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PACIFIC NORTHWEST 2016 RECAP

ANNUAL MARKET REPORT Portland Oregon Puget Sound Southwest Washington 01


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

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A WORD FROM THE PRESIDENT

“2016 was a great year for real estate and we believe that 2017 will be equally strong.”

It’s appropriate at the start of a new year to look back and reflect on the 12 months just ended, time to take stock, to review and to set lofty goals. By all accounts, 2016 was a banner year for real estate. According to S&P/Case-Shiller in November, 2016, Seattle and Portland hold the top two spots for residential real estate markets in the United States, with annual valuation growth of 11% and 10.9%, respectively. Why? Two reasons. First, our region has enjoyed some of the fastest employment growth in the U.S. over the past three years – and among the lowest new construction starts in the West. In the Puget Sound region, for example, 70,000 new households relocated here for jobs in the past 12 months, yet only 9,000 building permits were issued in the four-county area during the same period. There’s no question we’ve got tremendous job growth, but it outpaces basic supply and demand for housing. And the same is true for the metro Portland/Vancouver region. Second, low mortgage rates continue to fuel our region’s hot real estate market, staying below 4% for much of last year before edging up to just above 4% in the fourth quarter. Why? Home mortgage rates reflect the world’s confidence in the U.S. economy. When European and Asian economies struggle, their investors buy U.S. mortgage-backed securities (i.e., huge bundles of home loans), which drives interest rates down. As their economies improve, foreign investors put less of their money into our economy, which causes interest rates to rise. Additionally for us in 2016, uncertainty about an incoming president and new administration made markets nervous and rates rose slightly. That said, we don’t believe mortgage rates will climb above 5% this year nor are they likely to in 2018. In summary, 2016 was a great year for real estate, particularly in our region, and we believe that 2017 will be equally strong. – Mike Grady

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PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


2016 ANNUAL MARKET REPORT

Seattle, Wash. (Jan. 20, 2017) – Coldwell Banker Bain, a leading Pacific Northwest real estate market brokerage, released its market annual 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 annual report reflects activity between Jan. 1, 2016 and Dec. 31, 2016*. Observations by principal managing brokers working in each major market are also included. Reflecting on the 2016 numbers, Mike Grady, CB Bain President and COO, said, “The data

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clearly show why the Puget Sound region is the hottest real estate market in the nation. And we expect 2017 to continue this trend, based on projected population and job growth numbers.” He continued, “We also see certain pockets of optimism for home buyers, if not related to price increases at least in inventory. Areas including Mercer Island, Magnolia, Seattle Central, West Seattle and Kitsap County provide some hope for inventory, and there is growth in available condos in Seattle as well. The biggest pain points continue to be in outlying counties, given the movement of people to these areas as a result of more affordability.”

PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


BELLEVUE

Thadine Bak, principal managing broker of CB Bain’s Bellevue office, said, “Even though we lamented the lack of single-family homes and condos for sale, Bellevue’s real estate market actually performed well in 2016. We saw 3.1% more units sold last year than in 2015. This was despite the tough conditions buyers confronted in the first five months of the year: too much competition for too little inventory. But the frenetic pace eased a bit starting in June as more sellers listed their homes. Buyers remained both active and aggressive right up

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to the year’s end. In December, our office had a number of listings receiving multiple offers, and brokers wrote offers throughout the holidays. As a result, prices for Bellevue single-family homes rose 10.6% last year and the average sale came in 1.7% over asking price. With home buyers still coveting Bellevue’s proximity to employers, schools and amenities, we expect these trends to continue in 2017.”

PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


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

2016 ANNUAL MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price (Nearest $000) Total Eastside Area

$882,600

Bellevue

$1,097,100

Bothell

$547,000

Duvall | Carnation

$534,500

Kirkland

$865,700

Issaquah | Sammamish

$863,700 $1,642,100

Mercer Island Redmond

$813,000

Woodinville

$761,300

Area Condos $405,600 Area Waterfront (SF Only)

$1,574,300

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

$2,943,800

$0k $0k

$500k $500k

$1000k $1000k

$1500k $1500k

$2000k $2000k

$2500k $2500k

$3000k $3000k

Number of Sales Closed

3500

8837

3000

3006

2500

Total Eastside Sales Closed

2000 1500 1000

1870 1296 399

500 0

33

1810

1501

303

1108 585

379

405

Bellevue

Bothell

Duvall | Carnation

Kirkland

Issaquah | Sammamish

Mercer Island

Redmond

Woodinville

Area Condos Only

Area Waterfront (SF only)

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

24

24

41

27

27

36

24

31

25

67

67

49

128

80

135

3.9%

28.6%

Average Days on Market Current Inventory in Units

Total Eastside Area

590

63

90

37

48

-20.90%

-32.2%

-34.3%

-22.9%

-44.8%

104

43

7.2%

65.4%

38 -36.7%

-25.6% 2.1%

Change from 2015

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PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


SEATTLE AREA

According to John Deely, principal managing broker of CB Bain’s Lake Union office, “The market velocity in Seattle is unique in that a large number of properties are moving through the market at an unusually fast pace. The market continued to climb in 2016 with more than 8,400 residential closed sales representing a 2% increase over 2015. The last time the annual sales in Seattle eclipsed this number was a decade earlier in 2006, closing out that year with about 8,600 sales. In 2006 we had approximately 12,200 listings

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come to market compared with a little over 9,700 in 2016. This represents a decrease of over 20% in available inventory but with nearly the same volume of closed sales. The last time Seattle had more than a months’ worth of residential inventory was in December of 2015, and in 2016 Seattle stayed below a onemonth supply of listings for the entire year. In 2016, the median price for Seattle residential properties increased 12.72% to a record of $619,990 and since 2012 we have experienced a 46.77% cumulative increase.”

PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


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

2016 ANNUAL MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price (Nearest $000) $827,700

Seattle Area

$730,400

Ballard | Green Lake

$1,044,000

Capitol Hill

$1,327,000

Madison Park

$940,900

Magnolia

$788,100

NE Seattle

$738,000

Seattle Central

$1,109,400

So. Lake Union | Queen Anne

$727,200

West Seattle Area Condos

$412,000 $1,493,600

Area Waterfront (SF Only)

$2,746,200

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

$0K $0k

$500K $500k

$1000K $1000k

$1500K $1500k

$2000K $2000k

5259

2000

2054 1569

500

21

135

300

355 88

133

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)

15

69

24

28

18

24

28

22

18

71

75

26

73

17

38

44.4%

25.9%

13.3%

Average Days on Market Current Inventory in Units 32

11

-3.0% 5.7%

791

342

396

Total Seattle Area

203

Total Seattle Sales Closed

1371

1000

0

$3000K $3000k

Number of Sales Closed

2500

1500

$2500K $2500k

14

17

-6.7% 10.0%

36

42

-12.2% 30.8%

25 -13.8%

27.3%

-2.6%

Change from 2015

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PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


SOUTH SOUND AREA

Mike Flynn, a broker in CB Bain’s Tacoma office, said, “Year-end inventory is once again smaller in Pierce County. There were 17% fewer homes for sale countywide as of New Year’s Eve than the year before. The only market areas with available inventory even or above last year are Gig Harbor, Fife and Brown’s Point/Dash Point. What connects North Tacoma, University Place and Lakewood (together down 33%) is that they are mature communities having almost no bare land for new subdivisions. Gig Harbor, on the other hand, has both solid new home supply and is up 1% in inventory over last year.

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New homes are not the whole story. Another type of seller is often absent from the market today. For a while it looked as though retirees could take advantage of their home values having risen with the market. The trouble now is that their next-home choices have moved up in price as well. So far up that a right-sizing move has become too expensive, and the decision to stay put is often deemed the best. Those choices not to sell, plus too few new homes, leave many sub-markets with home supply far below demand.”

PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


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

2016 ANNUAL MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price (Nearest $000) $379,400

South King and Pierce Areas Gig Harbor/Key Peninsula

$464,800

North Tacoma | University Place Lakewood

$317,200 $300,400

Puyallup | Graham

$407,800

SE King County

$373,000

SW King County

$362,200

Kitsap Area

$880,600

Bainbridge Island

$338,300

SIlverdale So. King & Pierce County Condos

$220,600

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

$731,500 $1,391,000

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

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$500k $300k

$1000k $600k

$1500k$900k $2000k $1200k $2500k

$3000k $1500k

Number of Sales Closed 18294

5400 6068

South King | Pierce Area Sales Closed

2933

Kitsap Area Sales Closed

3741

3419

2515

1441

386

306

533

252

Gig Harbor | Key Peninsula

N. Tacoma | University Place | Lakewood

Puyallup | Graham

SE King County

SW King County

Bainbridge Island

Silverdale

So. King | Pierce | Kitsap Co. Condos

So. King | Pierce | Kitsap Co. Waterfront (SF Only)

So. King | Pierce | Kitsap Co. Luxury ($1+M | SF+C)

72

42

41

33

33

50

36

37

87

103

61

Average Days on Market Current Inventory in Units

Total South King | Pierce Areas

1940

299

286

364

537

336

-10.0%

-1.3%

-27.0%

-15.9%

-2.5%

-11.3%

Total Kitsap Area

67

51

19.6%

24.4%

243

155

143

13.1%

11.7%

-3.6%

1310 -0.2%

Change from 2015

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PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


NORTH SOUND AREA (Snohomish, Skagit, Whatcom)

According to Diedre Haines, principal managing broker of CB Bain’s Lynnwood and Edmonds offices, “In 2016, we saw modest increases in all measurable categories, i.e. closed transactions, sales pending, and increased inventory. In South Snohomish, I expect 2017 to be similar. Not only is there a need to increase inventory but the demand and fast absorption rate makes it much more than a need. We should see an increase

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in new construction with Mountlake Terrace becoming the new ‘hot spot.’ Hopefully this will help somewhat but we are already seeing new construction pre-sales (new homes that never get listed or become a part of the market) in increasing numbers. The Shoreline area will also bring an increase in new construction, but, as the market moves northward, it obviously creates more buyers and competition.”

PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


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

2016 ANNUAL MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price (Nearest $000) $400,400

North Sound Area

$449,500

Anacortes Bellingham

$395,400 $563,900

Edmonds

$362,200

Everett Lynnwood

$433,700 $320,500

Marysville 3-County Area Condos

$260,400 $590,600

3-County Area Waterfront (SF Only)

$1,340,600

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

$0k

$300k

$600k

$900k

$1200k

Number of Sales Closed

2000 1557

Total North Sound Sales Closed

1317

1000 962

776

500

234

495

35

6949

1982

1842

1500

0

$1500k

97

Anacortes

Bellingham

Edmonds

Everett

Lynnwood

Marysville

3-County Area Condos

3-County Area Waterfront (SF Only)

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

62

48

26

28

25

33

28

86

83

112

45

65

-5.9%

-33.8%

Average Days on Market Current Inventory in Units

Total North Sound Area

579

81

158

-22.9%

-25.7%

-31.9%

56

128

35

-25.1%

-51.4%

121 7.1%

3.7%

30%

Change from 2015

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PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


PUGET SOUND AREA COUNTIES

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PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


PUGET SOUND AREA COUNTIES Island King Kitsap Pierce Skagit Snohomish Whatcom

2016 ANNUAL MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price (Nearest $000) $317,400

Island King

$654,400 $326,200

Kitsap Pierce

$295,000

Skagit

$300,400

Snohomish

$391,900 $306,400

Whatcom

$0K

$100K

$200K

$300K

$400K

$500K

$600K

$700K

$800K

Number of Sales Closed

30000 25000

27666

20000 15000

17261

10000 5000 0

5400

2335

15664

4530

2655

Island

King

Kitsap

Pierce

Skagit

Snohomish

Whatcom

93

28

61

54

96

37

97

Average Days on Market Current Inventory in Units 844

1776

-7.4%

-6.5%

1310

2792

823

1643

1360

-18.2%

-17.2%

-22.8%

-18.6%

0.2% Change from 2015

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PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


SOUTHWEST WASHINGTON

“The current market in Clark County, remains strong as compared to 2016,” said Pam Saunders, principal managing broker of CB Seal’s Vancouver West office. “New construction will stay steady along with existing home sales. Homes will need to be priced right to move. The price range that saw the most activity was $250,000 to $400,000. Consumers continue to be well educated on prices, so if sellers overprice their homes the days on the market are considerably longer. Market activity increased in 2016 compared to 2015. Closed sales were up 5.8%, pending sales up 3.3%, and new listings were up 3%.”

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PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


SOUTHWEST WASHINGTON East Clark County North Clark County West Clark County

2016 ANNUAL MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price East Clark County

$349,600

North Clark County

$360,300

West Clark County

(Nearest $000)

$328,700

$198,500

Area Condos

$1,790,300

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

$0K

$500K

$1000K

$1500K

$2000K

Number of Sales Closed

5000 4000 3000

4186

2000 2019

1000 0

1305

437

55

East Clark County

North Clark County

West Clark County

Area Condos

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

38

46

37

32

116

45

79

Average Days on Market Current Inventory in Units 560

175

275

-9.7%

-23.9%

-1.4%

-13.2% 12.5%

Change from 2015

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PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


SOUTHWEST WASHINGTON COUNTIES Clark County Cowlitz County

2016 ANNUAL MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price (Nearest $000)

Clark County

$344,900

Cowlitz County

$212,100

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

$50K

$100K

$150K

$200K

$250K

$300K

$350K

Number of Sales Closed

7667

1344 Clark County

Cowlitz County

39

54

Average Days on Market Current Inventory in Units 1029

200

-9.2%

-25.4% Change over third quarter 2015

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PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


PORTLAND OREGON REGION

Portland, Oregon (Jan. 20, 2017) – Coldwell Banker Seal, a leading Northwest real estate market brokerage, released its annual market report providing a variety of statistics for the sale of homes in neighborhoods and counties in Oregon and southwest Washington. This annual report reflects activity between Jan. 1, 2016 and Dec. 31, 2016*. Said Brian Houston, principal managing broker of CB Seal’s Portland West office, “2016 ended with listings and closed sales a bit behind 2015’s numbers. Year-to-date summary activity was cooler in 2016 than in 2015. Comparing all of 2016 to 2015, new listings (41,121) increased 0.7%, closed sales (32,798) decreased 1.5% and pending sales (33,234) decreased 3.9%. We still have a low inventory

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and financed closings take more than 60 days due to the shortage of appraisers.” David Sly, principal managing broker for CB Seal’s Lake Oswego office said, “The Lake Oswego/West Linn markets continue to show pricing gains which are up 13.4% over 2015, help offset the decrease in pending sales, which are at -9.5%. The economic outlook for the region is strong moving into 2017; our state’s unemployment rate at 5.2%, hasn’t been this low since around 2008. Building permits are up over last year at around 20%. Oregon retains the No. 1 spot as ‘Top Moving Destination,’ according to the 39th Annual National Movers Study and Portland holds the #1 spot in Zillow’s fastest-appreciating housing markets. “

PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


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

2016 ANNUAL MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price (Nearest $000) $400,000

North Portland Northeast Portland

$435,500 $377,100

Southeast Portland West Portland | Raleigh Hills

$637,300 $715,800

Lake Oswego | West Linn Milwaukie | Gladstone | Happy Valley

$393,200

Beaverton | Aloha

$379,500

Portland Metro (Tri-County) Area Condos

$297,300

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

$1,481,300

$0K

$300K

$600K

$900K

$1200K

$1500K

Number of Sales Closed

3500 3447

3000 2500

3408

2504

2000

2339

1500

2157

1812

1000

1265

500

1049

0

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)

22

22

26

32

43

36

24

27

68

157

307

391

9.0%

23.3%

6.0%

670

Average Days on Market Current Inventory in Units 75

208

302

281

244

50.0%

14.9%

7.5%

20.6%

2.5%

286 -2.7%

Change from 2015

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PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


OREGON REGION COUNTIES Clackamas Multnomah Yamhill Washington

2016 ANNUAL MARKET REPORT

SINGLE FAMILY & CONDO

Average Sold Price

(Nearest $000)

Clackamas County

$454,500

Multnomah County

$427,900

$422,200

Washington County

$315,500

Yamhill County

$0K

$100K

$200K

8000

$500K

9891

6000

7626 6330 1529

2000 0

$400K

Number of Sales Closed

10000

4000

$300K

Clackamas County

Multnomah County

Washington County

Yamhill County

39

28

29

49

Average Days on Market Current Inventory in Units 895

985

743

327

7.8%

12.2%

18.9%

-6.3% Change over third quarter 2015

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PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016


PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2016

Information and statistics derived from the NWMLS and RMLS. Statistics not compiled or published by the Northwest Multiple Listing Service nor the Regional Multiple Listing Service.

Profile for VDB | Compass

2016 Year End PNW Market Review  

Our region has enjoyed some of the fastest employment growth in the U.S. over the past three years – and among the lowest new construction s...

2016 Year End PNW Market Review  

Our region has enjoyed some of the fastest employment growth in the U.S. over the past three years – and among the lowest new construction s...