Pacific Northwest Market Review - Second Quarter 2017

Page 1

PACIFIC NORTHWEST Q2 2017 MARKET REPORT www.vdbestates.com

Puget Sound Southwest Washington Portland Oregon


VDB Estates : 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.

As the founder of VDB Estates, Mark has assembled an extremely capable team of talented professionals who work tirelessly providing exceptional client services. Skilled in their field, they constantly review, adjust, and redevelop various aspects of the business to get the best results. Specialties include Photography, Cinematography, Creative Writing, Staging, Graphic Design, Marketing, Social Media, International Business, Listing/Transaction Management, and Escrow. The team’s success is attributed to expertise, powerful resources and a well-executed, structured plan. Performing from a position of strength, VDB Estates continues to be Coldwell Banker Bain’s #1 Team year after year.

Mark von der Burg | Luxury Division Director


ABOUT COLDWELL BANKER BAIN

Coldwell Banker Bain is the 17th largest real estate company in the country, helping people buy and sell homes in the Pacific Northwest since 1972. With 1000+ brokers in 31 offices throughout Washington and Oregon, the company provides the full spectrum of services to buyers and sellers, with special expertise in the luxury realm. Additionally, the company has once again earned the national Coldwell Banker Chairman’s Circle designation for outstanding performance in volume for 2016, ranking as a number one

network affiliate out of 3,000 offices in 49 countries. The company operates as Coldwell Banker Bain in Western Washington and in the Portland/Vancouver metropolitan area, also providing services in property management, commercial real estate and real estate investment, and relocation management. Coldwell Banker Bain consistently ranks among the Top 20 Real Estate Companies in the nation as cited by Real Trends and RIS Media’s Real Estate. For more information, visit: www.coldwellbankerbain.com

PACIFIC NORTHWEST SECOND QUARTER MARKET REPORT - 2017


SECOND QUARTER NUMBERS

Seattle, Wash (July 14, 2017) – Coldwell Banker Bain, a leading Pacific Northwest real estate market brokerage, releases its second quarter market report providing a variety of statistics for the sale of homes in neighborhoods and counties throughout the Puget Sound region, as well as for segments including luxury and condos. The second quarter report reflects activity between April 1, 2017 and June 30, 2017*. Observations by principal managing brokers working in each major market are also included. Reflecting on the second quarter numbers, Mike Grady, CB Bain President and COO, pointed out the hot spots: “Ballard/Green Lake is hot!! Compared to same quarter last year the inventory shrank almost 33%, with currently only 9 days of active inventory.” He continued, “Redmond is also hot… leading the way with a misery index of -41%, which is inventory that is 41% smaller than the same in the 2nd quarter in 2016.” Grady went onto say, “The King County Condo market has only 13 days of inventory in Seattle and 18 days on the

Eastside. Demand is high and inventories continue to shrink precipitously (-45.1% in Seattle and -29% on the Eastside) compared to the 2nd quarter of 2016.” He also added that, “The average price for a single family detached home on Mercer Island and in Magnolia now exceeds $1.8M, and $1.3M in Bellevue, Capitol Hill and Madison Park! The disparity between these areas compared to those areas to the north and to the south in the Puget Sound region continues to grow: Lynnwood (below $500K) and Everett (approx. $400K) to the North and Tacoma ($359K) and Puyallup ($332K) to the south are just not keeping up with the price increases in these King County markets. Although the distance between these communities remains the same as 30 years ago when prices diverged only 25% – 30%, commute times have separated these communities and affected the demand causing unusually incongruent pricing for such a close geography.” View Full PDF Report here.

PACIFIC NORTHWEST SECOND QUARTER MARKET REPORT - 2017


EASTSIDE AREA Bellevue Bothell Duvall/Carnation Kirkland Issaquah/Sammamish Mercer Island Redmond Woodinville

2017 SECOND QUARTER MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price (Nearest $000) “In the second quarter we saw multiple offers, aggressive buyer tactics, short market times and rapidly rising prices. Home and condo sales were hot, as reflected here: All Eastside communities in this report ended the quarter $1,316,000 with less inventory than they had at the end of Q2 2016. We are still playing $644,000 catch-up, despite more listings having come on the market in June and early July. Homes in good condition in highly desirable neighborhoods still receive $651,000 multiple offers, but only if they are priced right. If they are overpriced - or in poor condition - they may well meet the opposite fate. We advise our sellers $990,000 to be prudent with home prep and pricing given the increased competition. At $977,000 the same time, we advise our buyers - some of whom may have ducked out of the spring market due to fatigue or frustration - to $1,802,000 consider jumping back in while there are a few more choices. $953,000 Even with rising home prices, the third quarter may well be the best time for buyers to finally have a chance at owning a piece $893,000 of the Eastside.”

Total Eastside Area

$907,000

Bellevue Bothell Duvall | Carnation Kirkland Issaquah | Sammamish Mercer Island Redmond Woodinville Area Condos

$488,000

–Thadine Bak, Principal Managing Broker Broker of CB Bain’s Bellevue office

$1,902,000

Area Waterfront (SF Only) Area Luxury ($2+M | SF + Condo)

$3,021,000

$0k

$500k

$1000k

$1500k

$2000k

$2500k

$3000k

$3500k

Number of Sales Closed

1000

2174

800

863

Total East Side Sales Closed

600 400

366

200 0

37

527

500 410

117

110

329

90

175

165

Bellevue

Bothell

Duvall | Carnation

Kirkland

Issaquah | Sammamish

Mercer Island

Redmond

Woodinville

Area Condos Only

Area Waterfront (SF only)

Area Luxury ($2+M | SF+C)

17

18

19

16

30

32

12

18

19

68

62

Average Days on Market Current Inventory in Units

Total Eastside Area

1041

154

120

57

124

196

67

65

67

176

1041

227

-20.4%

-13.0%

-22.1%

-25.0%

-12.7%

-11.3%

-13.0%

-41.4%

-14.1%

-29.0%

-19.9%

-3.0%

Change from 2016

PACIFIC NORTHWEST SECOND QUARTER MARKET REPORT - 2017


SEATTLE AREA Ballard | Green Lake Capitol Hill Madison Park Magnolia NE Seattle Seattle Central South Lake Union | Queen Anne West Seattle

2017 SECOND QUARTER MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price (Nearest $000) $934,000

Seattle Area

$1,235,000

Capitol Hill

$1,347,000

Madison Park

$1,854,000

Magnolia

$898,000

NE Seattle

$848,000

Seattle Central

$1,119,000

So. Lake Union | Queen Anne

$826,000

West Seattle Area Condos

“We are feeling the volume of new listings being added to inventory and wondering if this is a normal seasonal increase or if it signals a change in the market. We have observed a few properties hitting their offer review date with no offers in hand. Also, we are seeing an increasing number of price reductions on properties with no activity. Sellers are pushing prices up as the result of previous bidding wars creating comparable sales in their locale but the buyer demand is still high and multiple offers still dominate the market.”

$847,000

Ballard | Green Lake

– John Deely, Principal Managing Broker for CB Bain’s Lake Union office

$489,000 $1,677,000

Area Waterfront (SF Only)

$2,570,000

Area Luxury ($2+M | SF + Condo)

$0K

$500K

$1000K

$1500K

$2000K

1570

500

546

375

200 82

100

14

Total Seattle Sales Closed

448

300

0

$3000K

Number of Sales Closed

600 400

$2500K

252

127

39

119

128

18

50

Ballard | Green Lake

Capitol Hill

Madison Park

Magnolia

NE Seattle

Seattle Central

S. Lake Union | Queen Anne

West Seattle

Area Condos Only

Area Waterfront (SF Only)

Area Luxury ($2+M | SF+C)

9

10

22

18

12

18

15

19

12

34

46

25

79

28

75

7.7%

17.2%

Average Days on Market Current Inventory in Units

Total Seattle Area

355

45

-10.6%

-32.9%

18

30

48

77

50.0%

0.0%

-30.2% 18.8%

76

31

-2.6%

-27.9%

-45.1% 28.6%

Change from 2016

PACIFIC NORTHWEST SECOND QUARTER MARKET REPORT - 2017


SOUTH SOUND AREA Gig Harbor | Key Peninsula North Tacoma | Lakewood | University Place Puyallup | Graham SE King County SW King County Bainbridge Island Silverdale

2017 SECOND QUARTER MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price (Nearest $000) $386,000

South King, Pierce & Kitsap Areas

$506,000

Gig Harbor/Key Peninsula North Tacoma | University Place Lakewood

$359,000 $332,000

Puyallup | Graham

$451,000

SE King County

$427,000

SW King County Bainbridge Island

$370,000

SIlverdale So. King, Pierce & Kitsap County Condos

“Pierce County home prices showed another increase as we entered the summer months and have now eclipsed the all-time highs of 2007. With high demand and low inventory, this looks like the beginning of a sustained period of home price increases, with buyers still not showing any price reluctance. Buyers from more expensive markets up north continue to reevaluate their commutes to consider Pierce County’s relatively low prices. All buyers are focusing on new listings, though there are potential good values among listings that haven’t sold. Toward the end of this quarter, listing inventory made some headway against sales and grew to an eight-month high with 2,215 homes for sale. This is still below the June 2016 figure of 2,322, but is a welcome relief for buyers who are seeing a few more choices with each listing tour. Sales numbers decreased just slightly to 2009 levels, which is still $965,000 a new record for June. Well-priced new listings continue to experience a market frenzy.” – Stephanie Callen CB Bain Puyallup office

$247,000

So. King & Pierce County Waterfront (SF Only)

$758,000

So. King, Pierce & Kitsap County Luxury ($1+M | SF+Condo)

$1,418,000

$0K

$300K

$600K

$900K

$1200K

Number of Sales Closed

2000

8312

1500

South King, Pierce & Kitsap Area Sales Closed

1648

1000 847

500

1052

962

459

0

30

$1500K

892 297

149

91

137

Gig Harbor | Key Peninsula

N. Tacoma | University Place | Lakewood

Puyallup | Graham

SE King County

SW King County

Bainbridge Island

Silverdale

So. King, Pierce & Kitsap County Condos

So. King, Pierce & Kitsap County Waterfront (SF Only)

So. King, Pierce & Kitsap County Luxury ($1+M | SF+C)

67

24

27

23

24

43

40

23

75

108

54

303

421

293

-3.6%

-22.5%

-9.1%

Average Days on Market Current Inventory in Units

Total South King, Pierce & Kitsap Areas

3960

385

385

-11.2%

-4.2%

-14.8%

465

579

447

-26.6%

-21.6%

5.7%

94 0.0%

3.5%

Change from 2016

PACIFIC NORTHWEST SECOND QUARTER REPORT - 2017


NORTH SOUND AREA (Snohomish, Skagit, Whatcom) Anacortes Bellingham Edmonds Everett Lynnwood Marysville

2017 SECOND QUARTER MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price (Nearest $000) $450,000

North Sound Area

“We continue to see very low inventory, multiple offers and buyer fatigue. However, buyers this year are not giving up easily. They are doggedly determined to find their home and win their bid without giving up their protective rights, like inspections, financing, etc. Once again, we are experiencing low appraisals. We recently had a situation with a $30K undervalued appraisal on new construction. Our agent challenged the appraisal by doing a lot of research. Ultimately, the new appraisal value was raised $30K to the agreedupon sale amount. It took a lot of extra work but the lesson is, do the work and you have a far better chance of getting the value where it should be. Our Snohomish County economy remains strong and all indicators tell us this is not likely to change anytime soon.”

$487,000

Anacortes

$430,000

Bellingham

$669,000

Edmonds

$401,000

Everett

$498,000

Lynnwood

$350,000

Marysville

$295,000

3-County Area Condos 3-County Area Waterfront (SF Only)

– Diedre Haines, Principal Managing Broker of CB Bain Lynnwood and Edmonds

$557,000

3-County Area Luxury ($1+M | SF+C)

$1,380,000

$0K

$300K

$600K

$900K

500 498

Total North Sound Sales Closed

435

300

347

200

24

1906

576

400

0

$1500K

Number of Sales Closed

600

100

$1200K

272

230

65

124

6

Anacortes

Bellingham

Edmonds

Everett

Lynnwood

Marysville

3-County Area Condos

3-County Area Waterfront (SF Only)

3-County Area Luxury ($1+M | SF+C)

65

31

22

15

12

25

17

50

65

139

184

90

33

-14.2%

-7.5%

-15.1%

Average Days on Market Current Inventory in Units

Total North Sound Area

907

127

260

74

-8.7%

-6.6%

-20.0%

-23.7%

185

122

12.1%

13.0%

6.5%

Change from 2016

PACIFIC NORTHWEST SECOND QUARTER REPORT - 2017


PUGET SOUND AREA COUNTIES Island King Kitsap Pierce Skagit Snohomish Whatcom

2017 SECOND QUARTER MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price (Nearest $000) Island

$407,000

King

$760,000

Kitsap

$404,000

Pierce

$347,000

Skagit

$354,000

Snohomish

$481,000 $371,000

Whatcom

$0K 8000 7000 6000 5000 4000 3000 2000 1000 0

$100K

$200K

$300K

$400K

$500K

$600K

$700K

$800K

Number of Sales Closed 7853

4339

1273

526

603

3272

924

Island

King

Kitsap

Pierce

Skagit

Snohomish

Whatcom

50

19

37

33

46

22

46

Average Days on Market Current Inventory in Units 444

2619

738

2196

416

1366

730

-9.9%

-19.2%

-4.2%

-5.7%

-19.1%

-8.6%

-16.7%

Change from 2016

PACIFIC NORTHWEST SECOND QUARTER REPORT - 2017


SOUTHWEST WASHINGTON East Clark County North Clark County West Clark County

2017 SECOND QUARTER MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price East Clark County

North Clark County

West Clark County

(Nearest $000)

$363,000

$378,000

$357,000

$201,000

Area Condos

$1,718,000

Area Luxury ($1+M | SF+C)

$0K

$500K

$1000K

$1500K

$2000K

Number of Sales Closed

1200 1000 800

1067

600 400

619 105

200 0

343

7

East Clark County

North Clark County

West Clark County

Area Condos

Area Luxury ($1+M | SF+C)

39

35

34

35

199

56

64

9.8%

3.2%

Average Days on Market Current Inventory in Units 578

280

337

-15.5%

-3.1%

-0.6% Change from 2016

PACIFIC NORTHWEST SECOND QUARTER REPORT - 2017


SOUTHWEST WASHINGTON COUNTIES Clark County Cowlitz County

2017 SECOND QUARTER MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price (Nearest $000)

Clark County

$377,000

Cowlitz County

$227,000

$0K

$50K

$100K

$150K

$200K

$250K

$300K

$350K

$400K

Number of Sales Closed

2000 1500 1000

1981 389

500 0 Clark County

Cowlitz County

34

35

Average Days on Market Current Inventory in Units 1159

228

-8.1%

-16.8% Change over first quarter 2017

PACIFIC NORTHWEST SECOND QUARTER REPORT - 2017


PORTLAND OREGON REGION

Portland, Oregon (July 14, 2017) – Coldwell Banker Bain, a leading Northwest real estate market brokerage, releases its second quarter market report providing a variety of statistics for the sale of homes in neighborhoods and counties in SW Washington and Oregon, as well as for segments including luxury and condos. This second quarter report reflects activity between April 1, 2017and June 30, 2017*.

Reflecting on the second quarter numbers, David Sly, Principal Managing Broker of the Portland Uptown and Lake Oswego office, pointed to interesting data trends: “Lake Oswego… at 144 days of inventory, it is the “fullest” inventory marketplace of those areas reported throughout the Northwest. Oregon market Inventories have been expanding, increasing from 12% (West Portland) to 44% (NE Portland) compared to the 2nd quarter of last year. Remarkably, across the river in Vancouver inventories are shrinking more like the Puget Sound area with some areas (East Clark County) down by almost 16%.

The condo market in both the SW Washington and Portland markets has experienced rising inventories of 10% and 29%, respectively, with 925 sales reported in the quarter in the 3-county Portland region.” View Full PDF Report here. — David Sly, Principle Managing Broker of Portland Uptown and the Lake Oswego CB Bain Office


PORTLAND OREGON REGION Beaverton | Aloha Lake Oswego | West Linn Milwaukie | Happy Valley North Portland Northeast Portland Southeast Portland West Portland | Raleigh Hills

2017 SECOND QUARTER MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price (Nearest $000) $435,000

North Portland

$479,000

Northeast Portland

$425,000

Southeast Portland

$703,000

West Portland | Raleigh Hills

$736,000

Lake Oswego | West Linn Milwaukie | Gladstone | Happy Valley

$437,000 $417,000

Beaverton | Aloha

$323,000

Portland Metro (Tri-County) Area Condos Portland Metro Area Luxury ($1+M | SF+C)

$1,455,000

$0K

$300K

800

$1200K

$1500K

925

880

600

673

400

0

$900K

Number of Sales Closed

1000

200

$600K

616

533

538

351

291

185 North Portland

Northeast Portland

Southeast Portland

West Portland | Raleigh Hills

Lake Oswego | West Linn

Milwaukie | Gladstone | Happy Valley

Beaverton | Aloha

Portland Metro (Tri-County) Area Condos

Portland Metro Area Luxury ($1+M | SF+C)

17

19

20

28

39

34

20

26

71

Average Days on Market Current Inventory in Units 120

355

455

441

16.5%

44.3%

17.9%

12.2%

405

405

246

464

484

14.1%

0.2%

26.8%

28.5%

14.2%

Change from 2016

PACIFIC NORTHWEST SECOND QUARTER REPORT - 2017


OREGON REGION COUNTIES Clackamas Multnomah Yamhill Washington

2017 SECOND QUARTER MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price

(Nearest $000)

Clackamas County

$496,000

Multnomah County

$479,000

$464,000

Washington County

$341,000

Yamhill County

$0K

$100K

$200K

$300K

$400K

$500K

Number of Sales Closed

3000 2500 2000

2594

1500 1000

2036 1617

396

500 0

Clackamas County

Multnomah County

Washington County

Yamhill County

38

23

25

48

Average Days on Market Current Inventory in Units 1251

1512

1112

0.8%

21.0%

18.3%

286 -10.3%

Change over first quarter 2017

PACIFIC NORTHWEST SECOND QUARTER REPORT - 2017


SECOND QUARTER MARKET REPORT - 2017

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


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