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TRANSCRIPT
2017
PA C I F I C N O R T H W E S T A N N U A L M A R K E T R E P O R T
PUGET SOUND
SOUTHWEST WASHINGTON
PORTLAND OREGON
2017 ANNUAL MARKET REPORT
A WORD FROM THE PRESIDENT
ABOUT
EASTSIDE
SOUTH SOUND
NORTH SOUND
PUGET SOUND
SOUTHWEST WASHINGTON
PORTLAND OREGONREGION
03
04
05
10
12
14
16
19
03 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
A WORD FROM THE PRESIDENT
The turn of the year provides opportunity to both reflect on the previous year and anticipate
what’s coming tomorrow. There’s no question 2017 was a year to be remembered, with
continued historic lows for inventory in the Seattle and Portland markets and relentless price
gains in most areas.
We are living in exciting and changing times. The booming economy and dramatic increase in
jobs will continue bringing new workers to the Pacific Northwest. This will result in sustained
low inventory and potentially even lower inventory in 2018. To put this in context, for every
one net new job created, the demand on the housing market increases approximately 1/2
housing unit. That means for every 100,000 new jobs created, the demand on housing
inventory supply increases by 50,000 units.
According to the Washington State Economic and Revenue Forecast Council, Washington
non-farm payroll employment is expected to increase by 2.4 percent over the same
projections last year, due in part to the recently passed Federal Tax Cuts and Jobs Act. The
projections suggest that more than 100,000 new jobs will be created in 2018 than were
expected in 2017, which translates to the same familiar story; low housing inventory.
In summary, 2018 will continue to see price gains that will likely continue for several more
years. Positive returns for homeowners and real estate investors expected this year and
beyond creates a promising environment to buy real estate!
– Mike Grady, President & C.O.O.
“In summary, 2018 will continue to see price gains that will likely continue for several more years. Positive returns for homeowners and real estate investors expected this year and beyond creates a promising environment to buy real estate!”
04 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
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 2017, ranking as a No. 1 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, 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
05 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
2017 ANNUAL MARKET REPORT
BELLEVUE, WA (Jan. 19, 2018) – Coldwell Banker Bain, a leading Pacific Northwest real estate brokerage, releases its 2017 annual 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 annual report reflects activity between Jan. 1, 2017 and Dec. 31, 2017*.
Reflecting on the annual numbers and feedback from brokers, Mike Grady, CB Bain president and COO, pointed out,
“There is no expected end in sight in 2018 for buyers or sellers experiencing a tough market – inventories are expected to lag well behind the number of buyers, and as a result home prices can be expected to continue rising.
The biggest question seems to be related to rising interest rates and the impact of the Trump administration’s recent tax plan on the housing market. Both issues could provoke more sellers to go to market, and that would be a nice result for buyers.”
06 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
“Eastside real estate turned in a stunning performance in 2017,” said Thadine Bak, principal managing broker of the CB Bain of Bellevue office. “The average single-family home price – in the Eastside area – surpassed $1 million for the year. This represented a 15% increase over 2016. Because supply never matched buyer demand, Eastside unit sales were flat for the year (8897 homes sold versus 8878 in 2016). But the competition this created among buyers led to the average sold price coming in at 1.7% over asking price. Homes also sold 14% faster in 2017. Buyers remained frenzied right up to the year’s end; our Bellevue office had one of the strongest Decembers on record and our brokers were writing and receiving offers through the
holidays. Given the strength of the Eastside’s employment sector and the quality of its school districts, we expect these trends to continue in 2018.”
Pat Grady, principal managing broker of CB Bain of Duvall, said, “Our office, serving the Snoqualmie Valley and all Eastside areas, experienced a continued shortage of inventory in all price ranges, and multiple offers on many new listings. Sale prices were driven up substantially, as was typical in all King County residential sales. 2018 is looking to be very similar to the 2017 market, so buyers should be sure to look every day for the newest listings, and be fully prepared to make their best offer.”
BELLEVUE
07 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
21 21 32 18 26 45 19 25 21 68 69
60 89 115 152 83 31 32 37 74 126
28
495
0
500
1000
1500
2000
2500
3000
3500
$0k $500k $1000k $1500k $2000k $2500k $3000k $3500k
EASTSIDE AREA
Average Sold Price (Nearest $000)
Bellevue
Bothell
Duvall | Carnation
Kirkland
Issaquah | Sammamish
Mercer Island
Redmond
Woodinville
Area Condos
Area Waterfront (SF Only)
Area Luxury ($2+M | SF + Condo)
Total Eastside Area
2017 ANNUAL MARKET REPORT
SINGLE FAMILY & CONDO
$1,316,000
$647,000
$628,000
$983,000
$977,000
$1,884,000
$940,000
$872,000
$492,000
$1,923,000
$3,107,000
$1,017,000
BellevueBothell
Duvall/CarnationKirkland
Issaquah/SammamishMercer Island
RedmondWoodinville
1427
1874
2276
3147
1889
351 1034616
3038
382 565
Area Waterfront(SF only)
Area Luxury ($2+M | SF+C)
Area Condos Only
WoodinvilleRedmondMercer IslandIssaquah |Sammamish
KirklandDuvall | Carnation
BothellBellevue
Average Days on Market
64
Current Inventory in Units
-4.8% -9.4% -42.2% -20.0% -6.7%
Change from 2016
Total Eastside
Area
-20.2%10.1%
Total Eastside Sales Closed
8897
Number of Sales Closed
Average Price Change Over Previous Year
15.3 %
20.0 %
13.2 %
21.2 %
18.3 %
14.7 %
21.9 %
17.6 %
15.5 %
5.5 %
13.8 %
14.6 %
-24.5%-15.8%-27.5%-1.1%-16.1%
08 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
SEATTLE AREA
John Deely, principal managing broker for CB Bain’s Lake Union office, said, “The Seattle market had its ups and downs in 2017. Prices were up and inventory down. The selected Seattle areas combined had a decrease of 31% in inventory and an 11.4 % increase in the average price from 2016. The largest increase in average price was 14.4% in the Ballard/Greenlake area with that same area also showing the largest decrease
of 62.5% in inventory. There is a direct correlation to the lack of inventory and price increases. We expect 2018 to follow 2016 and 2017 with continued high demand and increases in average sales prices. The only caveat is a predicted increase in interest rates which could cause more sellers to move to place their properties on the market and slightly cool the overheated Seattle market.”
09 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
$0K $500K $1000K $1500K $2000K $2500K $3000K
12 30 25 20 15 20 23 22 16 49 6017
12 9 12 14 18 29 27 10 40 17 46140
0
500
1000
1500
2000
SEATTLE AREA
Ballard | Green LakeCapitol Hill
Madison ParkMagnolia
NE SeattleSeattle Central
South Lake Union | Queen AnneWest Seattle
$836,000
$1,174,000
$1,354,000
$1,057,000
$812,000
$846,000
$1,127,000
$807,000
$497,000
$1,577,000
$2,723,000
Average Sold Price (Nearest $000)
Ballard | Green Lake
Capitol Hill
Madison Park
Magnolia
NE Seattle
Seattle Central
So. Lake Union | Queen Anne
West Seattle
Area Condos
Area Waterfront (SF Only)
Area Luxury ($2+M | SF + Condo)
$921,000Seattle Area
2017 ANNUAL MARKET REPORT
SINGLE FAMILY & CONDO
Number of Sales Closed
1653
159307
422
1057850
392 408
1942
71 157
Area Waterfront(SF Only)
Area Luxury ($2+M | SF+C)
Area Condos Only
West SeattleS. Lake Union |Queen Anne
Seattle CentralNE SeattleMagnoliaMadison ParkCapitol HillBallard | Green Lake
Total Seattle Sales Closed
5538
Average Days on MarketCurrent Inventory in Units
Total SeattleArea
Change from 2016
-62.5% -18.2% -14.3% -17.6%-31.0% -21.7% -31.0% -61.5%-45.2%8.0% 0.0% 21.1%
Average Price Change Over Previous Year
11.4 %
14.4%
13.1 %
20.6 %
12.5 %
14.6 %
5.6 %
2.3 %
1.7 %
–0.8 %
12.4 %
11.0 %
10 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
SOUTH SOUND AREA
Stephanie Callen, a leading broker in the CB Bain of Puyallup office, said, “In Pierce County, residential and condo sellers have ruled the market again in 2017. With our neighbors to the north coming into Tacoma and Gig Harbor to avoid high taxes, high housing prices and congestion, it has really put a strain on the inventory. Buyers are having to compete for homes and the usual closing costs help from sellers on VA loans is not a given to VA buyers anymore. With the price of homes up over 11% in Pierce County last year and the inventory down over 12%, homes prices are still moving upward. New construction home values are increasing as well. Despite all this, Sunset Magazine says the ‘City of Destiny’s time has finally come’ and Tacoma is now the best place to live in the Northwest!”
Matt Makowicz, principal manager broker of CB Bain of Bainbridge Island, said, “Bainbridge Island, as a neighborhood of Seattle, continues
to experience demand that exceeds supply. The lack of available inventory is expected to continue throughout 2018 despite an 18% increase in single-family homes sold in 2018 as compared with 2017. Average days on market was 49 for single-family homes and increased to 88 for new construction homes, suggesting that buyers preferred existing homes over new construction in 2017 as their first choice.
Similar to communities with excellent school systems on the Eastside of Seattle, Bainbridge Island is a competitive seller’s market. The island stands out, however, in that homes that seem to be priced above market value often do not sell without price reductions and sellers with multiple offer situations have fewer offers to review. Buyers in 2018 are expected to continue to select Bainbridge Island for its excellent schools, reliable 35 minute ferry commute to Seattle and relative bargain prices comparative to Eastside communities.”
11 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
60
280
44
30
49
42
32
242
30
351
30
264
30
121
80
123
90
150
34
298
34
1507
010002000300040005000600070008000
$0K $300K $600K $900K $1200K $1500K
SOUTH SOUND AREA
Gig Harbor/Key Peninsula
North Tacoma | University Place Lakewood
Puyallup | Graham
SE King County
SW King County
So. King & Pierce County Condos
So. King & Pierce County Waterfront (SF Only)
So. King & Pierce County Luxury ($1+M | SF+Condo)
$249,000
South King, Pierce & Kitsap Areas
$979,000
$422,000
Bainbridge Island
SIlverdale $368,000
$499,000
$849,000
$1,394,000
$358,000
$330,000
$451,000
$424,000
Gig Harbor | Key PeninsulaNorth Tacoma | Lakewood | University Place
Puyallup | GrahamSE King County
SW King CountyBainbridge Island
Silverdale
South King | Pierce Area Sales Closed
19231
Number of Sales Closed
Puyallup / Graham
N. Tacoma / University Place /
Lakewood
Gig Harbor / Key Peninsula
SE King CountyBainbridge 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)
SW King County
Average Days on MarketCurrent Inventory in Units
Total South King /
Kitsap & PierceAreas
Change from 2016
457 324 1637
31053728 3905
2868585 411
6075
-12.8% -6.2% -27.9% -50.2% -20.6%4.9%
-11.3% -28.8%-18.9%-27.6%-22.3%
2017 ANNUAL MARKET REPORT
SINGLE FAMILY & CONDO
Average Sold Price (Nearest $000) Average Price Change Over Previous Year
11.3 %
11.4%
10.0 %
16.0 %
0.2 %
8.4 %
10.8 %
7.3 %
13.7 %
12.9 %
12.7 %
12 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
NORTH SOUND AREA (Snohomish, Skagit, Whatcom)
Dean Ulrich, CB Bain of Bellingham’s principal managing broker, said, “The statistics show our market’s average sale price continued to climb in 2017, increasing 10.4% to $436,000 in Bellingham. Whatcom County as a whole increased 9.9% to $378,000 when comparing 2017 to 2016. Bellingham had 2071 closed sales, a 4.7% decrease due to low inventory, and Whatcom County had a total number of 4400 sales, a 0.3 % to break even for that number.”
John Speer, principal managing broker of CB Bain of Everett said, “The average sales prices for single family homes, including condos, in Snohomish County increased significantly in 2017, while the inventory levels of both new and resale homes on the market continued to shrink during the year. The cities of Edmonds, Lynnwood and Bothell in south Snohomish County saw price increases of 15% or more. Lower inventory levels were particularly acute in Everett, Marysville and Edmonds. The
strong sellers’ market posed huge challenges for buyers with lower price tolerances that required them to geographically extend their home search areas. Cash buyers and the most qualified financed buyers usually prevailed over the others in multiple offer situations. Both sellers and buyers relied heavily on knowledgeable and skilled real estate professionals to develop successful strategies and tactics to achieve success.”
Speer continued, “Large and small home builders have been very busy here too, but the new construction supply has not nearly kept pace with the growing demand. The low inventory and increasing home prices will likely persist during 2018. New construction home buyers are shifting their attention deeper into Snohomish County, including Stanwood and Granite Falls, where new construction presales are still relatively affordable and occasionally completed new homes are sometimes available.”
13 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
$0K $300K $600K $900K $1200K $1500K
0
500
1000
1500
2000
2500
18481 35 74 33 64 48 58471 131
3961 26 23 22 30 58 8130 22
NORTH SOUND AREA (Snohomish, Skagit & Whatcom Counties)
466
1502
10551283
2205
229 162763
2053
Change from 2016
AnacortesBellinghamEdmonds
EverettLynnwoodMarysville
2017 ANNUAL MARKET REPORT
SINGLE FAMILY & CONDO
Average Sold Price (Nearest $000)
Anacortes
Bellingham
Edmonds
Everett
Lynnwood
Marysville
3-County Area Condos
3-County Area Waterfront (SF Only)
3-County Area Luxury ($1+M | SF+C)
North Sound Area
Number of Sales Closed
Total North Sound Sales Closed
7122
BellinghamAnacortes Edmonds Everett Lynnwood Marysville 3-County Area Condos
3-County Area Waterfront (SF Only)
3-County Area Luxury
($1+M | SF+C)
Current Inventory in UnitsAverage Days on MarketTotal
North SoundArea
$436,000
$655,000
$350,000
$307,000
$634,000
$1,295,000
$497,000
$395,000
$469,000
$443,000
Average Price Change Over Previous Year
9.3 %
4.5 %
7.1 %
10.4 %
14.5 %
16.1 %
9.4 %
9.1 %
18.1 %
–3.4 %
16.5%0.0%-42.2%-37.5% -5.7% -47.1%
6.7%-18.7%
17.0%-10.8%
14 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
PUGET SOUND AREA COUNTIES
15 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
$0K $100K $200K $300K $400K $500K $600K $700K $800K
53
488
29
668
45
320
37
1513
40
412
25
1320
59
281
0
5000
10000
15000
20000
25000
30000
PUGET SOUND AREA COUNTIES
IslandKing
KitsapPierceSkagit
SnohomishWhatcom
2017 ANNUAL MARKET REPORT
SINGLE FAMILY & CONDO
Average Sold Price (Nearest $000)
$390,000
$343,000
$347,000
$378,000
$403,000
$746,000
Island
King
Pierce
Skagit
Snohomish
Whatcom
Kitsap
$477,000
1953
28203
4979
16473
2207327212563
WhatcomSnohomishSkagitPierceKitsapKingIsland
Number of Sales Closed
Average Price Change Over Previous Year
9.8 %
14.1 %
8.4 %
11.4 %
12.5 %
9.9 %
11.4 %
-9.6%-30.2%-10.6%-12.3%-38.2%-25.7%-19.5%
Average Days on MarketCurrent Inventory in Units
16 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
SOUTHWEST WASHINGTON
“2017 was a hectic year to say the least,” said David Knode, principal managing broker of the CB Bain of Vancouver East office and regional managing broker of CB Bain Washington. “The year ended down in closed sales and new listings by 1.2 % & 1.6% respectively. But we can’t let those numbers lull us into complacency, and there were multiple offers in all price brackets. The lament in our area is the pure lack of
inventory. This issue was due to sellers not having a move-up house if they sold their current one. Prices however are on the rise. In November we represented a seller who received seven very good competitive offers on a home listed over $500,000, and it sold significantly over the list price. Our location still has a huge number of people moving in for jobs.”
17 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
$0K $300K $600K $900K $1200K $1500K
105
64
35
75
37
286
42
244
37
521
0
1000
2000
3000
4000
5000
SOUTHWEST WASHINGTON
2017 ANNUAL MARKET REPORT
SINGLE FAMILY & CONDO
East Clark CountyNorth Clark CountyWest Clark County
Average Sold Price (Nearest $000)
Area Luxury ($1+M | SF+C)
Area Condos
West Clark County
North Clark County
East Clark County $387,000
$405,000
$361,000
$496,000
$1,439,000
Number of Sales Closed
Average Days on MarketCurrent Inventory in Units
Area Luxury ($1+M | SF+C)
Area CondosWest Clark CountyNorth Clark CountyEast Clark County
Change from 2016
4047
1363
2317496
64
–6.6 %
Average Price Change Over Previous Year
10.6 %
12.5 %
10.7 %
11.5 %
66.7% 39.1%-10.1%
33.3%-7.0%
18 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
010002000300040005000600070008000
37
1018
42
225
$0K $50K $100K $150K $200K $250K $300K $350K $400K
SOUTHWEST WASHINGTON COUNTIES
2017 ANNUAL MARKET REPORT
SINGLE FAMILY & CONDO
Clark CountyCowlitz County
Average Sold Price (Nearest $000)
Clark County $383,000
Cowlitz County $237,000
Number of Sales Closed
Clark County Cowlitz County
Average Days on MarketCurrent Inventory in Units
7559
1536
Average Price Change Over Previous Year
11.0 %
11.8 %
Change over third quarter 2016-1.1%
12.5%
19 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
PORTLAND OREGON REGION
Portland, Oregon (Jan. 19, 2017) – Coldwell Banker Bain, a leading Northwest real estate brokerage, releases its 2017 annual 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 third-quarter report reflects activity between Jan. 1, 2017 and Dec. 31, 2017*.
Reflecting on the annual numbers, David Sly, regional area manager for CB Bain and principal managing broker of its Lake Oswego and Portland Uptown offices, said, “There is no expected end in sight in 2018 for buyers or sellers experiencing a tough market – inventories are expected to lag well behind the number of buyers, and as a result home prices can be expected to continue rising. The biggest question seems to be related
to rising interest rates and the impact of the Trump administration’s recent tax plan on the housing market. Both issues could provoke more sellers to go to market, and that would be a nice result for buyers.”
Said Brian Houston, principal managing broker of the CB Bain of Portland West office, “In the three-county Portland Metro area, 2017 ended with new listings and closed sales a bit behind 2016’s numbers. Comparing all of 2017 to 2016, we are still experiencing low inventory and the average sales price for 2017 increased by 8.5%. The year ended with an increase of listings for December with a 13.8% increase over December 2016 even though closed sales in December were down 1.6% compared to December 2016.”
20 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
2017 ANNUAL MARKET REPORT
SINGLE FAMILY & CONDO
$0K $300K $600K $900K $1200K $1500K
324 256 313 379446139363234101
0
500
1000
1500
2000
2500
3000
3500
39 662926272724
PORTLAND OREGON REGION
Beaverton | AlohaLake Oswego | West LinnMilwaukie | Happy Valley
North PortlandNortheast PortlandSoutheast Portland
West Portland | Raleigh Hills
Average Sold Price (Nearest $000)
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)
$1,494,000
$323,000
$410,000
$428,000
$774,000
$670,000
$408,000
$471,000
$422,000
West Portland / Raleigh Hills
37
Lake Oswego /West Linn
46
Milwaukie / Gladstone / Happy Valley
Portland Metro Area Luxury
($1+M | SF+C)
Portland Metro (Tri-County) Area
Condos
Beaverton / Aloha
Southeast Portland
Northeast Portland
North Portland
1059
3350
1250
2278
667
Average Days on MarketCurrent Inventory in Units
3461
20201837
2436
Number of Sales Closed
Change from 2016
Average Price Change Over Previous Year
5.8 %
8.3 %
8.2 %
5.2 %
8.2 %
7.8 %
1.9 %
8.9 %
3.8 %
15.3% 4.9% 9.4% 20.3%45.3%20.2%12.5%34.7%-11.5%
21 PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
$0K $100K $200K $300K $400K $500K
0
2000
4000
6000
8000
10000
41 503130
920 2336851128
OREGON REGION COUNTIES
Average Sold Price (Nearest $000)
$353,000
$457,000
$460,000
$497,500Clackamas County
Multnomah County
Washington County
Yamhill County
6089
9637
7503
1542
Clackamas County Yamhill CountyWashington CountyMultnomah County
Change over third quarter 2016
Average Days on MarketCurrent Inventory in Units
ClackamasMultnomah
YamhillWashington
2017 ANNUAL MARKET REPORT
SINGLE FAMILY & CONDO
Number of Sales Closed
Average Price Change Over Previous Year
9.2 %
7.5 %
8.0 %
12.1 %
-7.8%14.5%2.8%
-28.7%
PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
PACIFIC NORTHWEST ANNUAL MARKET REPORT - 2017
*Information and statistics derived from the Regional Multiple Listing Service (RMLS) each quarter. Statistics not compiled or published by the Regional Multiple Listing Service.