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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

PORTLAND OREGON

SOUTHWEST WASHINGTON

PUGET SOUND

2017 ANNUAL MARKET REPORT

A WORD FROM THE PRESIDENT

ABOUT

PORTLAND OREGON REGION


EASTSIDE

SOUTH SOUND

NORTH SOUND

PUGET SOUND

03

04

05

08

11

16

18

20

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!”


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



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.”



SINGLE FAMILY & CONDO

$0K $300K $600K $900K $1200K $1500K

324 256 313 379446139363234101

0

500

1000

1500

2000

2500

3000

3500

39 662926272724


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%


$0K $100K $200K $300K $400K $500K

0

2000

4000

6000

8000

10000

41 503130

920 2336851128

OREGON REGION COUNTIES


$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


ClackamasMultnomah

YamhillWashington





9.2 %

7.5 %

8.0 %

12.1 %

-7.8%14.5%2.8%

-28.7%



“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.”


$0K $300K $600K $900K $1200K $1500K

105

64

35

75

37

286

42

244

37

521

0

1000

2000

3000

4000

5000




East Clark CountyNorth Clark CountyWest Clark County


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




Area CondosWest Clark CountyNorth Clark CountyEast Clark County

Change from 2016

4047

1363

2317496

64

–6.6 %


10.6 %

12.5 %

10.7 %

11.5 %

66.7% 39.1%-10.1%

33.3%-7.0%


010002000300040005000600070008000

37

1018

42

225

$0K $50K $100K $150K $200K $250K $300K $350K $400K

SOUTHWEST WASHINGTON COUNTIES



Clark CountyCowlitz County


Clark County $383,000

Cowlitz County $237,000


Clark County Cowlitz County


7559

1536


11.0 %

11.8 %

Change over third quarter 2016-1.1%

12.5%



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.”


“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


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


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



$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 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



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%


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.”


$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


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




1653

159307

422

1057850

392 408

1942

71 157

Area Waterfront(SF Only)


Area Condos Only

West SeattleS. Lake Union |Queen Anne

Seattle CentralNE SeattleMagnoliaMadison ParkCapitol HillBallard | Green Lake

Total Seattle Sales Closed

5538


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%


11.4 %

14.4%

13.1 %

20.6 %

12.5 %

14.6 %

5.6 %

2.3 %

1.7 %

–0.8 %

12.4 %

11.0 %


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.”


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


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


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%



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 %


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.”


$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




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


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


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%


PUGET SOUND AREA COUNTIES


$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




$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



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%


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.

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