PACIFIC NORTHWEST ANNUAL MARKET REPORT PORTLAND OREGON SOUTHWEST WASHINGTON PUGET SOUND

Transcription

1 2017 PACIFIC NORTHWEST ANNUAL MARKET REPORT PORTLAND OREGON SOUTHWEST WASHINGTON PUGET SOUND

2 2017 ANNUAL MARKET REPORT A WORD FROM THE PRESIDENT ABOUT PORTLAND OREGON REGION SOUTHWEST WASHINGTON EASTSIDE SOUTH SOUND NORTH SOUND PUGET SOUND

3 A WORD FROM THE PRESIDENT 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! 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 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. 03 PACIFIC NORTHWEST ANNUAL MARKET REPORT

4 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 With 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: 04 PACIFIC NORTHWEST ANNUAL MARKET REPORT

5 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 PACIFIC NORTHWEST ANNUAL MARKET REPORT

6 PORTLAND OREGON REGION 2017 ANNUAL MARKET REPORT SINGLE FAMILY & CONDO Beaverton Aloha Lake Oswego West Linn Milwaukie Happy Valley North Portland Northeast Portland Southeast Portland West Portland Raleigh Hills 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 Average Sold Price (Nearest $000) $422,000 $471,000 $408,000 $670,000 $774,000 $428,000 $410,000 $323,000 Average Price Change Over Previous Year 5.8 % 8.3 % 8.2 % 5.2 % 7.8 % 8.9 % 8.2 % 1.9 % Portland Metro Area Luxury ($1+M SF+C) $1,494,000 $0K $300K $600K $900K $1200K $1500K 3.8 % North Portland 2436 Northeast Portland 3350 Southeast Portland Number of Sales Closed 1837 West Portland / Raleigh Hills 1250 Lake Oswego / West Linn 2278 Milwaukie / Gladstone / Happy Valley 2020 Beaverton / Aloha 3461 Portland Metro (Tri-County) Area Condos 667 Portland Metro Area Luxury ($1+M SF+C) Average Days on Market Current Inventory in Units % 12.5% 20.2% -11.5% 15.3% 4.9% 9.4% 45.3% 20.3% Change from PACIFIC NORTHWEST ANNUAL MARKET REPORT

7 OREGON REGION COUNTIES 2017 ANNUAL MARKET REPORT SINGLE FAMILY & CONDO Average Sold Price (Nearest $000) Clackamas Multnomah Yamhill Washington Average Price Change Over Previous Year Clackamas County $497, % Multnomah County $460, % Washington County $457, % Yamhill County $353, % $0K $100K $200K $300K $400K $500K Number of Sales Closed Clackamas County Multnomah County Washington County Yamhill County Average Days on Market Current Inventory in Units % 14.5% -7.8% -28.7% Change over third quarter PACIFIC NORTHWEST ANNUAL MARKET REPORT

8 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. 08 PACIFIC NORTHWEST ANNUAL MARKET REPORT

9 SOUTHWEST WASHINGTON East Clark County North Clark County West Clark County 2017 ANNUAL MARKET REPORT SINGLE FAMILY & CONDO East Clark County $387,000 Average Sold Price (Nearest $000) Average Price Change Over Previous Year 10.6 % North Clark County $405, % West Clark County $361, % Area Condos $496, % Area Luxury ($1+M SF+C) $1,439, % $0K $300K $600K $900K $1200K $1500K 5000 Number of Sales Closed East Clark County 1363 North Clark County 2317 West Clark County 496 Area Condos 64 Area Luxury ($1+M SF+C) Average Days on Market Current Inventory in Units % 33.3% -10.1% 66.7% 39.1% Change from PACIFIC NORTHWEST ANNUAL MARKET REPORT

10 SOUTHWEST WASHINGTON COUNTIES Clark County Cowlitz County 2017 ANNUAL MARKET REPORT SINGLE FAMILY & CONDO Average Sold Price (Nearest $000) Average Price Change Over Previous Year Clark County $383, % Cowlitz County $237, % $0K $50K $100K $150K $200K $250K $300K $350K $400K Clark County Number of Sales Closed 1536 Cowlitz County Average Days on Market Current Inventory in Units % Change over third quarter % 10 PACIFIC NORTHWEST ANNUAL MARKET REPORT

11 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. 11 PACIFIC NORTHWEST ANNUAL MARKET REPORT

12 BELLEVUE 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 singlefamily home price in the Eastside area surpassed $1 million for the year. This represented a 15% increase over 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 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 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 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. 12 PACIFIC NORTHWEST ANNUAL MARKET REPORT

13 EASTSIDE AREA 2017 ANNUAL MARKET REPORT SINGLE FAMILY & CONDO Bellevue Bothell Duvall/Carnation Kirkland Issaquah/Sammamish Mercer Island Redmond Woodinville Total Eastside Area Bellevue Bothell Duvall Carnation Kirkland Issaquah Sammamish Mercer Island Redmond Woodinville Area Condos Area Waterfront (SF Only) Area Luxury ($2+M SF + Condo) $647,000 $628,000 $492,000 Average Sold Price (Nearest $000) $1,017,000 $983,000 $977,000 $940,000 $872,000 $1,316,000 $1,884,000 $1,923,000 $3,107,000 $0k $500k $1000k $1500k $2000k $2500k $3000k $3500k Average Price Change Over Previous Year 15.3 % 20.0 % 18.3 % 17.6 % 13.8 % 13.2 % 14.7 % 15.5 % 14.6 % 21.2 % 21.9 % 5.5 % Bellevue 1874 Bothell 2276 Duvall Carnation 3147 Kirkland Number of Sales Closed 1889 Issaquah Sammamish Mercer Island Redmond 616 Woodinville 3038 Area Condos Only Area Waterfront (SF only) 8897 Total Eastside Sales Closed Area Luxury ($2+M SF+C) 28 Total Eastside Area Average Days on Market Current Inventory in Units % -4.8% -1.1% -9.4% -20.2% -27.5% -15.8% -24.5% -42.2% -20.0% -6.7% 10.1% Change from PACIFIC NORTHWEST ANNUAL MARKET REPORT

14 SEATTLE AREA John Deely, principal managing broker for CB Bain s Lake Union office, said, The Seattle market had its ups and downs in 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 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. 14 PACIFIC NORTHWEST ANNUAL MARKET REPORT

15 SEATTLE AREA 2017 ANNUAL MARKET REPORT SINGLE FAMILY & CONDO Ballard Green Lake Capitol Hill Madison Park Magnolia NE Seattle Seattle Central South Lake Union Queen Anne West Seattle Seattle Area 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) $497,000 $836,000 $812,000 $1,174,000 $1,057,000 $846,000 $807,000 Average Sold Price (Nearest $000) $921,000 $1,354,000 $1,127,000 $1,577,000 $2,723,000 Average Price Change Over Previous Year $0K $500K $1000K $1500K $2000K $2500K $3000K 11.4 % 14.4% 12.5 % 2.3 % 12.4 % 13.1 % 14.6 % 1.7 % 11.0 % 20.6 % 5.6 % 0.8 % Number of Sales Closed Total Seattle Sales Closed Ballard Green Lake 159 Capitol Hill 307 Madison Park 422 Magnolia 1057 NE Seattle 850 Seattle Central S. Lake Union Queen Anne West Seattle Area Condos Only 71 Area Waterfront (SF Only) 157 Area Luxury ($2+M SF+C) 17 Total Seattle Area Average Days on Market Current Inventory in Units % -62.5% -18.2% -14.3% -17.6% -21.7% -31.0% -45.2% -61.5% 8.0% 0.0% 21.1% Change from PACIFIC NORTHWEST ANNUAL MARKET REPORT

16 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 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 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. 16 PACIFIC NORTHWEST ANNUAL MARKET REPORT

17 SOUTH SOUND AREA 2017 ANNUAL MARKET REPORT SINGLE FAMILY & CONDO Gig Harbor Key Peninsula North Tacoma Lakewood University Place Puyallup Graham SE King County SW King County Bainbridge Island Silverdale South King, Pierce & Kitsap Areas Bainbridge Island Average Sold Price (Nearest $000) $422,000 $979,000 Average Price Change Over Previous Year 11.3 % 11.4% SIlverdale $368, % Gig Harbor/Key Peninsula North Tacoma University Place Lakewood Puyallup Graham SE King County SW King County $499,000 $358,000 $330,000 $451,000 $424, % 12.9 % 10.0 % 10.8 % 13.7 % So. King & Pierce County Condos So. King & Pierce County Waterfront (SF Only) So. King & Pierce County Luxury ($1+M SF+Condo) $249, % $849, % $1,394, % $0K $300K $600K $900K $1200K $1500K Bainbridge Island Number of Sales Closed Silverdale Gig Harbor / N. Tacoma / Puyallup / SE King County SW King County So. King / Key Peninsula University Place / Graham Pierce / Kitsap Co. Lakewood Condos South King Pierce Area Sales Closed So. King Pierce Kitsap Co. Waterfront (SF Only) So. King Pierce Kitsap Co. Luxury ($1+M SF+C) Total South King / Kitsap & Pierce Areas Average Days on Market Current Inventory in Units % -27.6% -18.9% -12.8% -6.2% -11.3% -27.9% -28.8% -50.2% -20.6% 4.9% Change from PACIFIC NORTHWEST ANNUAL MARKET REPORT

18 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 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 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. 18 PACIFIC NORTHWEST ANNUAL MARKET REPORT

19 NORTH SOUND AREA (Snohomish, Skagit & Whatcom Counties) 2017 ANNUAL MARKET REPORT SINGLE FAMILY & CONDO Anacortes Bellingham Edmonds Everett Lynnwood Marysville North Sound Area Anacortes Bellingham Edmonds Everett Lynnwood Marysville 3-County Area Condos 3-County Area Waterfront (SF Only) Average Sold Price (Nearest $000) $443,000 $469,000 $436,000 $655,000 $395,000 $497,000 $350,000 $307,000 $634,000 Average Price Change Over Previous Year 9.3 % 4.5 % 10.4 % 16.1 % 9.1 % 14.5 % 9.4 % 18.1 % 7.1 % 3-County Area Luxury ($1+M SF+C) $1,295, % $0K $300K $600K $900K $1200K $1500K 763 Number of Sales Closed Anacortes Bellingham Edmonds Everett Lynnwood Marysville 3-County Area Condos 7122 Total North Sound Sales Closed County Area Waterfront (SF Only) 3-County Area Luxury ($1+M SF+C) Total North Sound Area Average Days on Market Current Inventory in Units % 0.0% 16.5% -37.5% -42.2% -5.7% -47.1% 17.0% 6.7% -10.8% Change from PACIFIC NORTHWEST ANNUAL MARKET REPORT

20 PUGET SOUND AREA COUNTIES 20 PACIFIC NORTHWEST ANNUAL MARKET REPORT

21 PUGET SOUND AREA COUNTIES 2017 ANNUAL MARKET REPORT SINGLE FAMILY & CONDO Average Sold Price (Nearest $000) Island King Kitsap Pierce Skagit Snohomish Whatcom Average Price Change Over Previous Year Island $403, % King $746, % Kitsap Pierce Skagit Snohomish Whatcom $390,000 $343,000 $347,000 $477,000 $378,000 $0K $100K $200K $300K $400K $500K $600K $700K $800K 11.4 % 11.4 % 8.4 % 12.5 % 9.9 % Number of Sales Closed Island King Kitsap Pierce Skagit Snohomish Whatcom Average Days on Market Current Inventory in Units % -25.7% -38.2% -12.3% -10.6% -30.2% -9.6% 21 PACIFIC NORTHWEST ANNUAL MARKET REPORT

22 PACIFIC NORTHWEST ANNUAL MARKET REPORT *Information and statistics derived from the Regional Multiple Listing Service (RMLS) each quarter. Statistics not compiled or published by the Regional Multiple Listing Service. PACIFIC NORTHWEST ANNUAL MARKET REPORT