almost half a billion dollars. Seattle had $80M in luxury waterfront home sales last year. Units of waterfront homes sold also increased by 33%. Waterfront buyers were quick to make their purchases, with the number of days a home spent on the market dropping by 30.3%. Regardless, wealthy buyers will continue to covet the waterfront lifestyle and as a result, a home on Puget Sound, Lake Sammamish or Lake Washington will always command top dollar.
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 | LINCOLN SQUARE
AVERAGE PRICE OF SOLD HOMES YTD 2017 YTD 2016 % CHG
19
15
26.7%
$5,409,866
$4,104,467
31.8%
Hunts Point
3
4
-25.0%
$7,279,333
$5,504,500
32.2%
Kenmore / Lake Forest Park
5
3
66.7%
$3,003,600
$2,354,983
27.5%
Kirkland
11
14
-21.4%
$3,630,273
$3,231,270
12.3%
Medina
6
5
20.0%
$8,786,833
$5,220,110
68.3%
Mercer Island
28
24
16.7%
$4,214,425
$4,128,295
2.1%
Renton
3
0
-
$2,417,267
-
-
Seattle
11
12
-8.3%
$4,014,364
$4,712,708
-14.8%
Yarrow Point
2
4
-50.0%
$3,100,000
$4,250,000
-27.1%
Bellevue
8
5
60.0%
$2,979,875
$3,037,184
-1.9%
Issaquah
2
2
0.0%
$3,624,400
$2,673,500
35.6%
Redmond
6
4
50%
$2,710,167
$3,062,500
-11.5%
Sammamish
15
9
66.7%
$2,876,300
$3,185,278
-9.7%
Bainbridge Island
22
7
214.3%
$2,564,045
$3,505,508
-26.9%
Edmonds/Woodway
2
3
-100%
$2,175,000
$4,791,667
-54.6%
Gig Harbor/Fox Island
7
2
250.0%
$2,369,286
$2,050,000
15.6%
Des Moines/Normandy Park
2
2
0.0%
$3,105,000
$2,437,500
27.4%
San Juan Islands
10
7
42.9%
$3,291,800
$3,069,643
7.2%
Seattle/Richmond Beach
11
3
266.7%
$2,562,091
$2,425,000
5.7%
Whidbey Island
5
1
400%
$2,828,000
$5,100,000
-44.5%
Lake Union
1
3
-66.7%
$3,050,000
$2,489,167
22.5%
Portage Bay
1
1
0.0%
0
$2,750,000
-100%
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
Some NWMLS data compiled by Trendgraphix. All property photos courtesy of Coldwell Banker Bain’s Bellevue and Madison Park offices.
LUXURY MARKET - END OF YEAR RECAP
*Information and statistics derived by CB Bain from the Northwest Multiple Listing Service (NWMLS). Statistics not compiled or published by the NWMLS.
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