Market Report: Puget Sound Real Estate Trends & 2015 Year in Review

In this review of 2015 market activity in the Puget Sound, we explore markets in seven key counties of Western Washington State: King, Pierce, Snohomish, Kitsap, Skagit, Jefferson and Island counties.

YEAR END REVIEW

M A R K E T R E P O R T

Realogics Sotheby's is a boutique real estate firm of 140+ brokers that consistently ranks among the top producing firms within the markets that it serves, with strategically placed branches in downtown Seattle, Bainbridge Island, Kirkland and Issaquah. Since commencing operations in 2010, RSIR has grown substantially as it is ranked among the top ten largest real estate brands in Puget Sound according to the Puget Sound Business Journal and NWMLS research.

TABLE OF CONTENT S

04 / / AT THE FOREFRONT //

05 / / EXECUTIVE SUMMARY //

07 / / REAL ESTATE DEMAND DRIVERS //

12 / / KEY TRENDS TO WATCH IN 2016 / /

14 / / AROUND THE PUGET SOUND //

06 / / ECONOMIC OUTPUT S //

16 / / ANNUAL COUNT Y REPORT S //

25 / / SELECTED COMMUNIT Y REPORT S //

58 / / OUR PHILOSOPHY //

60 / / INDEX //

61 / / REFERENCES //

AT THE FOREFRONT

Realogics Sotheby’s International Realty is proud to present this inaugural edition of the Puget Sound Real Estate Trends and 2015 Year in Review. In order to provide the necessary context, we have explored

macroeconomic trends and the primary demand drivers influencing our regional real estate market. We also dig deeper into the many micro markets that vary greatly from neighborhood to neighborhood.

Leading this effort is William Hillis, a newly appointed Research Editor and Publisher for our firm. As our service area has expanded so does our need to maintain real time data to inform our brokers and our valued clients alike.

As always, for the most current market information around the corner or around the world, I encourage you to reach out to one of our Global Real Estate Advisors by visiting www.RSIR.com.

Kind regards,

Dean JonesPresident & CEORealogics Sotheby's International Realty

4 / / AT THE FOREFRONT //

William Hillis was formerly an editor and researcher with two Big Four accounting firms spanning nearly a decade in Shanghai, China; and earlier in his career, with the Washington State Department of Transportation in Olympia. In China, he published newspaper articles, conference proceedings, thought leadership, and executive reports for multinational companies. Here in his home state of Washington, he edited official government publications and drafted reports to the Transportation Commission and the Washington State Legislature. Hillis joins Realogics Sotheby's International Realty as Research Editor and Publisher drawing upon his analytical mindset, experience as a licensed real estate broker and a global citizen.

The year 2015 witnessed white-hot real estate conditions throughout Puget Sound not seen since before the Great

Recession. A similar trajectory is expected in 2016: expanding demand, anemic supply and developers playing catch up to increasing homeownership levels.

According to the latest S&P/Case-Shiller’s Home Price Index Seattle led most competing cities, including New York, Boston, Dallas and Los Angeles on year-to-date home price. The average price of existing single-family homes in King, Snohomish and Pierce Counties in aggregate shows an index gain of 8.77 percent year-over-year in all areas reported by the Northwest Multiple Listings Service (NWMLS), with some localized price gains posting even higher.

Home prices in the broader region are now just 3.4 percent shy of the last cycle peak, recorded during the summer of 2007. The Seattle housing market recovered more than three times faster than the national average. A report by Zillow states that Seattle area homes are now worth a staggering $41 billion more than they were just one year ago.

With a supply and demand imbalance, prices are expected to continue their journey higher, despite more modest increases in forward-looking employment trends. Job growth may have peaked in 2015 at 54,000, or 3.5 percent annually but major employers are also urbanizing and housing demand follows. Many comparisons are being made between San Francisco and Seattle now that our “Silicon Forest” comprises 138,000 tech jobs and is the second fastest-growing in the U.S., according to the New York Times. This article further highlights the increased housing costs and mounting traffic challenges alluding to San Francisco as a harbinger of what’s to come for Seattle.

According to the Seattle Times, “Nowhere, though, has there been a more concerted effort to create a San Francisco-like tech scene with fewer downsides than in Seattle, the country’s second-biggest tech hub by some measures.”

Most relocating to the region will rent for a while, which has buoyed an unprecedented apartment boom. With nearly 50 percent rent growth in just five years, these new rental towers are incubating a bounty of future homebuyers.

Seattle rents are now the eighth highest in the country, averaging $1,922 per month across the region compared with the national average of $1,382. Buy vs. rent analysis (combined with tax benefits) will lure a growing number of Millennial consumers (the greatest demographic population in both the cities of Seattle and Bellevue) to explore ownership.

Not surprisingly, home values have eclipsed their prior cycle heights in those infill neighborhoods closest to the job centers of downtown Seattle and in Bellevue. While the number of closed sales in King County was 8.7 percent higher year-over-year, high-end sales were up 39.5 percent in King County, 58.3 percent in Seattle, and an even 30 percent on the Eastside. These rates are sharply higher even when comparing to the rapid growth of the preceding year.

In other news, the Seattle/Bellevue metro area experienced a rise in Asian investment, most notably from China as cash buyers seek financial safe harbor in the closest mainland port to Asia. This effect was especially felt on the affluent Eastside communities in and around West Bellevue, where RSIR brokers believe foreign nationals from China represented at least 40-percent of the market demand above $3 million. As a headwind, mortgage rates are due to rise, reducing affordability for some households, especially when coupled with increasing home values. Fortunately, income is forecast to grow from $75,000 to $85,000, or 17.5 percent, over the next five years.

Overall the greater Puget Sound region sustained its position as one of the most dynamic growth markets in the US during 2015, and 2016 appears to be serving up a repeat performance.

EXECUTIVE SUMMARY

William Hillis Research Editor and Publisher

/ / EXECUTIVE SUMMARY // 5

REAL ESTATE ACTIVITY

Prices of real estate throughout the Puget Sound catapulted higher in 2015, the

result of tight supply and an influx of new buyers.

According to the latest S&P/Case-Shiller Home Price Index, Seattle led most competing cities on home price increases during 2015, including New York, Boston, Dallas and Los Angeles. The latest reporting data (November 2015) for the average price of existing single-family homes in King, Snohomish and Pierce Counties in aggregate show the index has risen by 9.6 percent year-to-date. Meanwhile, the Northwest Multiple Listing Service (NWMLS) shows home prices accelerated to an 8.8 percent gain year-over-year in all reporting areas of Washington state, with some localized price gains even higher. Home prices in the

broader region are now just 3.4 percent shy of the last cycle peak, during the summer of 2007. In fact, the Seattle housing market recovered more than three times faster than the national average.

Although inventories had been tightening for the past three years, the region’s homebuilders were nonetheless unprepared for the surge of new buyers this year, having adjusted to conditions in the aftermath of the financial crisis by renting out properties and scaling back for-sale development plans. Incomes and increasing rates of homeownership in the region are expected to carry demand forward despite higher mortgage rates and reduced prospects for employment growth.

The Seattle housing market recovered more than three times faster than the national average.

Ye a r - t o - D a t eR i s i n g I n d e x F o r

S i n g l e F a m i l y

9.6%

N o v e m b e r 2 0 1 5 R i s i n g I n d e x F o r

S i n g l e F a m i l y

1.3%

EC ONOMIC INPUT S

6 / / ECONOMIC INPUT S //

The Puget Sound region has taken a different path from other boomtowns in North America whose economies are based

on resource extraction (e.g., oil), financial intermediation, or entertainment. Here, Seattle’s aerospace industry has gradually yielded its eminence to the service expansion and new product development cycles of the information tech industry—driven by leaders such as Amazon, Tableau, and F5 Networks—and their secondary employment effects on IT contractors, food & beverage businesses, and real estate developers.

Office space demand is back to pre-recessionary levels. This is being partially met, though not filled, by new projects in the pipeline. According to a report by commercial real estate broker Jones Lang LaSalle,1 in Seattle and Bellevue over the next two years, over 5.9 million square feet of office space is scheduled to open, but only 35.1 percent of the space has been preleased.

New office space is not inexpensive. The average asking rent is $48.50 per square foot per year, including expenses. That's a 42.7 percent premium over the average asking rate for all office space in the region.

Case-Shi l ler Indices Since 2000 | Cit y Compar i son

S e a t t l e

S a n F r a n c i s c o

L o s A n g e l e s

D a l l a s

B o s t o n

N e w Yo r k

P o r t l a n d

2 2 0

2 0 0

1 8 0

1 6 0

2 8 0

1 4 0

2 6 0

1 2 0

2 4 0

1 0 0

REAL ESTATE DEMAND DRIVERS

/ / REAL ESTATE DEMAND DRIVERS // 7

C ONTINUED | REAL ESTATE DEMAND DRIVERS

an average of $117,000 per year. The same report showed nearly 54,000 of the region’s workers in the architecture and engineering professions, including 8,460 aerospace engineers.5

These employment sectors, which have enabled the

Puget Sound region to compete with other U.S. industrial centers for domestic homebuyers, have proven resilient in past recessions. They may need to prove that resilience again soon. Complicating the picture for households are the effects of tighter home lending. Mortgage rates are due to rise, reducing affordability for some households when coupled with increasing home values. The current rate of homeownership is low. Single-family home prices increased 8.2 percent over the year, compared with an increase of 5.5 percent in the Case-Shiller 20-City Index.

Despite increasing prices, homeowner-ship is expected to increase in localized areas. Income growth is strong; Seattle median income is forecast to grow from

Even with all this space coming to the market, it still looks as though landlords are in the driver's seat, because companies are looking for a total of 8 million square feet — and the region's vacancy rate of 10.2 percent is the lowest seen since 2007. Job growth peaked in 2015 at 54,000, or 3.5 percent annually; slower growth is forecast, with the rate potentially declining to 1.6 percent in 2019. Federal employment statistics tell us that as of October 2015, the industrial centers of King, Pierce, and Snohomish Counties comprising the Seattle MSA were off their lows of July, when the region had recovered to pre-recession unemployment levels.2 A survey by employment consultants Robert Half announced late in the year that only 16 percent of Seattle high-tech employers planned further expansions in the first half of 2016, which implies reduced downstream growth prospects in the near-term.3 Still, unemployment rates in the Seattle area and King County currently remain respectively 0.3 and 0.7 percent lower than the national average, while Pierce County’s rate is nearly a full percentage point higher. The August 2015 rate for Kitsap County was equal to the U.S. average of 5.2 percent in that month.4 Among major occupational groups, business and finance tie at 7.5 percent with computer and mathematical jobs as the leading occupations in Seattle, Bellevue, and Everett. The latter employment category, however, pays nearly 32 percent more at the mean hourly rate, at which computing professionals in this region earn 25 percent more than their peers nationwide. In May 2014, the region’s 45,000 application software developers were reportedly earning

U n e m p l o y m e n t r a t e s i n t h e S e a t t l e a r e a a n d K i n g C o u n t y c u r r e n t l y r e m a i n r e s p e c t i v e l y 0 . 3 %

a n d 0 . 7 % l o w e r t h a n t h e n a t i o n a l a v e r a g e .

$75,000 to $85,000, or 17.5 percent, over the next five years. Seattle rents are now the eighth highest in the country, averaging $1,922 per month across the region compared with the national average of $1,382. Experts anticipate that new residents in increasing numbers will be prompted by rising rents to explore homeownership. Homes in most areas of the region continue to be more affordable than competitive markets in centers such as San Francisco and Los Angeles.

The current rush to buy is partly attributed to purchases made outside the historical home finance channel by new families and individuals cashing out equity, migrating into the area from other states and from overseas. According to state government statisticians, Washington State has not seen net outmigration since the recession of 1982, and the past three years have witnessed a pattern of growing in-migration from other states and abroad: 4.1 percent in 2013, 7.1 percent in 2014, and an estimated 8.2 percent in 2015.6 The state whose

CANADA HAS DROPPED OUT OF THE TOP FIVE NATIONS WHEN IT COMES TO INTEGRATING IMMIGRANTS, DUE TO POLICY CHANGES BY OTTAWA THAT RESTRICT FAMILY REUNIFICATION AND CITIZENSHIP.

-THE TORONTO STAR


The past three years have witnessed a pattern of growing in-migration.

Puget Sound in particular benefits from the state’s importance as a gateway to trade with Asia

residents have left for Washington in the greatest numbers is California, which year-to-date (November 2015) has seen an exodus of 37,319 residents to Washington State, a year-over-year change of 15.6 percent. This shift began before California’s droughts were widely covered in the news, and follows a similar 15.9 percent increase from 2013 to 2014, and a 7.7 percent increase from 2012 to 2013. Other states seeing consistently high out-migration to Washington have included Oregon and Texas.

Besides drawing new residents domestically from other U.S. states, Washington and the Puget Sound in particular also benefit from the state’s importance as a gateway to trade with Asia, as well as from international air travel to and from Sea-Tac International Airport. The Sound’s proximity to international communities across the broader region from Vancouver, British Columbia to Los Angeles and San Diego is also a factor, as is the superior quality of life in the Puget Sound region and its comparative affordability in

Student visas also serve as a bridge to citizenship for the next generation. Satya Nadella, CEO of Redmond’s Microsoft, first came to the U.S. from India as a student before naturalizing as a U.S. citizen. The numbers of naturalizations in our state are still small compared with California and New York, but have grown steadily in recent years.

Of course, Washington State and the Puget Sound region would not stand to benefit from overseas immigration without approved channels and destinations in place. As of the date of this report, Washington State was host to 49 of the 1,076 USCIS approved EB-5 Regional Centers for targeting immigrant investor funds. Washington is also home to a large number of private preparatory schools, colleges, and universities participating in the Student and Exchange Visitor Program (SEVP). Only these SEVP-certified

respect to those other markets. The global eminence that results from these features of our local economy has allowed Seattle and Bellevue to attract growing numbers of immigrants from overseas.

In 2011 and 2012, Asia surpassed Europe and the combined North America/ Caribbean region as a source of immigrants to the U.S.; and of the Asian origins of U.S. immigration, China is out in front. Immigration from China to the U.S. has steadily exceeded that from India, whether for permanent resident status or on non-immigration visas. In 2013, more than 391,000 Chinese nationals came to the U.S. on student visas, a number 276 percent greater than those issued to Indian nationals, and exceeding even the number of visas issued to temporary workers from India.

Alongside other immigration paths, such as the EB-5 investor visa program, study in the U.S. is preferred by many Chinese parents seeking to ensure their children’s post-secondary success.


C ONTINUED | REAL ESTATE DEMAND DRIVERS

schools can provide a student with an I-20 form required to obtain an F-1 student visa. There are 180 SEVP high schools in Washington State, 34 of them in Seattle. Those families with school-age children who have already converted to permanent residency or citizenship may enroll their children in one of the region’s many top-ranked public secondary schools. The Bellevue School District alone includes five of the state’s top high schools as ranked by U.S.News & World Report. Among them is fourth-ranked Newport High

School, whose student body is 45 percent ethnically Asian, with 32 percent of the total speaking a language other than English at home.

The University of Washington is currently ranked No. 15 by the Shanghai Ranking of World Universities—higher than any other West Coast university outside of certain institutions in the state of California, which is more distant from Asia and generally more expensive than Seattle. As a result, in 2014, 52.7 percent of the foreign students at the University of Washington were from China.7

FOR THE CHINESE THE REAL ESTATE AXIOM IS: "LOCATION, EDUCATION AND ENVIRONMENT"

2010 2011 2012 2013

12

,77

44

,05

6

12

,82

04

,49

7

12

,93

94

,58

5

13

,06

44

,52

5

RestofWASeattleMSA

P E R S O N S N A T U R A L I Z E D

A S R E S I D E N T S O F WA S H I N G T O N


CASH BUYERS ARE NOT JUST

A LUXURY MARKET STORY

While some buyers are cashing out more expensive homes in

California and other states, buyers from the People's Republic of China likewise are extracting value accumulated over generations under a government monopoly on land that has restricted private sales in their country of origin. The shared dynamic is one of cash-heavy purchases in the less expensive neighborhoods of Washington State, primarily those in the Puget Sound. This is not simply a luxury market story. Despite low interest rates, in times of tight real estate lending, cash buyers allow sellers to withdraw their own equity for down-market purchases and investments, causing transactions to cascade from one end of the residential value spectrum to the other.

SEVP Private Schools in the Puget Sound Region

10 JAN 2016

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

L a k e s i d e S c h o o l

T h e O v e r l a k e S c h o o l

A n n i e W r i g h t S c h o o l s

T h e B u s h S c h o o l

T h e B e a r C r e e k S c h o o l

T h e N o r t h w e s t S c h o o l

C h a r l e s W r i g h t A c a d e m y

U n i v e r s i t y P r e p

H o l y N a m e s A c a d e m y

We s t S o u n d A c a d e m y

S e a t t l e P r e p a r a t o r y S c h o o l

S p r i n g S t r e e t I n t ' l S c h o o l

F o r e s t R i d g e S c h o o l

S h o r e l i n e C h r i s t i a n S c h o o l

B e l l e v u e C h r i s t i a n S c h o o l

STUDENT AND EXCHANGE VISITOR PROGRAM


KEY TRENDS TO WATCH Most market pundits anticipate increasing housing demand and anemic inventories, which mean higher median home prices. While each submarket will respond differently to macroeconomic realities, we believe 2016 will see the following trends:

Increasing Homeownership Levels: The threat of rising interest rates, increasing median home prices and the

opportunity to benefit from income tax deductions as wages expand will entice more renters to seek ownership. We recognize most newcomers to the region will seek out rental housing until they stabilize in their new jobs, but several years of meteoric rent growth along with media reports that homeownership is getting further out of reach will further promote this transition. Meanwhile, exciting for-sale developments on the horizon will match increasing demand to purchase. Watch for new condominium tower announcements in 2016 in both downtown Seattle and downtown Bellevue as developers shift their thinking and build into a new cycle, while in-city home prices continue to increase by double digits.

More Demand from International Homebuyers and Developers: The Seattle/Bellevue metro area has

emerged as a global city and is deemed a relative bargain by foreign buyers compared with alternative West Coast gateways, mostly from China. While the media seems focused on the high-profile purchases on the Eastside near popular school districts, this trend is actually evident throughout the central Puget Sound region. This market segment prefers new construction and is active with presale condominiums, hence several notable developers (from China and Taiwan) have made significant land investments and are planning sizable mixed-use neighborhoods in downtown Seattle and downtown Bellevue.

Slowdown in Rent Growth and Rising Cap Rates on Apartments: The gold rush for apartment development will

slow down as a record number of new buildings are delivered in the Seattle area and competition leads to lease up concessions and greater price resistance on rents. Seattle has now become one of the top ten most expensive rental markets and there's an inversion taking place where it can actually be less expensive to own than lease as outlined by RSIR's #NoPlaceLikeOwn.com campaign. We believe there's been a premium paid for convenience in renting while new residents stabilize in their new job and their new city; but increasingly, renters will find ownership attractive. This, combined with a slower job growth forecast and higher land and construction costs, will likely cool down apartment building, meaning potentially less supply compared with what we've witnessed in the first half of this decade.

2016

Greater Competition for Affordable Housing: Expect more competitive bidding on single-family homes

priced below $700,000 in the neighborhoods surrounding the primary job centers as demand for homeownership increases. Now that median home prices are increasing on a sustained basis we expect more consumers vying for their slice of this bounty. This includes parents helping their children buy their first home leveraging gift money and new, lower down payment (5%) mortgages while for those earning moderate incomes the mortgage insurance is also tax deductible. Many are buying mid-century fixers in neighborhoods further and further away from the urban core in search of affordability. Meanwhile, higher density redevelopment and in-fill housing is a continuing trend as speculative developers are preferring to build townhomes, duplexes and cluster housing (i.e. cottages) that strive to balance new and affordable (albeit this scenario is typically occurring at price points above $700,000).

WHILE MANY OF THESE BUYERS CRAVE THE "AMERICAN DREAM" OF A SUBURBAN SINGLE-FAMILY RESIDENCE,

OTHERS WILL PREFER HIGH-RISE CONDOMINIUMS AND TRANSIT-ORIENTED DEVELOPMENT.

“The US Commerce Department projects that President Obama’s new visa policy which extends validity limits to 10 years for Chinese leisure and business visitors and 5 years for student travelers and significantly eases the visa application process could mean that as many as 7.5mn Chinese visitors will

come to the US by 2021,” three times as many as in 2013 (Forbes).

DID YOU KNOW? 15 FEBRUARY 2015

More Emphasis on Transportation Oriented Development: Given the lack of affordable housing

options near the urban core, developers and consumers are left to consider commuting corridors and emerging markets near light rail stops, park-and-ride lots and even the Washington State Ferry system. We have already seen redevelopment along existing Link light rail corridors in areas such as Rainier Valley and Columbia City, and developers are active along planned stops including 65th and Roosevelt. Future connections that will tie North Mercer Island to the Bel-Red Corridor on the Eastside are also going to be areas of growth as workers explore solutions to the increasing epidemic of commute times into the city center.

To stay current on all the trends affecting Puget Sound real estate, join our Passport Registry to receive newsletters and

periodic market reports www.rsir.com/contact-us

/ / KEY TRENDS TO WATCH IN 2016 / / 13

$400,000

$350,000

$300,000

$250,000

$200,000

$150,000

$100,000

$0

$50,000

SNOHOMISH

SKAGITPIERCE

NWMLSKING

ISLANDKITSAP

JEFFERSON

2013 2014 2015

AROUND THE PUGET SOUND

Within the past two years, the inventory of housing for sale in Western Washington State has completed a large bell-shaped curve, returning to degrees of shortage

not seen since the year 2005. The impact is most remarkable in the Greater Seattle area of King, Pierce, and Snohomish counties. This region of central Puget Sound has remained a seller’s market since January 2015, with inventories in most areas remaining below four months for nearly the entire year.

PUGET SOUND MEDIAN PRICES BY COUNTY, 2013-15

14 / / AROUND THE PUGET SOUND //

SNOHOMISH

9.8%

PIERCE

8.85%

KING

8.75%

KITSAP

7.92%

9.44%SKAGIT

8.77%NWMLS

8.11%ISLAND

4.05%JEFFERSON

2014-15 YEAR-OVER-YEAR GAIN IN MEDIAN PRICES BY COUNTY

This tri-county region is host to key employers in Western Washington, along with many of their customers and contractors. The areas where these employers are located enjoy the employment-related housing demand described in Section I that keeps inventories down and prices up. Areas of Kitsap County share this dynamic to a lesser degree due to the option of commuting by ferry.

Employment-related demand is far less keenly felt in counties further away from the largest employers, whose housing markets instead tend to rely on growth from retiring workers and owners of second homes. Therefore, areas of these markets, such as Skagit and Jefferson counties, see different trends in inventories and prices than those exhibited among the communities of central Puget Sound.

Other attractions to the seven counties that are subjects of this report include the region’s arts and entertainment venues, as well as the top schools throughout western Washington. All seven of these counties benefit from the region’s natural beauty and outdoor recreation opportunities, as well as its reputation of inclusiveness and hospitality to visitors and new residents from across the country and around the world.

/ / AROUND THE PUGET SOUND // 15

10FORTUNE 500 COMPANIESKING

C OUNT YANNUAL REPORT

HO

ME

TO A

LL T

EN O

F W

ASH

ING

TON

STA

TE’S

FO

RTU

NE

500

King County is by far the most populous county in the state, an estimated 143% larger than second-ranked

Pierce County on its southwest border. Washington State’s largest city, Seattle, and 16 of the 24 focused areas in Section III of this report are in King County. This county alone is credited with the largest plurality of state population growth within the past year: 38 percent (over 35,500) of new residents, with its neighbor Snohomish County to the north receiving the second-largest share of new growth, at 18 percent (16,600 newcomers).8 King and Snohomish counties, respectively, ranked third and fifth in the state by percentage growth.

King County is home to all ten of Washington State’s Fortune 500 companies, with five of them headquartered in Seattle: Amazon, Starbucks, Nordstrom, Expeditors

International, and Alaska Air Group. Many of Washington State’s top-rated schools are also located here, including most of the SEVP private schools listed on page 11 of this report.

The NWMLS classifies transactions of more than one million dollars as “high end sales,” and by far the greatest number of these sales occur in King County—specifically in Seattle and on the Eastside, where in 2015, more than 1,500 and 1,900 of these sales were closed, respectively. The number of these transactions has ballooned in recent years. In 2015, while the number of closed sales in King County generally were 8.7 percent higher year-over-year, high end sales was up 39.5 percent in King County, 53.8 percent in Seattle, and 30 percent on the Eastside. These rates are sharply higher even from the rapid growth of


1.4AVG. MONTHLY

SUPPLY OF HOMES

VIE

WS

OF

LAK

E W

ASH

ING

TON

BROKERS AT REALOGICS SOTHEBY'S INTERNATIONAL REALTY SAY THERE ARE "FAR MORE WOULD-BE BUYERS" THAT WOULD SELL THEIR EXISTING HOME, BUT FEAR NOT BEING ABLE TO FIND A SUITABLE REPLACEMENT.

third, with the remaining counties in the Puget Sound region in double digits or fewer.

Growth in King County has not been limited to the most affluent neighborhoods. From April 2010 to April 2015, homebuilders in King County added nearly 11,900 single-family residences (SFRs) and over 30,000 multifamily units to the county’s housing stock, for totals exceeding 506,000 in the first of these categories and 369,000 in the second (and five-year increases of 2.4 percent and 9.0 percent, respectively). Of the 809,000 occupied units, 42.5 percent were rented.9 The NWMLS reported over 78,500 active listings during the year, 39,531 of them new.

Only 10.7 percent of this county’s housing stock is built on unincorporated land, less than any of the other counties surveyed. Under the influence of growth management restrictions and increasing costs of construction, the

the preceding year (2013-14): 25.2 percent, 21.8 percent, and 26.4 percent, respectively. One reason for Seattle’s growth was the addition of new construction high-rise condominiums, the first of their kind in more than five years, adding exciting new inventory for residents to move up or move down to. According to brokers at Realogics Sotheby’s International Realty, there are “far more would-be buyers” that would sell their existing home, but fear not being able to find a suitable replacement, hence the actual demand for new housing is far greater than what is suggested by the 2015 statistics.

Among the counties, Snohomish was a distant second in the number of high end sales closed, with 160 such transactions (although this was a 95.1 percent year-over-year increase). Pierce County was

median price of newly-constructed homes in King County was $631,000, an increase of 11.0 percent over the 2014 median for new construction.

King County has been a strong seller’s market for a fourth consecutive year (since 2011).10 The average monthly supply11 of homes for sale remains lower than any other county served by the NWMLS, averaging 1.4 months in 2015, down from 1.9 months in both 2013 and 2014. The county’s combined SFR and condominium monthly sales volume peaked in June 2015 at $2.11 billion. The annual median price of all homes in King County was $435,000, a year-over-year increase of 8.75 percent. With the multi-year decline in the inventories of homes for sale, annual median prices of all homes were generally higher throughout the central Puget Sound: by 8.75 percent in King County, 8.85 percent in Pierce County, and 9.82 percent in Snohomish County.

PERGOLA IN HISTORIC PIONEER SQUARE

/ / ANNUAL COUNT Y REPORT S // 17

2013

2013

2066

815

4983

49 59

King–Seattle King–Eastside OtherKingCounty Snohomish

Pierce Kitsap

2014

2014

2587

993

7582 67 70


Pierce Kitsap

2015

2015

3598

1568

105160

114 94


Pierce Kitsap

2013

2013

2066

815

4983

49 59


Pierce Kitsap

2014

2014

2587

993

7582 67 70


Pierce Kitsap

2015

2015

3598

1568

105160

114 94


Pierce Kitsap

2013

2013

2066

815

4983

49 59


Pierce Kitsap

2014

2014

2587

993

7582 67 70


Pierce Kitsap

2015

2015

3598

1568

105160

114 94


Pierce Kitsap

2013

2013

2066

815

4983

49 59


Pierce Kitsap

2014

2014

2587

993

7582 67 70


Pierce Kitsap

2015

2015

3598

1568

105160

114 94


Pierce Kitsap

2013

2013

2066

815

4983

49 59


Pierce Kitsap

2014

2014

2587

993

7582 67 70


Pierce Kitsap

2015

2015

3598

1568

105160

114 94


Pierce Kitsap

PIERCE C OUNT Y

The state’s second most populous county, Pierce County is itself 11.5

percent more populated than third-ranking Snohomish County. Tacoma, the largest city in the county and third-largest in the state, is a major Pacific Rim container port. For international students, the city is also home to 11 SEVP private schools and 21 SEVP high schools.

In 2015, Pierce County was estimated to have received 8,820 new residents, indicating 1.07 percent growth year over year.12 Since 2010, the county has added more than 3,400 multifamily units, up by 4.25 percent, and 8,700 SFRs, an increase of 3.97 percent.13 About 43 percent of the county’s housing stock is built on unincorporated land. In 2015, the cities of Puyallup and Milton saw annexations of 0.228 and 0.141 square miles respectively.14

In 2015, Pierce County shifted from a balanced market to a seller’s market, with average monthly supply tightening to 2.7 from 3.6 in 2014 and 3.4 in 2013. The monthly median home price peaked in August 2015 at $252,500; and the annual median was $246,000, a year-over-year increase of 8.85 percent.

Of Pierce County’s many desirable communities, only Gig Harbor and Fox Island are covered in this report. Others not included are Spanaway, Bonney Lake, and Eatonville.

S A L E S O F " H I G H - E N D " H O M E S I N T H E C E N T R A L P U G E T S O U N D


Snohomish County’s median price in 2015 was nearly $335,000, a 9.83

percent increase over 2014 prices. Some of this growth has occurred naturally due to the quality of life in this county, which is midway between city amenities in Seattle and the natural wonders of the North Cascades. Another factor, however, is the pricing out of middle-class households from the gentrifying urban neighborhoods and suburbanizing rural areas of King County.

As mentioned before, Snohomish County saw 16,600 new residents in 2015, more than any county but King County. Yet on a percentage basis, Snohomish County grew at a faster rate than the state leader, by 2.24 percent to

annexation by the city of Arlington.17 The number of SFRs in the county since 2010 increased by 4.7 percent (nearly 9,000 units), while the number of multifamily units rose by 6.6 percent (nearly 5,000) over the same period.18

Specific areas in Snohomish County that we address in our survey of the region include Southwest Snohomish County (e.g., Brier, Lynnwood, Edmonds, and Woodway), Northeast Snohomish County (Lake Stevens), in addition to Everett and Mukilteo.

Snohomish County has been a seller's market for homes since 2012.

King County’s 1.76 percent.15 Like its more populous neighbor, Snohomish County has been a seller’s market for homes since 2012. This year, the supply tightened to 1.9 months from 2.6 in 2014 and 2.1 the year before. Monthly home sales volume topped half a billion dollars ($516 million) in June, with the median SFR and condo price peaking just short of $348,000 in the same month.

The greater amount of open space recently converted from farmland is contributing to the growth in Snohomish County. Just over 42 percent of the county’s housing stock is built on unincorporated land,16 similar to the proportion in Pierce and Skagit counties, and contrasting with the 10.7 percent in King County. Between 2010 and 2015, Snohomish County saw municipal annexations of 18 parcels, including nearly a half square-mile

SNOHOMISH COUNTY SAW

16,600 NEW RESIDENTS IN

2015, MORE THAN ANY

COUNTYBUT KING COUNTY.

Just over 42 % of the county’s housing stock is built on unincorporated land.

SNOHOMISH C OUNT Y


By a short ferry ride across Puget Sound, the Kitsap Peninsula and its adjacent islands offer waterfront homes;

stunning city, sound, and mountain views; and an easy getaway to bucolic scenes westward toward Hood Canal and the Olympic Peninsula. Areas in Kitsap County selected for community profiles include Bainbridge Island and Poulsbo. The former’s proximity to Seattle means that Bainbridge Island in particular enjoys the best of exurban and rural lifestyles: for some, a place of refreshment after the daily commute. For others, a weekend hideaway or reward for retirement. Kitsap County is also home to military families and contractors at the Puget Sound Naval Shipyard at Bremerton.

Like Pierce County, this year Kitsap County shifted from a balanced market to a seller’s market, with average monthly supply tightening to 2.7 from 4.1 in 2014 and 4.9 in 2013. The monthly median home price of all homes on the peninsula reached $285,000 in June 2015, and the annual median settled at $258,500, a 7.71 percent increase year-over-year. The county is sufficiently remote that new construction is more speculatively priced than that found in markets closer in. As a result, monthly median price changes for newly built homes in Kitsap County have seen more volatility over the past two years than new homes in the three counties of the Seattle MSA; nevertheless, the trend in 2015 was higher. New construction

peaked in November 2015 at $356,005, and the annual median was $318,100—12.4 percent higher than in 2014, the largest year-over-year increase in central Puget Sound.

At 0.9 percent year-over-year, population growth in Kitsap County was the second slowest among the seven counties surveyed, and 21st among Washington’s 39 counties.19 Nearly 71 percent of homes in Kitsap County are SFRs, compared with 56.7 percent in King County. Slightly less than two-thirds (65.2 percent) of the former’s housing stock is on unincorporated land.20 This is six times the proportion in King County, but not as much as in Island or Jefferson counties—markets that are beyond the reach of most commuters, but provide remote workers and retirees with a soulful refuge from the city.

These markets also provide insight on a commonly heard story of the last two years: the notorious bidding wars for real estate among buyers in western Washington. This was primarily a King County phenomenon—and within King County, it observably varied from one area to the next. Of the other six counties, only Snohomish saw significant amounts of such bidding. Markets further from Seattle were less likely to see bidding wars than seller price concessions as a result of their owners mispricing properties for sale.21

KIT SAPC OUNT Y

Snohomish-12.0%

County & Change in DOM

Skagit-19.0%

Pierce-7.7%

King-15.4%

Island-18.8%

Kitsap-18.7%

Jefferson-14.2%

120

110

100

90

80

70

60

50

40

30

20

10

0

SNO

HO

MIS

H

SKAG

IT

PIER

CE

KIN

G

ISLA

ND

KITS

AP

JEFF

ERSO

N

44 50 68 84 60 65 33 39 78 96 61 75 109

127

2015 2014

SKAGIT COUNTY SAW THE SECOND-HIGHEST PRICE GAINS YEAR-OVER-YEAR: 9.44 PERCENT, FOR AN ANNUAL MEDIAN

PRICE OF $255,000.

With Snohomish County in the lead, Skagit County saw the

second-highest price gains year-over-year: 9.44 percent, for an annual median price of $255,000. Of Skagit, Island, and Jefferson counties, Skagit is the most convenient as a commuter point of origin, as the other two counties require either the combination of a long drive with a ferry ride, or a very long drive without the ferry.

Skagit County, however, bears its own constraints to growth, which at least in the short run will sustain the value of current housing and approved development. The Skagit County Commission, various preservation groups, and other interested parties have acted aggressively to protect farmland and open space in the most arable regions of the Skagit Valley, driving new development south and east of Interstate 5, or west to Anacortes.

3.0 percent rate of growth, and only 79 new multifamily units—an increase of just one percent. Even for this exurban county, the comparative lack of new construction has caused the average monthly supply of homes to tighten to 3.7 months, the bottom edge of a balanced market. As a result, the median price of new construction rose in Skagit County almost as quickly as it did in Kitsap County: 12 percent year-over-year in 2015.

Fidalgo Island and Anacortes are among the areas more closely examined in the profile for Anacortes. Year-over-year, Skagit County’s population grew at a slightly greater percentage rate than in Kitsap County (0.94 percent to Kitsap’s 0.9 percent); but in the rural Skagit, this only comprised 1,120 new residents. Forty-three percent of housing units in Skagit County are located in unincorporated areas.22 From 2010 through 2015, builders in the county added 1,115 new SFRs, a

SKAGIT C OUNT Y

2015

2014

YEAR-OVER-YEAR CHANGES IN DAYS ON MARKET BEFORE SALE: BY COUNTY, 2014-15


Both Island and Jefferson counties are considerably more remote

than those previously discussed. Island County is just close enough to major employment centers in King County to allow travel to work by its most resilient commuters who are employed there.23

I SL AND C OUNT Y

Island County’s largest employer is the U.S. Navy, primarily at Naval Air Station Whidbey, north of Oak Harbor on Whidbey Island. This island is the fourth longest and fourth largest in the contiguous United States; Coupeville at its center is the county seat. Although two elementary schools are located on Camano Island, this second major island in the county is primarily a retirement haven and a vacation retreat. It is profiled later in this report.

There are no incorporated towns on Camano Island, and none but Langley south of Coupeville on Whidbey Island. Therefore, 72.3 percent of the county’s housing units are built on unincorporated land, more than any of the other six counties surveyed.24 Year over year, Island County’s 2015 population grew by just 0.75 percent; however, 85 percent of that growth was in the unincorporated areas to which Camano Island contributes substantially.25 From 2010 through 2015, the number of multifamily units in the county increased by 1.2 percent, and SFRs increased by 2.7 percent.

Despite this slow rate of new home construction, the average monthly supply in Island County is also approaching what are normally considered seller’s market levels, having tightened to 3.9 months in 2015 from 5.8 months last year, and 7.3 months just two years ago. The monthly median price of SFRs and condos here peaked at $307,500 in October and the county ended the year with an annual median price of $280,000, 8.11 percent higher than the median for 2014.


THE NUMBER OF SINGLE-FAMILY RESIDENCES, WHICH COMPRISE 75% OF THE COUNTY'S HOUSING STOCK, INCREASED BY JUST SHORT OF 3% FROM 2010 TO 2015.

PORT TOWNSEND AND ITS NEIGHBORING COMMUNITIES ENJOY THE GREATEST NUMBER OF DAYS OF SUN IN THE PACIFIC NORTHWEST —AND FOR BOAT OWNERS, ITS COASTAL VILLAGES ARE ONLY A 4 TO 7 HOUR CRUISE FROM THE RECREATION OF THE SAN JUAN ISLANDS.

JEFFERSON C OUNT Y

Banding the Olympic Peninsula from the Admiralty Inlet and Hood Canal

in the east to the Pacific Ocean in the west, Jefferson County stretches from the resort community of Port Ludlow and historic Port Townsend into the remote wilderness of the Olympic National Park. Port Ludlow is among the areas profiled in this report.

Although home to many small businesses, Jefferson County is highly dependent on tourism and second-home investment. In 2015, year-over-year population increased less than any other county surveyed—by only 0.59 percent—and was estimated to have suffered a natural decrease of more than 900 residents.26

Port Townsend is the only incorporated town in Jefferson County, and 74 percent of the county’s multifamily housing units are located there. The number of single family residences, which comprise 75 percent of the county’s housing stock, increased by just short of three percent from 2010 to 2015.27 At 6.4 months in inventory, the 2015 average supply has been balanced. Although higher than other subject counties, it is far more constrained than in 2014 at 9.5 months, and 2013 at 10.8 months. Both the annual median price and the year-over-year increase in Jefferson County were lower

than those reported for other counties: $269,500 and 3.85 percent, respectively. Buyers in these locations should not purchase with the intent to flip, and sellers here can especially benefit from professional staging and marketing of their properties for sale.

As eastern Jefferson County lies in the “Olympic rain shadow,” Port Townsend and its neighboring communities enjoy the greatest number of days of sun in the Pacific Northwest—and for boat owners, its coastal villages are only a four to

seven hour cruise from the recreation of the San Juan Islands. Brokers with Realogics Sotheby’s International Realty report a rise in interest of California homebuyers in these and other towns on the Olympic Peninsula. As second-home owners and retirees discover the combined benefits of low taxes, relative affordability and lifestyle attractions, this market is likely to make gains on its peers closer in.


24 / / COMMUNIT Y REPORT S //

The total wealth in North America grew to US $10,265 billion. The number of UHNW individuals increased 6.2% to 74,865.

Europe remains a significant region for UHNW individuals, growing to US $8,355 billion with 61,820 UHNW individuals.

In Asia, the total wealth increased by 5.8% to US $6,975 billion with a 4.8% expansion of UHNW individuals to total 46,635.

6.0% 8.9% 5.8%N O R T H A M E R I C A E U R O P E A S I A

6.2%

13.1%

5.5% 12.9%

6.0%

8.9%

ULTRA HIGH NET WORTH (UHNW) DEMAND FOR RESIDENTIAL PROPERT Y: GROWING FAST

30.2%19.0%

17.8%17.6%

15.5%13.5%13.4%

13.0%12.7%

12.4%12.2%

11.5%11.1%10.9%

10.6%10.4%10.1%

9.6%9.2%

8.8%8.2%

7.6%3.3%3.2%

2.1%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35

Belltown/DowntownPoulsbo

Burien/Normandy ParkBellevue West of I-405

Southeast SeattleBallard/Green Lake

Bainbridge IslandWest Seattle

Southwest SnohomishCamano Island

Queen Anne/MagnoliaKirkland/Bridle Trails

Central SeattleMercer IslandNorth Seattle

East of SammamishNortheast SnohomishBellevue East of I-405

Everett/MukilteoNWMLS

East Side SouthJuanita/Woodinville

AnacortesPort Ludlow

Redmond/Carnation

YOY Median Price Gain

/ / COMMUNIT Y REPORT S // 25

The aforementioned 8.77 percent gain in median home sale prices recorded for homes in regions covered by the

NWMLS was actually surpassed in many areas served by Realogics Sotheby’s International Realty (RSIR). In 19 of 29 areas studied, median prices were higher year-over-year than the overall figure reported.

In this section we describe some of the key draws for homebuyers and other features of each of these 29 areas, followed in each case by statistics from the 2015 home-buying year.

THE STATISTICS IN THIS SECTION

HAVE BEEN EXTRACTED

FROM THE NWMLS

DATABASE AND ANALYZED BY

RSIR. AS SUCH, THE NWMLS

REQUIRES NOTICE THAT

THEY ARE NOT COMPILED OR

PUBLISHED BY THE

NORTHWEST MULTIPLE

LISTING SERVICE.

YEAR-OVER-YEAR PRICE GAIN

SELECTED C OMMUNITIES IN PUGET SOUND ULTRA HIGH NET WORTH (UHNW) DEMAND FOR RESIDENTIAL PROPERT Y: GROWING FAST


BELLTOWN &D OWNTOWNSEAT TLE

STEA

DY

AN

D G

ROW

ING

SU

PPLY

OF

NEW

CO

ND

OM

INIU

MS

Belltown is named for William Nathaniel Bell, one of the original

settlers whose heavily forested land became downtown Seattle. The Belltown/Downtown area is where many Seattle landmarks like Pike Place Market and Smith Tower are found. Fortune 500 companies Nordstrom and Expeditors International are headquartered here. Among the many ongoing projects downtown, work began in June 2015 to lay the foundation for Weyerhaeuser’s new headquarters in Pioneer Square, to be opened in 2016; and the Pioneer Building on First Avenue has been purchased

for redevelopment as co-working space and suites for small businesses and entrepreneurs.28 The pioneers’ clapboard houses are long gone and virtually all recorded sales are now of mid-rise and high-rise condominiums in this vibrant, 21st century city. The year 2015 saw extraordinary shifts in demand relative to supply in this part of Seattle. After two years of a balanced market tending to favor sellers, in 2015 the inventory of homes for sale plunged from four months in January to less than two weeks in July, recovering to two-and-a-half months by October.

D o w n t o w n , S e a t t l e$ 1 , 6 8 0 , 0 0 0 U S D


DOWNTOWN SEATTLE ENDED WITH THE HIGHEST YEAR-OVER-YEAR PRICE GAINS OBSERVED—NEARLY NINE TIMES THE ADVANCE SEEN IN 2014. PRICES TURNED HIGHER IN THE WINTER, THEN SPIKED UPWARD IN THE LATE SUMMER...

Sale prices in Belltown and Downtown Seattle ended with the highest year-over-year price gains observed—nearly nine times the advance seen in 2014. Prices turned higher in the winter, then spiked upward in the late summer before ending 2015 just under $600,000.

Research from Realogics Sotheby’s International Realty published in June 2015 predicted the explosive median home price increases seen in this area given the new construction deliveries of luxury condominium towers, which explain the market value spike—presales had been incubating for several years before delivery of the south tower of Insignia. We expect a steady and growing supply of new condominiums in response to demand that will keep

the median price rising. Rents in new apartment buildings can range upwards of $4.00 monthly per square foot, and the buy vs. rent analysis suggests that headroom remains for further home price increases.

IN-CITYLIVING

0

1

2

3

Jan Mar May Jul Sep Nov

Queen Anne/Magnolia: Months In Inventory

2013 2014 2015

$534,500

$596,000

+4

.9%

+11

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015

Queen Anne/Magnolia Median Price Year-Over-Year

Median Price % Chg YOY

0

1

2

3

4

5


Belltown/Downtown Seattle: Months In Inventory

2013 2014 2015

$430,000

$561,000

+3.

4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015

Belltown/Downtown Median Price Year-Over-Year


0

1

2


Ballard/Green Lake: Months In Inventory

2013 2014 2015

$479,975

$545,000

+9

.3%

+13

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015

Ballard/Green Lake Median Price Year-Over-Year


0

1

2

3



2013 2014 2015

$534,500

$596,000

+4

.9%

+11

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$430,000

$561,000

+3.

4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

1

2



2013 2014 2015

$479,975

$545,000

+9

.3%

+13

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



D o w n t o w n , S e a t t l e$ 2 , 5 0 0 , 0 0 0 U S D


Central Seattle includes, among many others, the communities of Broadmoor, Capitol Hill,

Denny Blaine, Madrona, and Washington Park. The Washington Park Arboretum is one of the world-renown institutions in this area. Garfield High School, the state’s 12th ranked public high school is located here.29 There are over a dozen SEVP schools in this area, including the Northwest School just blocks from downtown, Seattle Preparatory School overlooking Portage Bay, Holy Names Academy in Stevens, and The Bush School on the north side of Harrison Ridge.30 Three of the nation’s leading hospitals are proximate—Virginia Mason, Harborview, and Swedish Medical Center—and Fred Hutchinson Cancer Research Center is at South Lake Union. Though not in this area, the Amazon campus is very close by.

Central Seattle has been a seller’s market since early 2013. In recent years, this market has established a pattern of loosening in January and late summer, then tightening through the fall and

spring, respectively. Months in inventory have been gradually trending downward, averaging 1.2 in 2015, 1.6 in 2014, and 1.9 in 2013.

In 2015, the median price of a home in Central Seattle exceeded that of King County by 26.4 percent. This is one of the areas discussed in which high end sales of homes are concentrated. Price volatility this year meant that although prices in this area were already considerably higher than the county median, the indexed monthly change for Central Seattle might have ended this two-year run with a proportional price gain similar to that of the county (8.77 percent), had it not been for a $121,000 pop up in December. In 2015, sellers benefited from competition among buyers, as this is one of the areas seeing substantially higher-than-list prices paid.

CENTR AL SEAT TLEOVERVIEW

W a s h i n g t o n P a r k , S e a t t l e$ 2 , 2 0 0 , 0 0 0 U S D

0

1

2

3

4

5

6


Bainbridge Island: Months In Inventory

2013 2014 2015

$542,500

$615,000

+10

.9% +

13.4

%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015

Bainbridge Island Median Price Year-Over-Year


0

1

2

3

4


Southeast Seattle: Months In Inventory

2013 2014 2015

$380,000

$438,750

+8

.0%

+15

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015

Southeast Seattle Median Price Year-Over-Year


0

1

2

3

4


Central Seattle: Months In Inventory

2013 2014 2015

$495,000

$550,000

+9

.0% +

11.1

%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015

Central Seattle Median Price Year-Over-Year


0

1

2

3

4

5

6



2013 2014 2015

$542,500

$615,000

+10

.9% +

13.4

%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3

4



2013 2014 2015

$380,000

$438,750 +

8.0

%

+15

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015



0

1

2

3

4



2013 2014 2015

$495,000

$550,000

+9

.0% +

11.1

%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015




The Queen Anne/Magnolia area of Seattle comprises these two areas as well as a western

portion of South Lake Union, near Amazon's campus. Magnolia is the site of Discovery Park and The Homes at Fort Lawton, a community of restored homes offered by Realogics Sotheby’s International Realty. This area includes The Center School, one of the top-rated public high schools in Washington.31 It also includes the Seattle waterfront northwest of Belltown, where F5 Networks’ headquarters are located.

Expedia.com’s forthcoming move from Bellevue to its new campus along the Interbay waterfront between Queen Anne and Magnolia is expected to ultimately employ 4,500. Many employees will likely seek to reduce commute times from the Eastside in favor of a Seattle address, helping yet again to drive more demand for housing close to the urban core. Queen Anne and Magnolia are especially desirable neighborhoods close to Amazon, one of Seattle’s

leading employers. So it should not come as a surprise that homes here have been in high demand, with the market supply scarcely exceeding six weeks in all of 2015. Days in inventory averaged 34 in 2015, 51 in 2014, and 57 in 2013.

Properties in the Queen Anne/Magnolia area maintained their premium over King County median sale prices during the past year, with an 11.5 percent year-over-year gain more than twice that of 2014. The 2015 median price was 37 percent higher than the countywide median. The more volatile price trend reflects the market size limitations and the unique qualities of properties for sale here. This area saw more competitive bidding within the past year, driving sale prices higher than the list price.

QUEEN ANNE / MAGNOLIA

Q u e e n A n n e , S e a t t l e$ 1 , 1 2 5 , 0 0 0 U S D

0

1

2

3



2013 2014 2015

$534,500

$596,000

+4

.9%

+11

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$430,000

$561,000

+3.

4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

1

2



2013 2014 2015

$479,975

$545,000

+9

.3%

+13

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

1

2

3



2013 2014 2015

$534,500

$596,000

+4

.9%

+11

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$430,000

$561,000

+3.

4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

1

2



2013 2014 2015

$479,975

$545,000

+9

.3%

+13

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015




CENTR AL WESTL AKE WASHINGTON

The central western shore of Lake Washington centers on the

communities of Madison Park and Denny-Blaine. This area combines sunrise views of the Cascade Mountains with quick access to all the amenities of downtown Seattle.

Madison Street was cleared by former Washington Territorial Judge John J. McGilvra directly from downtown Seattle out to his 320-acre homestead, the first on the shores of Lake Washington. Judge McGilvra originally set aside 21 acres of his estate for a park, and he and his associates built a cable car line along the road to draw people out from the city to what became Madison Park. Today, according to the Seattle Times, Madison Park’s beach is the domain of “hipsters, yoga moms, families, and overly tanned hippies.”

Most of the area was developed beginning in the 1920s and 1930s; there is a high concentration of homes built between 1940 and 1970. Construction costs here average $400 to $500 per square foot, with sale prices especially in neighborhoods south of Madison Street comparable with Laurelhurst to the north, Kirkland on the Eastside, First Hill in Seattle and Mercer Island. Madison Park competes with these rival enclaves as one of the top waterfront communities on Lake Washington. Adjacent to Madison Park are the

M a d i s o n P a r k , S e a t t l e$ 1 , 6 7 0 , 0 0 0 U S D

$1,200,000 $1,295,000

+15

.4%

+7.

9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

2014 2015

Central West Lake Washington Median Price Year-Over-Year


0

1

2

3

4

5


SW King Co/Browns Point: Months In Inventory

2013 2014 2015

$245,000

$273,975

+11

.4%

+11

.8%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015

SW King Co/Browns Point Median Price Year-Over-Year


0

1

2

3

4

5

6

7

8

9

10

11


Central West Lake Washington: Months In Inventory

2013 2014 2015

0

1

2

3

4

5


Southwest Lake Washington: Months In Inventory

2013 2014 2015

$565,000

$604,375

+20

.0%

+7.

0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$540,000

$550,000

$560,000

$570,000

$580,000

$590,000

$600,000

$610,000

2014 2015

Southwest Lake Washington Median Price Year-Over-Year


$1,200,000 $1,295,000

+15

.4%

+7.

9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$245,000

$273,975

+11

.4%

+11

.8%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10

11



2013 2014 2015

0

1

2

3

4

5



2013 2014 2015

$565,000

$604,375

+20

.0%

+7.

0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$540,000

$550,000

$560,000

$570,000

$580,000

$590,000

$600,000

$610,000

2014 2015




buyers may benefit by bearing this in mind, considering and comparing properties in all three communities when searching for the right home.

Similarly, Central West Lake Washington has been a seller’s market for most of the past two years, though more steadily so in Madison Park. There, the monthly inventory has haltingly declined to 2.1 in 2015, from 2.4 in 2014 and 3.7 in 2013. This is a shorter duration than in Denny-Blaine or Broadmoor, in whose smaller markets sales were more irregular. Most home-buyers in Central Seattle recognize the distinctive values of individual homes across this micro-market; they are not as likely to confine their search to one of these communities as they are to consider them together.

communities of Broadmoor to the west and Denny-Blaine along the lakeshore to the south. Broadmoor, a golf club and community, borders Washington Park, designed by the famous American architectural firm Olmsted Brothers. This neighborhood enjoys one of the highest median household incomes in Seattle, nearly $250,000.

Together with its eastward-facing lakefront views, Denny-Blaine shares with Madison Park connections to Seattle’s early settlers. Charles and Viretta Denny and partner Elbert Blaine purchased this land and designed a series of hillside parks complementing the local topography. Also like Madison Park, its development flowered in the 1920s and 1930s, with many affluent families of Seattle building fine homes here. This is evident in the comparatively high median sale prices of homes in this community.

Median prices across the Central West Lake Washington micro-market were well above one million dollars. Prices continued to rise year-over-year, although at a somewhat reduced rate from 2014.

Larger numbers of lower-priced sales kept median prices from advancing in each community when viewed separately. However, prices appeared to rise markedly among these communities when combined as a single market while appearing to decline or hold steady in those communities severally. This is a result of the way in which the median is computed when pooling the properties sold across all three communities and counting up: although these communities are somewhat distinct from each other, there are more than enough high-end homes among the three of them to draw the median price upward when they are looked at as a single market. Home-

MOST OF THE AREA WAS

DEVELOPED BEGINNING IN

THE 1920S AND 1930S; THERE

IS A HIGH CONCENTRATION OF HOMES BUILT

BETWEEN 1940 AND 1970.

Median prices across the Central West Lake Washington micro-market were well above one million dollars.


In recent years, the upscale transformation of William Ranking Ballard’s tract north of the

Salmon Bay Waterway has made Ballard/Green Lake a twin of North Seattle on the Lake Washington side, as these are currently highly similar markets.

In addition to the town of Ballard, this area includes the communities of Wallingford between Lake Union and Green Lake; Phinney Ridge west of Green Lake; and neighborhoods along the Puget Sound shore north of Ballard: Sunset Hill, North Beach, Blue Ridge, and Broadview north of Carkeek Park. The area offers the world-renowned, SEVP certified Lakeside Upper and Middle Schools attended by Bill Gates and Paul Allen, as well as U.S.News & World Report-ranked Ingraham High School, all in the Haller Lake neighborhood. Ballard High School in northeast Ballard is also highly ranked by U.S.News & World Report.32

The monthly supply of homes for sale in Ballard/Green Lake tightened severely over the past year.

Homes here have easy access to downtown and the area is highly regarded by young urban professionals. The duration of inventory shrank from 32 and 33 days in 2014 and 2013, respectively, to 21 days in 2015. The 2015 median sale price in Ballard was more that 25 percent above the King County average—and gained ground over the year, rising by double-digits from 2015 and at the sixth-fastest rate of the areas studied. Month-to-month over the year, prices paid for homes in Ballard averaged 3.8 percent higher than the listing price, proving this area to have been a very hot market, and with North Seattle, ground zero for competitive bidding among buyers in 2015.

BALLARD / FREMONTGREEN LAKE

B a l l a r d , S e a t t l e$ 8 2 5 , 0 0 0 U S D

0

1

2

3



2013 2014 2015

$534,500

$596,000

+4

.9%

+11

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$430,000

$561,000 +

3.4

%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

1

2



2013 2014 2015

$479,975

$545,000

+9

.3%

+13

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

1

2

3



2013 2014 2015

$534,500

$596,000

+4

.9%

+11

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$430,000

$561,000

+3.

4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

1

2



2013 2014 2015

$479,975

$545,000

+9

.3%

+13

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015




The West Seattle area of the city of Seattle includes the neighborhoods of Alki, Admiral,

North Admiral, Belvedere, Fauntleroy, and Gatewood. Local media reports in 2015 indicated that West Seattle, especially its northern and western neighborhoods, have been a preferred target for homebuyers moving from California’s Bay Area.33 Chief Sealth High School in West Seattle is ranked among the top public high schools in the state.34 Although the area has been a seller’s market for years, the monthly supply tightened markedly in 2015, bottoming at 19 days in June. The average monthly supply was 1.8, from 1.7 in 2014 and about a month the previous year.

Although price gains were generally lower than the trend in King County in 2014, that deficit began to be erased in January 2015, so that the median price of homes in West Seattle ended equal to the county median for the year: $435,000, with a gain of 13.0 percent from 2014. Similarly, while deviation from list prices followed the countywide pattern in 2014,

higher demand in 2015 resulted in competing bids on properties for sale.

WEST SEAT TLE

N o r t h A d m i r a l , S e a t t l e$ 1 , 8 2 5 , 0 0 0 U S D

0

1

2

3

4

5


Burien/Normandy Park: Months In Inventory

2013 2014 2015

$244,950

$287,000

+9

.8%

+17

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015

Burien/Normandy Park Median Price Year-Over-Year


0

1

2

3

4

5


West Seattle: Months In Inventory

2013 2014 2015

$385,000

$435,000

+6

.9%

+13

.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

+24.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015

West Seattle Median Price Year-Over-Year


0

1

2

3

4

5

6

7

8


Poulsbo: Months in inventory

2013 2014 2015

$274,900

$328,377

-0.4

%

+19

.5%

-4.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

+24.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015

Poulsbo Median Price Year-over-year


0

1

2

3

4

5



2013 2014 2015

$244,950

$287,000 +

9.8

%

+17

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$385,000

$435,000

+6

.9%

+13

.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

+24.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015



0

1

2

3

4

5

6

7

8



2013 2014 2015

$274,900

$328,377

-0.4

%

+19

.5%

-4.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

+24.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015




Between Interstate 5 and northern Lake Washington, North Seattle includes Ravenna,

Bryant and Hawthorne Hills; Laurelhurst northwest of Union Bay; Windermere and View Ridge, respectively, south and west of Sand Point; and Cedar Park along the western shore of Lake Washington.

Besides its proximity to the Lakeside School in neighboring Haller Lake west of I-5, North Seattle is home to Roosevelt High School on the west side of Ravenna and Nathan Hale High School beside Thornton Creek, both U.S.News & World Report-ranked.35 In addition, University Prep and the Seattle Waldorf School are both SEVP schools in North Seattle.36

North Seattle’s inventory trends over the past three years closely resemble those in Ballard/Green Lake, as the buyers attracted to these areas are highly similar. The supply in North Seattle was only slightly less tight than its neighbor to the west, with 24 days

in inventory in 2015, 32 in 2014, and 36 in 2013. The North Seattle median home price continued to rise in 2015 at the same strong 10.9 percent rate from the preceding year, gaining value more rapidly than King County at large. At 3.6 percent, the deviation in prices from list was actually lower here over the course of the year than in Ballard, despite a spike to 106.5 percent in April. In any case, prices paid in this area showed North Seattle to be one of the leading areas in King County for bidding wars in 2015.

NORTH SEAT TLE

V i e w R i d g e , S e a t t l e$ 1 , 9 9 5 , 0 0 0 U S D

$475,000

$527,000

+10

.9%

+10

.9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015

North Seattle Median Price Year-Over-Year

Median Price % Chg YOY0

1

2


North Seattle: Months In Inventory

2013 2014 2015

0

1

2

3

4


Southwest Snohomish County: Months In Inventory

2013 2014 2015

$330,000

$370,000

+8

.2%

+12

.1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2014 2015

Southwest Snohomish Median Price Year-Over-Year


0

1

2

3

4


Everett/Mukilteo: Months In Inventory

2013 2014 2015$300,000

$327,500

+9

.1%

+9

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015

Everett/Mukilteo Median Price Year-Over-Year


$475,000

$527,000

+10

.9%

+10

.9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



1

2



2013 2014 2015

0

1

2

3

4



2013 2014 2015

$330,000

$370,000

+8

.2%

+12

.1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2014 2015



0

1

2

3

4



2013 2014 2015$300,000

$327,500

+9

.1%

+9

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015




Southeast Seattle includes the neighborhoods of Mt. Baker, Seward Park, Leschi, Columbia City,

Lakewood, and Rainier Beach. This is an historic area of Seattle, and some of its oldest streets (e.g., Holgate, Lander, Wilson, Angeline, and Graham) are named for early settlers and denizens of the city. The area has been a seller’s market continuously for the past three years, and has not seen more than six weeks of homes in inventory for sale since February 2015. The average monthly supply was 1.2 months in 2015, down from 1.9 months in 2014, and two months in 2013. With occasional high and low divergence, the median home price in Southeast Seattle—$20,000 below the King County median last year—ends 2015 higher than the county median price. At a 15.5 percent year-over-year increase, this area places fifth among those profiled. Competition for homes here has been more than sufficiently intense to drive sale prices higher than list. The anomalous spike in November 2015 is partly explained by

three transactions involving bids adding triple digits to listed prices, including one for $285,000 over the asking price.

SOUTHEASTSEAT TLE

S e w a r d P a r k , S e a t t l e$ 3 , 6 0 0 , 0 0 0 U S D

0

1

2

3

4

5

6



2013 2014 2015

$542,500

$615,000

+10

.9% +

13.4

%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3

4



2013 2014 2015

$380,000

$438,750

+8

.0%

+15

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015



0

1

2

3

4



2013 2014 2015

$495,000

$550,000

+9

.0% +

11.1

%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

1

2

3

4

5

6



2013 2014 2015

$542,500

$615,000

+10

.9% +

13.4

%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3

4



2013 2014 2015

$380,000

$438,750

+8

.0%

+15

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015



0

1

2

3

4



2013 2014 2015

$495,000

$550,000

+9

.0% +

11.1

%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015




Mercer Island, a bedroom community of Seattle and the region, is generally regarded as part of

the Eastside despite its “206” area code. Its population is estimated to have grown by 3.4 percent from 2010 through 2015.37 Mercer Island High School is ranked among the top ten public high schools in the state by U.S.News & World Report.38 As an island surrounded by Lake Washington, the community faces some constraints on further development solutions, and new development within the past five years has involved trading a few single-family homes for new multifamily housing.39 A current moratorium on new subdivisions and a more stringent design review process for buildings in the downtown core are suggestive of a city rethinking its future in light of significant demand and growth. For now, SFRs still comprise 72.2 percent of the housing stock. This composition is likely to change in the years ahead as a new Link light rail line is planned across Mercer Island’s North End, promoting multifamily alternatives close to the metro lines.

Mercer Island has remained a strong seller’s market since March 2015 and for all but four months in the past two years. There was an average of two months in inventory in 2015, two-and-a-half in 2014, and three in 2013.

Mercer Island has long been a special community in the Puget Sound region. This is reflected in a median sale price in 2015 that was 152.9 percent higher than the median price in King County at large. As in the small shore-bound communities west of Bellevue, homes here are distinctive, leading to wide variation in prices from month to month and transaction to transaction.

MERCERISL AND

0

5

10

15

20

25


Port Ludlow: Months In Inventory

2013 2014 2015

$275,000 $283,750

+1.

9%

+3.

2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015

Port Ludlow Median Price Year-Over-Year


0

1

2

3


East Side South: Months In Inventory

2013 2014 2015

$577,600 $625,000

+15

.5%

+8

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015

East Side South Of I-90 Median Price Year-Over-Year


0

1

2

3

4

5


Mercer Island: Months In Inventory

2013 2014 2015

$991,750

$1,100,000

+9

.7%

+10

.9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2014 2015

Mercer Island Median Price Year-Over-Year


0

5

10

15

20

25



2013 2014 2015

$275,000 $283,750

+1.

9%

+3.

2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3



2013 2014 2015

$577,600 $625,000

+15

.5%

+8

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$991,750

$1,100,000

+9

.7%

+10

.9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2014 2015



M e r c e r I s l a n d , W a s h i n g t o n$ 4 , 4 9 8 , 0 0 0 U S D


Kirkland is an affluent community well-situated on the eastern shore of Lake Washington.

Google has a development office here. The local public International Community School was ranked second in the state and 30th in the nation in 2015;40 and other schools in Kirkland, including Eastside Preparatory School, are SEVP-certified.41 Kirkland grew substantially in 2011 by annexing the adjacent communities of Finn Hill, Juanita, and Kingsgate to absorb nearly seven square miles, 12,541 housing units, and about 32,000 new residents.42

Like other Eastside areas to its east and south, Kirkland/Bridle Trails has seen an unbroken seller’s market for the past three years. The duration of supply averaged 43 days in 2015, 57 days in 2014, and 56 days in 2013. Prices in this distinctive and evolving community have been volatile, but in 2015 the median was exactly 50 percent higher than the median sale price for King County at-large. The year-over-year rate of

increase has held steady at about 11 percent annually. Sales price deviation from list price, although irregular, has not strayed far from the seller’s asking price.

KIRKL AND /BRIDLE TR AILS

K i r k l a n d , W a s h i n g t o n$ 2 , 2 0 0 , 0 0 0 U S D

0

1

2

3

4


Redmond/Carnation: Months In Inventory

2013 2014 2015$548,513 $560,000

+8

.9%

+2.

1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015

Redmond/Carnation Median Price Year-Over-Year


0

1

2

3

4


Kirkland/Bridle Trails: Months In Inventory

2013 2014 2015

$587,700

$652,500

+10

.9%

+11

.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015

Kirkland/Bridle Trails Median Price Year-Over-Year


0

1

2

3


Juanita/Woodinville: Months In Inventory

2013 2014 2015$440,000

$474,900

+3.

8%

+7.

9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015

Juanita/Woodinville Median Price Year-Over-Year


0

1

2

3

4



2013 2014 2015$548,513 $560,000

+8

.9%

+2.

1%+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

1

2

3

4



2013 2014 2015

$587,700

$652,500

+10

.9%

+11

.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3



2013 2014 2015$440,000

$474,900

+3.

8%

+7.

9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015




The area including Juanita (now part of Kirkland), Woodinville, and Redmond north

of 116th Street reaches from the eastern shore of Lake Washington to the eastern edge of King County.43 In addition to the aforementioned towns, there are lakefront communities (Arrowhead and Holmes Point), golf communities (Bear Creek and Trilogy), and wine country estates (e.g., Hollywood Hill). Woodinville and Inglemoor High Schools in the Northshore School District are both rated top public high schools by U.S.News & World Report.

Juanita’s annexation to Kirkland in 2011 makes the latter the 13th largest city in Washington State today. Woodinville’s much smaller population of 11,240 grew by 2.8 percent from 2010 through 2015.72 Kirkland’s post-annexation housing stock is 56.3 percent SFRs, which comprise 60 percent of Woodinville’s housing mix.73 The monthly supply in this area has been consistently seller-favorable for the past three

years. The duration of inventory averaged 45 days in 2015, 61 days in 2014, and 49 days in 2013.

Over the past 24 months, the median sale price in Juanita/Woodinville has not advanced in pace with that of King County. Yet the local price did rise 7.9 percent from 2014 and remains 9.2 percent higher than the countywide median. The sales-to-list price trend indicates that deviation from prices offered in Juanita/Woodinville and those in the county at large varied only slightly and occasionally.

JUANITA /WO ODINVILLE

W o o d i n v i l l e , W a s h i n g t o n$ 1 , 1 5 0 , 0 0 0 U S D

0

1

2

3

4



2013 2014 2015$548,513 $560,000

+8

.9%

+2.

1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

1

2

3

4



2013 2014 2015

$587,700

$652,500

+10

.9%

+11

.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3



2013 2014 2015$440,000

$474,900

+3.

8%

+7.

9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015



0

1

2

3

4



2013 2014 2015$548,513 $560,000

+8

.9%

+2.

1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

1

2

3

4



2013 2014 2015

$587,700

$652,500 +

10.9

%

+11

.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3



2013 2014 2015$440,000

$474,900

+3.

8%

+7.

9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015




The Redmond/Carnation area famously includes the Microsoft campus, but also

remarkable communities such as Blakely Woods, Education Hill, Hunter’s Glen, and Redmond Ridge. The Bear Creek School and Overlake School, both SEVP private schools certified to admit foreign students, are just northeast of Redmond city limits.46

From 2010 through 2015, the population of Redmond is estimated to have grown by 9.3 percent.47 During these years, the proportion of SFRs to the total housing stock edged downward from 49.4 percent to 48.1 percent.48 The area has been a strong seller’s market for the past 24 months. Except for brief respites early each year, supply has trended steadily lower. The average duration of inventory was 45 days in 2015, 58 days in 2014, and 60 days in 2013.

Prices in the Redmond/Carnation area did not

advance as consistently as those in the rest of King County. In 2015, this area did not see the level or frequency of competitive bidding for properties that other areas in the county witnessed. Although the annual median sale price was 28.7 percent higher than the countywide median, the year-over-year increase was the slowest observed, at 2.1 percent.

REDMOND /CARNATION

R e d m o n d , W a s h i n g t o n$ 1 , 3 9 5 , 9 5 0 U S D

0

1

2

3

4



2013 2014 2015$548,513 $560,000

+8

.9%

+2.

1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

1

2

3

4



2013 2014 2015

$587,700

$652,500

+10

.9%

+11

.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3



2013 2014 2015$440,000

$474,900

+3.

8%

+7.

9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015



0

1

2

3

4



2013 2014 2015$548,513 $560,000

+8

.9%

+2.

1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

1

2

3

4



2013 2014 2015

$587,700

$652,500

+10

.9%

+11

.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3



2013 2014 2015$440,000

$474,900

+3.

8%

+7.

9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015




NWMLS Area 520 includes not only Bellevue, but also the affluent enclaves of Clyde

Hill and Medina, and the even more privileged neighborhoods of Yarrow Point and Hunts Point. Of these communities, only Medina grew meaningfully (by 4.2 percent) from 2010 through 2015. St. Thomas School, an SEVP private school, is located in Medina49 and Bellevue High School, ranked third in the state and 160th in the nation by U.S.News & World Report, is also located in this area.50 Fortune 500 company Expedia is currently headquartered downtown, though they plan to relocate to downtown Seattle.51

Collectively, and respecting localized idiosyncrasies in this distinctive market, this area’s monthly supply from 2013 through 2015 was on the bleeding edge between balance and conditions favoring sellers, loosening briefly in early 2015. Months in inventory averaged 3.3 in 2015, 2.9 in 2014, and 2.7 in 2013. This area comprises highly desirable neighborhoods of very limited size, and therefore atypically high

variability in prices among properties that are beyond compare. The 2015 median sale price here was 148.7 percent higher than the King County median. Even at these premium prices, West Bellevue witnessed the third highest year-over-year increase we have seen: 17.6 percent, building on last year’s 10.6 percent year-over-year gain. Pricing these properties can be a challenge due to their distinctiveness, so sellers may expect some deviation from the offered price. Of specific note, West Bellevue has been the primary target of overseas homebuyers, especially from China. Brokers at Realogics Sotheby's International Realty perceive that upwards of half of the luxury home sales in this region are now to this distinct consumer profile and will continue to influence housing prices.

WEST BELLEVUE

B e l l e v u e , W a s h i n g t o n$ 4 , 5 0 0 , 0 0 0 U S D

0

1

2

3

4

5

6

7


Bellevue West Of I-405: Months In Inventory

2013 2014 2015

$920,000

$1,080,000

+10

.6%

+17

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2014 2015

Bellevue West Of I-405 Median Price Year-Over-Year


0

1

2


Bellevue East Of I-405: Months In Inventory

2013 2014 2015

$493,444

$541,450

+8

.4%

+9

.7%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015

Bellevue East Of I-405 Median Price Year-Over-Year


0

0.5

1

1.5

2

2.5


East Of Lake Sammamish: Months In Inventory

2013 2014 2015

$533,600

$588,995

+6

.7%

+10

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$500,000

$510,000

$520,000

$530,000

$540,000

$550,000

$560,000

$570,000

$580,000

$590,000

$600,000

2014 2015

East Of Lake Sammamish Median Price Year-Over-Year


0

1

2

3

4

5

6

7



2013 2014 2015

$920,000

$1,080,000

+10

.6%

+17

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2014 2015



0

1

2



2013 2014 2015

$493,444

$541,450

+8

.4%

+9

.7%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

0.5

1

1.5

2

2.5



2013 2014 2015

$533,600

$588,995

+6

.7%

+10

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$500,000

$510,000

$520,000

$530,000

$540,000

$550,000

$560,000

$570,000

$580,000

$590,000

$600,000

2014 2015




With an estimated 2015 population of 135,000, Bellevue is the fifth most populous

city in Washington State. The city was No. 19 on Forbes' list of Best Cities for Millennials in 2015 (Seattle was No. 6).52 This area of Bellevue east of I-405 is home to Interlake and Sammamish High Schools, respectively rated sixth and ninth in the state by U.S.News & World Report.53 Demand here has been sufficient to drive inventories lower than all other areas on the Eastside. The monthly supply has averaged a slightly over one month: 32 days in 2015, 39 in 2014, and 27 in 2013.

The City of Bellevue and much of the greater Eastside are highly desirable to international homebuyers, especially Chinese. Such buyers are drawn by the access to excellent public and private schools, prospects for capital appreciation (as noted by recent rises in the market) and the area’s demographics: for example, the three neighborhoods in Woodridge east of I-405 range from 15.5 percent to 32.8 percent Asian.54

Since 2010, multifamily units in Bellevue have increased by 9.0 percent, while SFRs increased by 2.4 percent; but the latter still comprise 56.7 percent of the housing stock (This includes all areas of Bellevue, including those both west and east of I-405 and south of I-90).55 In 2015, East Bellevue’s median sale price was 24.5 percent above the median for King County as a whole; and the 9.7 percent year-over-year gain exceeded that of the county by a full percentage point as it had from 2013 to 2014. Meanwhile, all but the mid-autumn to early winter months of the past two years have seen competitive bidding for properties in this area.

BELLEVUE EAST OF I -405

B e l l e v u e , W a s h i n g t o n$ 9 9 7, 0 0 0 U S D

0

1

2

3

4

5

6

7



2013 2014 2015

$920,000

$1,080,000

+10

.6%

+17

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2014 2015



0

1

2



2013 2014 2015

$493,444

$541,450

+8

.4%

+9

.7%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

0.5

1

1.5

2

2.5



2013 2014 2015

$533,600

$588,995

+6

.7%

+10

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$500,000

$510,000

$520,000

$530,000

$540,000

$550,000

$560,000

$570,000

$580,000

$590,000

$600,000

2014 2015



0

1

2

3

4

5

6

7



2013 2014 2015

$920,000

$1,080,000

+10

.6%

+17

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2014 2015



0

1

2



2013 2014 2015

$493,444

$541,450

+8

.4%

+9

.7%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

0.5

1

1.5

2

2.5



2013 2014 2015

$533,600

$588,995

+6

.7%

+10

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$500,000

$510,000

$520,000

$530,000

$540,000

$550,000

$560,000

$570,000

$580,000

$590,000

$600,000

2014 2015




SOUTHWEST L AKE WASHINGTON

THE

WES

TERN

SH

ORE

OF

LAK

E W

ASH

ING

TON

The Mount Baker and Seward Park communities, being farthest from downtown Seattle, were among

the last to be developed on the western shore of Lake Washington. Owners of view properties here can see the length of the lake north-by-northeast to Mt. Baker, the “shining white, steep mountain” in the distance and the namesake of the Mount Baker community. As a whole, the Southwest Lake Washington micro-market and its component communities consistently have been seller’s markets over the past three years, and median prices continue to rise. The neighborhoods here are culturally diverse, with middle-class affluent shopping in nearby Columbia City, and with a rich heritage contributing some of the finer moments in Seattle’s history.

Besides their lakeshore locations, these communities share similar origins to the Madison Park community

further north in that they were opened to development by the extension of trolley lines from downtown Seattle. Also like Washington Park, the Mount Baker community was designed by the Olmsted Brothers to maximize the views from the slopes overlooking the lake. In its early years, Mount Baker’s residents harbored a “City Beautiful” perspective on their elite enclave; but Mount Baker soon became one of Seattle’s most inclusive, most engaged communities, exemplifying the “Seattle Spirit” by hosting baseball teams and Seattle’s world-famous hydroplane races.

The supply of homes for sale in Mount Baker has averaged one to two months over the past two years: 32 days in 2015, 44 in 2014, and 53 in 2013. Prices were higher in 2015, but by a less impressive margin due to more frequent sales of lower-priced homes.


Seward Park is named for William H. Seward, U.S. President Lincoln’s Secretary of State whose negotiated purchase of the Alaska Territory contributed so much to Seattle’s early development. An early bequest establishing the Kline Galland Home for the elderly attracted Jewish families to this place, which by the mid-1990s had become a center of Seattle’s Jewish community. Like the surrounding area, the community is culturally diverse and contains many impressive homes. Tiny Seward Park Beach is one of the more family-friendly waterfront venues on Lake Washington.

More than Mount Baker, the median price of homes in Seward Park set the trend for the broader Southwest Lake Washington micro-market, with prices here rising at a similar rate in 2015. However, the duration of inventory was somewhat longer, although still in seller’s market territory. There were 54 days in inventory in 2015, down from 67 in 2014, and 86 in 2013.

THE SOUTHWEST LAKE WASHINGTON MICRO-MARKET AND ITS COMPONENT COMMUNITIES CONSISTENTLY HAVE BEEN SELLER’S MARKETS OVER THE PAST THREE YEARS, AND MEDIAN PRICES CONTINUE TO RISE.

$1,200,000 $1,295,000

+15

.4%

+7.

9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$245,000

$273,975

+11

.4%

+11

.8%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10

11



2013 2014 2015

0

1

2

3

4

5



2013 2014 2015

$565,000

$604,375

+20

.0%

+7.

0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$540,000

$550,000

$560,000

$570,000

$580,000

$590,000

$600,000

$610,000

2014 2015



$1,200,000 $1,295,000

+15

.4%

+7.

9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$245,000

$273,975

+11

.4%

+11

.8%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10

11



2013 2014 2015

0

1

2

3

4

5



2013 2014 2015

$565,000

$604,375

+20

.0%

+7.

0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$540,000

$550,000

$560,000

$570,000

$580,000

$590,000

$600,000

$610,000

2014 2015



M o u n t B a k e r , S e a t t l e$ 1 , 7 0 5 , 0 0 0 U S D


Eastern Lake Washington Waterfront is a subjectively-defined class of properties on the

eastern shore of Lake Washington and inclusive of Mercer Island. It is not designated by the NWMLS. The boundaries are, in the south, Gene Coulon Memorial Park; in the north, Denny Park west of Juanita/Kirkland; and Mercer Island shorefront. Only waterfront properties within this area were selected.

This class of properties offers insight into the dynamics of this property segment for buyers as well as sellers. Notably, the volatility of inventory and variance in pricing are remarkably higher for these properties, and are connected with the differences in size, features, view and access, many of which cannot be captured by reduction to price per square foot. The median price of these properties obscures this volatility; yet the value of waterfront properties is almost invariably higher by square foot than properties without waterfront access. This can be seen in the proportion of waterfront properties in

every neighborhood that sell at multiples of two to three times the median price in the surrounding area.

For waterfront properties in this particular area, prices were up by nearly 39 percent from 2013 to 2014; yet in this past year as markets surged all around Puget Sound, waterfront properties in this area actually fell by 2.2 percent. The reason is the inherent variation and distinctions within this class of real estate. Knowing the cachet of Seattle waterfront in this area, sellers unsurprisingly expect a premium for these properties when they list. As can be seen, however, this often leads to lengthy market times and price concessions to committed buyers.

EASTERN L AKE WASHINGTON WATERFRONT

H u n t s P o i n t , W a s h i n g t o n$ 7, 8 8 0 , 0 0 0 U S D

0

1

2

3

4

5



2013 2014 2015

$245,000

$273,975

+11

.4%

+11

.8%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10


Gig Harbor/Fox Island: Months In Inventory

2013 2014 2015$374,000

$410,000

+11

.6%

+9

.6%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

2014 2015

Gig Harbor/Fox Island Median Price Year-Over-Year


0123456789

10111213141516


Lake Washington Waterfront: Months In Inventory

2013 2014 2015$2,061,00

0 $2,015,00

0

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2014 2015

Lake Washington Waterfront Median Price Year-Over-Year


0

1

2

3

4

5



2013 2014 2015

$245,000

$273,975

+11

.4%

+11

.8%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10



2013 2014 2015$374,000

$410,000

+11

.6%

+9

.6%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

2014 2015



0123456789

10111213141516



2013 2014 2015$2,061,00

0 $2,015,00

0

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2014 2015




NWMLS Area 540 extends from the eastern shore of Lake Sammamish to the eastern

border of King County in the Cascade Range. It includes Issaquah north of I-90 (where Costco is headquartered), as well as the city of Sammamish, the towns of Snoqualmie and North Bend, and the census-designated place of Fall City. Skyline High School in Sammamish and Mount Si High School in Snoqualmie are among the state’s top-ranked public high schools according to U.S.News & World Report.⁵⁶ Housing in this area is predominantly single-family, with SFRs comprising 68.9 percent of homes in North Bend, 85. 5 percent in Snoqualmie, and 93.0 percent in Sammamish in 2015.⁵⁷ The area has been a consistent seller’s market over the past three years, with inventory loosening in January and tightening each spring. The duration of supply averaged 39 days in 2015, 55 in 2014, and 54 in 2013. Despite wide-ranging types

of communities comprising this area, the median sale price east of Lake Sammamish was 35.4 percent higher in 2015 than that of King County generally. At 10.4 percent, sellers in 2015 enjoyed stronger year-over-year gains than those in 2014. The profile of deviation from listed prices is markedly similar to that found south of I-90, as prices in both areas are equally consistent with the countywide trend. This is especially true in the area north of the freeway, as prices have not appeared to vary frequently by more than one percent from list.

EAST OF L AKE SAMMAMISH

S a m a m m i s h , W a s h i n g t o n$ 1 , 4 0 0 , 0 0 0 U S D

0

1

2

3

4

5

6

7



2013 2014 2015

$920,000

$1,080,000

+10

.6%

+17

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2014 2015



0

1

2



2013 2014 2015

$493,444

$541,450 +

8.4

%

+9

.7%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

0.5

1

1.5

2

2.5



2013 2014 2015

$533,600

$588,995

+6

.7%

+10

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$500,000

$510,000

$520,000

$530,000

$540,000

$550,000

$560,000

$570,000

$580,000

$590,000

$600,000

2014 2015



0

1

2

3

4

5

6

7



2013 2014 2015

$920,000

$1,080,000

+10

.6%

+17

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2014 2015



0

1

2



2013 2014 2015

$493,444

$541,450

+8

.4%

+9

.7%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

0.5

1

1.5

2

2.5



2013 2014 2015

$533,600

$588,995

+6

.7%

+10

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$500,000

$510,000

$520,000

$530,000

$540,000

$550,000

$560,000

$570,000

$580,000

$590,000

$600,000

2014 2015




NWMLS Area 500 combines southern Bellevue and the neighborhoods of Issaquah south

of I-90 with the towns of Eastgate and Newcastle. Costco, the third-largest retailer in the U.S., is headquartered adjacent to this area on the north side of I-90 in Issaquah. This area includes both the International School and Newport High School in Bellevue, along with Issaquah High School—all of which are ranked among the top 20 public high schools in the state by U.S.News & World Report.⁵⁸

The population of Issaquah grew by 9.5 percent from 2010 through 2015. Newcastle, about a third of Issaquah’s size, grew more slowly at 5.4 percent. SFRs comprise a greater share of Newcastle’s housing stock: 72.4 percent to Issaquah’s 50.9 percent.⁵⁹ The area is a strong seller’s market, with supply averaging 40 days in 2015, 52 days in 2014, and 47 days in 2013.

Although 43.7 percent higher than the King County

median sale price, the median on the southern Eastside in 2015 slightly lost ground in percentage terms, with a year-over-year gain that fell short of that seen in 2014. The deviation of sales from listed prices this past year showed a similar pattern as seen throughout the county, appearing to lead the county trend from the spring through the early summer.

EAST SIDE SOUTH OF I -90

B e l l e v u e , W a s h i n g t o n$ 1 , 7 7 0 , 0 0 0 U S D

0

5

10

15

20

25



2013 2014 2015

$275,000 $283,750

+1.

9%

+3.

2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3



2013 2014 2015

$577,600 $625,000

+15

.5%

+8

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$991,750

$1,100,000

+9

.7%

+10

.9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2014 2015



0

5

10

15

20

25



2013 2014 2015

$275,000 $283,750

+1.

9%

+3.

2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3



2013 2014 2015

$577,600 $625,000

+15

.5%

+8

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$991,750

$1,100,000

+9

.7%

+10

.9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2014 2015




Northeast Snohomish County is a primarily rural area wherein some communities are in

transition to upscale exurban commuter retreats. These include Snohomish and Lake Stevens, respectively southeast and east of Everett; Granite Falls on the Stillaguamish River; and Lochsloy between Lake Stevens and Granite Falls. All these towns are minutes away from the grandeur of the North Cascades.

From 2010 through 2015, the population of Lake Stevens grew by 6.5 percent, Arlington by 3.1 percent and Snohomish by 3.2 percent.⁶⁰ Of Lake Stevens' 10,908 housing units, 79.7 percent are SFRs. The proportion of SFRs in smaller Snohomish, less than a third the size of Lake Stevens by population, is 59.8 percent.⁶1

After hesitating steps in 2013 and 2014, Northeast Snohomish County converted more convincingly to a seller’s market in 2015. Months in inventory

averaged 2.4 in 2015, 3.0 in 2014, and 2.9 in 2013. In this more remote region of Snohomish County, prices are below median, but have risen by more than 10 percent annually for the past two years, exceeding the countywide rate. During these years, the deviation of sales from list prices closely tracked the county figure until late 2015.

NORTHEAST SNOHOMISH

A r l i n g t o n , W a s h i n g t o n$ 4 2 3 , 0 0 0 U S D

0

1

2

3

4

5


Northeast Snohomish County: Months In Inventory

2013 2014 2015

$272,403

$299,950

+10

.3%

+10

.1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015

Northeast Snohomish Median Price Year-Over-Year


0

1

2

3

4

5

6

7

8

9

10

11

12


Camano Island: Months In Inventory

2013 2014 2015

$269,000

$302,250

+0

.8%

+12

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015

Camano Island Median Price Year-Over-Year


0

1

2

3

4

5

6

7

8

9

10

11

12


Anacortes: Months In Inventory

2013 2014 2015

$347,000 $357,950

+13

.6%

+3.

2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2014 2015

Anacortes Median Price Year-Over-Year


0

1

2

3

4

5



2013 2014 2015

$272,403

$299,950

+10

.3%

+10

.1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10

11

12



2013 2014 2015

$269,000

$302,250

+0

.8%

+12

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10

11

12



2013 2014 2015

$347,000 $357,950

+13

.6%

+3.

2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2014 2015




Southwest Snohomish County is midway between the exurban communities of Kitsap, Skagit and

Island counties—scenic and in some cases more affordable, with minimal commuting distance for people who want to escape the city on weekends. From Edmonds, the ferry to Kingston offers the most direct route to Port Gamble on the Kitsap Peninsula, and further on, to Port Ludlow in Jefferson County.

Schools in this area include Brighton, a K-8 private school in Mountlake Terrace, which is SEVP certified.62 Snohomish County’s population grew by 2.24 percent year-over-year, a faster rate than King County in 2015. In Southwest Snohomish communities, populations grew more slowly: Edmonds grew by 1.4 percent, and Lynnwood added 1.1 percent—although conveniently located Mountlake Terrace outpaced these two, expanding by 2.7 percent.63 The SFR proportion of Edmonds' housing stock is 63.3 percent. In Brier, this proportion is 97.4

percent. All 469 homes in the village of Woodway are SFRs.64

Southwest Snohomish County has been a seller’s market for the past 36 months, with two months or fewer sales in inventory for much of the past two years: 43 days in 2015, 63 days in 2014, and 50 days in 2013. Although the median price in this area was lower than in King County next door, it was more than 10 percent higher than the Snohomish County median price. At 12.1 percent, price appreciation in Southwest Snohomish County outpaced the state-leading county rate of growth. The local deviation in sale-to-list prices generally adhered to the two-year pattern within about one percent of the listed price, except for a 104.5 percent spike in May 2014.

SOUTHWEST SNOHOMISH

E d m o n d s , W a s h i n g t o n$ 6 2 4 , 0 0 0 U S D

$475,000

$527,000 +

10.9

%

+10

.9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



1

2



2013 2014 2015

0

1

2

3

4



2013 2014 2015

$330,000

$370,000

+8

.2%

+12

.1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2014 2015



0

1

2

3

4



2013 2014 2015$300,000

$327,500

+9

.1%

+9

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015



$475,000

$527,000

+10

.9%

+10

.9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



1

2



2013 2014 2015

0

1

2

3

4



2013 2014 2015

$330,000

$370,000

+8

.2%

+12

.1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2014 2015



0

1

2

3

4



2013 2014 2015$300,000

$327,500

+9

.1%

+9

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015




Everett is a regional employment center, most notably for Boeing and the U.S. Navy’s Pacific

Home Port. Weekend recreation is close at hand in Skagit and Island Counties and the North Cascades. It isn’t necessary to leave the area to find comfort: there are affluent communities at Mill Creek and the Mill Creek Country Club east of I-5; at any of several neighborhoods branching off of Harbour Point Boulevard from Picnic Point north; through Mukilteo to Front Street where the Clinton ferry docks; and along the shore to Everett.

Kamiak High School in Mukilteo is rated 20th in the state by U.S.News & World Report.65 The seventh largest city in Washington State, Everett's population has grown by 2.7 percent; Mukilteo, one-fifth the size of Everett, has added 3.2 percent to its population.66 The proportion of SFRs to Everett's housing stock is the lowest of the areas profiled outside of Seattle: 47.9 percent (This proportion in the city of Seattle is 43.1 percent). In Mukilteo, it is 64.5 percent.67 Everett/Mukilteo

briefly exited seller’s market territory in early 2014, but there were less than two months in inventory from March through the end of 2015. Months of supply averaged 54 in 2015, 76 in 2014, and 60 in 2013.

Prices rose steadily and respectably over the past two years; but as this area is considerably farther from the frenetic employment centers to the south, prices here are lower than the Snohomish County median which is set by markets closer in. Deviation of sales from listed prices followed the county trend more closely in 2015 than in 2014, with sellers allowing price reductions in all but late spring and early summer.

EVERET T / MUKILTEO

E v e r e t t , W a s h i n g t o n$ 7 0 0 , 0 0 0 U S D

$475,000

$527,000

+10

.9%

+10

.9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



1

2



2013 2014 2015

0

1

2

3

4



2013 2014 2015

$330,000

$370,000

+8

.2%

+12

.1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2014 2015



0

1

2

3

4



2013 2014 2015$300,000

$327,500

+9

.1%

+9

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015



$475,000

$527,000

+10

.9%

+10

.9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



1

2



2013 2014 2015

0

1

2

3

4



2013 2014 2015

$330,000

$370,000 +

8.2

%

+12

.1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2014 2015



0

1

2

3

4



2013 2014 2015$300,000

$327,500

+9

.1%

+9

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015




The “Gateway to the San Juans,” Anacortes comprises not only this historic town on the

northern end of Fidalgo Island, but the rest of the island west of the Swinomish Indian Reservation.

Anacortes competes with Camano Island as a regional retirement haven, though with a lesser proportion of retirees to population: 42 percent drew social security in 2014, and 27.7 percent took retirement income. Anecdotally, some officers at Naval Air Station Whidbey to the south at Oak Harbor choose to live in Anacortes, but the actual numbers are not very large: less than 300 service members lived here in 2014, or 2.1 percent of the population. Nearly eight percent of workers telecommute or work at home.68 Anacortes High School has been named among the top public schools in the state, as are two other schools in the San Juan Islands nearby: Friday Harbor High School and Orcas Island High School, ranking 17 and 15, respectively.69 Spring Street International School in Friday Harbor is an SEVP school.

The population of Anacortes grew by 3.4 percent from 2010 through 2015.70 The proportion of SFRs among the housing stock is 80.2 percent.71 The area has been a balanced market for most of the past 36 months, dallying at the edge of a seller’s market from April 2015 through most of the summer.

Although prices here are considerably lower than in King, Snohomish or Kitsap Counties, the 2015 median price in Anacortes was more than 40 percent higher than the median price across Skagit County. Price appreciation here actually fell behind that of the county year-over-year, however, as prices countywide advanced at a percentage rate three times that of Anacortes.

ANACORTES

A n a c o r t e s , W a s h i n g t o n$ 1 , 3 8 1 , 0 0 0 U S D

0

1

2

3

4

5



2013 2014 2015

$272,403

$299,950

+10

.3%

+10

.1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10

11

12



2013 2014 2015

$269,000

$302,250 +

0.8

%

+12

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10

11

12



2013 2014 2015

$347,000 $357,950

+13

.6%

+3.

2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$272,403

$299,950

+10

.3%

+10

.1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10

11

12



2013 2014 2015

$269,000

$302,250

+0

.8%

+12

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10

11

12



2013 2014 2015

$347,000 $357,950

+13

.6%

+3.

2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2014 2015




C a m a n o I s l a n d , W a s h i n g t o n$ 4 8 5 , 0 0 0 U S D

Camano Island is the second of the two main islands in Island County. The local chamber

of commerce has positioned the island as a retirement haven or vacation retreat. In 2014, 45.8 percent of residents were drawing social security funds and 29 percent were pensioners. The Census Bureau also reports, however, that of the 15,201 residents of Camano Island, more than 4,500 were commuting to work in the Seattle MSA, which includes Snohomish County as well as King and Pierce counties; and more than 2,000 are either commuting north to Mount Vernon, south to Everett, or further south to Seattle.72

Camano Island residents find their peaceful getaways at Utsalady Bay in the north, Madrona Beach on the western shore, Driftwood Shores along Triangle Cove on the island's eastern coast, and southeasterly by South Camano Drive along the banks of the Saratoga Passage.

There are 8,590 housing units on Camano Island, 6,285 of which are occupied (an occupation rate of 73.2 percent).73 Despite the faraway ambience,

Camano Island is close-in enough to have participated in the market dynamics driving sales nearer to King County. The island flirted at the edge of seller’s market territory for much of 2015. Months in inventory averaged 4.5 months in 2015, 6.2 months in 2014, and 7.4 months in 2013.

Reflecting the more volatile market dynamics of exurban areas, Camano Island followed a less-than-one-percent increase in median sale prices in 2014 with a double-digit increase from 2014 to 2015. Less-frequent selling intervals in this area show their influence in the deviation of prices paid from list, reminding sellers to consult a licensed agent when pricing a property for sale.

CAMANO ISL AND

0

1

2

3

4

5



2013 2014 2015

$272,403

$299,950

+10

.3%

+10

.1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10

11

12



2013 2014 2015

$269,000

$302,250

+0

.8%

+12

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10

11

12



2013 2014 2015

$347,000 $357,950

+13

.6%

+3.

2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$272,403

$299,950 +

10.3

%

+10

.1%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10

11

12



2013 2014 2015

$269,000

$302,250

+0

.8%

+12

.4%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10

11

12



2013 2014 2015

$347,000 $357,950

+13

.6%

+3.

2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

2014 2015




The region south from SeaTac International Airport, around the shore of Poverty Bay

at Redondo, and west to Commencement Bay comprises this area.74 It encompasses the communities of Dash Point and Browns Point at the mouth of Commencement Bay. It also includes the city of Des Moines, which is home to Aviation High School, the fifth-highest rated school in the state according to U.S.News & World Report.75

With a population of just over 30,000 in 2015, Des Moines is estimated to have grown by less than 1.5 percent over the preceding five years.76 About 60 percent of the town's housing stock comprises SFRs.77

Although adjacent to each other at the elbow of Commencement Bay and Puget Sound, the communities of Dash Point and Browns Point differ markedly. Many of Dash Point’s population are retirees, with 30 percent drawing retirement.

Browns Point has higher concentrations in retail trade, with only 22.7 percent having retired.78 Although the preceding two years saw this area’s monthly supply in a seller’s market throughout the spring and most of the summer, only in 2015 did the market remain favorable to sellers for the entire year. Months in inventory averaged 1.9 in 2015, 2.7 in 2014, and 2.8 in 2015. Growth in the median sale price was steady at 11.8 percent, slightly exceeding the rate in the preceding year.

SOUTHWEST KING C OUNT Y/BROWNS POINT

D e s M o i n e s , W a s h i n g t o n$ 8 9 5 , 0 0 0 U S D

0

1

2

3

4

5



2013 2014 2015

$245,000

$273,975

+11

.4%

+11

.8%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10



2013 2014 2015$374,000

$410,000

+11

.6%

+9

.6%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

2014 2015



0123456789

10111213141516



2013 2014 2015$2,061,00

0 $2,015,00

0

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$245,000

$273,975

+11

.4%

+11

.8%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10



2013 2014 2015$374,000

$410,000

+11

.6%

+9

.6%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

2014 2015



0123456789

10111213141516



2013 2014 2015$2,061,00

0 $2,015,00

0

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2014 2015




The Burien/Normandy Park area of Southwest King County includes both Burien and upscale

Normandy Park, as well as the neighborhoods of Seahurst, Shorewood, and Three Tree Point. Downtown Burien has been gentrifying for some years. John F. Kennedy Memorial High School in Burien is an SEVP school certified to admit foreign students.41 SeaTac International Airport offers connections to Asia and worldwide, and the corporate headquarters of Alaska Air Group are located beside Angle Lake in the southeast corner of this area.

In 2015, the population of Burien was estimated at 48,810 and that of Normandy Park at 6,420. Nearly 62 percent of homes in the area are SFRs. Burien/Normandy Park is a seller’s market: in 2015, the average monthly supply was 1.8, down from 2.6 in 2014 and 2.7 in 2013.

The annual median price was $287,000, 17.2 percent higher than in 2014—the fourth largest

year-over-year increase among the communities reported here—building on a 9.8 percent increase from the preceding year. Nevertheless, while tracing the county pattern of monthly deviations from list price offers over the past year, sold prices in this area tend to remain just a bit lower than throughout King County.

BURIEN NORMANDY PARK

0

1

2

3

4

5



2013 2014 2015

$244,950

$287,000

+9

.8%

+17

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$385,000

$435,000

+6

.9%

+13

.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

+24.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015



0

1

2

3

4

5

6

7

8



2013 2014 2015

$274,900

$328,377

-0.4

%

+19

.5%

-4.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

+24.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$244,950

$287,000

+9

.8%

+17

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$385,000

$435,000

+6

.9%

+13

.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

+24.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015



0

1

2

3

4

5

6

7

8



2013 2014 2015

$274,900

$328,377

-0.4

%

+19

.5%

-4.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

+24.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015



N o r m a n d y P a r k , W a s h i n g t o n$ 8 5 0 , 0 0 0 U S D


This area80 combines Gig Harbor, across the Tacoma Narrows from Point Defiance, with

the neighboring communities of Artondale and Fox Island. In 2015, sales at 300 percent of the median price in these areas were seen at Fox Island and Centerwood. Gig Harbor High school is ranked among the state’s top public high schools.81

Gig Harbor is a boomburb for Tacoma and Bremerton as well. It is the third-fastest growing city in Pierce County, with a 20 percent population gain over the past five years, and seven percent growth just since 2014.82 Annexation does not explain this growth, which has taken place amid the existing community. To date, housing appears to be keeping up, following the population growth at 20.9 percent. From 2010 through 2015, the stock of SFRs in Gig Harbor grew by 17 percent, with multifamily mushrooming by 28.3 percent.83

This area is farther out than many for commuting, although even at Fox Island (which is linked by bridge

to its larger neighbors), nearly 90 percent of workers commute.84 Consequently, despite the enormous growth, the market here has generally remained balanced in recent years. Months in inventory averaged 4.2 in 2015, 5.4 in 2014, and 5.3 in 2013.

In 2015, the median price in Gig Harbor/Fox Island was nearly 67 percent higher than the Pierce County median price. Although the year-over-year price growth was not as strong as in the preceding year, it still outpaced the countywide rate of increase. Deviation of prices from list here and throughout Pierce County tended toward the downside, strongly contrasting with the buyer competition seen in King County over the past year.

GIG HARBOR/FOX ISLAND

F o x I s l a n d , W a s h i n g t o n$ 1 , 1 2 0 , 0 0 0 U S D

0

1

2

3

4

5



2013 2014 2015

$245,000

$273,975 +

11.4

%

+11

.8%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10



2013 2014 2015$374,000

$410,000

+11

.6%

+9

.6%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

2014 2015



0123456789

10111213141516



2013 2014 2015$2,061,00

0 $2,015,00

0

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$245,000

$273,975

+11

.4%

+11

.8%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3

4

5

6

7

8

9

10



2013 2014 2015$374,000

$410,000

+11

.6%

+9

.6%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

2014 2015



0123456789

10111213141516



2013 2014 2015$2,061,00

0 $2,015,00

0

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2014 2015




Bainbridge Island in Kitsap County includes Port Madison, Rolling Bay, and dozens of other

small communities, as well as the historic town of Winslow. The island’s Bainbridge High School and Eagle Harbor High School are both ranked among the top public high schools in the state by U.S.News & World Report.85 The population has held relatively steady at just over 23,000 since 2010.86 Despite its proximity to Seattle by ferry, Bainbridge Island’s 27.6 square miles available as living space render a population density of only 847 persons per square mile (psm). This is 59 percent less concentrated than Tiburon in California’s San Francisco Bay Area (2,065 psm), and even 39 percent less dense than Anacortes in Skagit County (1,388 psm). Accordingly, 80.8 percent of Bainbridge Island’s housing stock remains single-family.

The island has been a seller’s market since October 2014, and monthly supply spent most of 2015 below two months. The months in inventory

averaged 2.1 in 2015, 2.8 in 2014, and 3.5 in 2013. As in many other exurban locations, prices tend to be more volatile on Bainbridge Island, as seen in these charts. Yet here again, the island benefits as a bedroom community to Seattle: the median price rose by double digits in each of the past two years, and in 2015 was 137.9 percent higher than the Kitsap County median. In 2014, seller price concessions were more common on Bainbridge Island than later in the past year, underscoring the need for a comparative market analysis and professional guidance when pricing a property for sale.

BAINBRID GE ISL AND

B a i n b r i d g e I s l a n d , W a s h i n g t o n$ 2 , 7 5 0 , 0 0 0 U S D

0

1

2

3

4

5

6



2013 2014 2015

$542,500

$615,000

+10

.9% +

13.4

%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3

4



2013 2014 2015

$380,000

$438,750

+8

.0%

+15

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015



0

1

2

3

4



2013 2014 2015

$495,000

$550,000

+9

.0% +

11.1

%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015



0

1

2

3

4

5

6



2013 2014 2015

$542,500

$615,000

+10

.9% +

13.4

%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3

4



2013 2014 2015

$380,000

$438,750

+8

.0%

+15

.5%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015



0

1

2

3

4



2013 2014 2015

$495,000

$550,000

+9

.0% +

11.1

%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

2014 2015




The Poulsbo area on the Kitsap Peninsula comprises the communities of Poulsbo,

Lemolo, Lincoln Hill, and Poulsbo Place. Poulsbo is the home of West Sound Academy, one of the SEVP private schools certified to admit foreign students at both the middle and upper school levels.87 The population of Poulsbo—originally a Native American settlement, later a Scandinavian enclave—is estimated to have grown from 9,200 in 2010 to 9,950 in 2015.88 SFRs comprise 67.7 percent of the local housing stock. After dipping briefly into seller’s market territory in mid-2014, the monthly supply tightened three more times, then remained there from June 2015 through the end of the year. The average supply of homes for sale was 2.4 months in 2015, down from 4.0 in 2014 and 5.1 in 2013. Demonstrating the degree to which prices in this market can shift, Poulsbo’s median sale price more than reversed 2014’s year-over-year decline, returning a 19.5 percent gain in 2015—the second-

highest percentage gain we saw after Belltown/Downtown Seattle. Although slightly more volatile than prices in Kitsap County generally, sale prices and their deviation from list prices trended with others countywide, which have together irregularly risen toward 100 percent over the past two years.

POULSB O

P o u l s b o , W a s h i n g t o n$ 1 , 0 5 5 , 0 0 0 U S D

0

1

2

3

4

5



2013 2014 2015

$244,950

$287,000

+9

.8%

+17

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$385,000

$435,000

+6

.9%

+13

.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

+24.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015



0

1

2

3

4

5

6

7

8



2013 2014 2015

$274,900

$328,377

-0.4

%

+19

.5%

-4.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

+24.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$244,950

$287,000

+9

.8%

+17

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$385,000

$435,000 +

6.9

%

+13

.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

+24.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

2014 2015



0

1

2

3

4

5

6

7

8



2013 2014 2015

$274,900

$328,377

-0.4

%

+19

.5%

-4.0%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

+24.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

2014 2015




Port Ludlow is an unincorporated community in Jefferson County near the mouth of the

Hood Canal separating the Olympic and Kitsap peninsulas. The estimated total population in 2014 was 2,461; nearly 70 percent of that population was on social security payments and 44.2 percent were drawing retirement. SFRs comprise 85.5 percent of the local housing stock in Port Ludlow.89

Given the market drivers in this location, the supply of homes for sale is often out of balance with demand, so sellers and their agents need to be especially diligent about pricing and marketing properties. Until 2015, monthly supply provided little guidance to the prospective time on market. In the early summer, however, Port Ludlow moved to a more balanced position. The months in inventory averaged 8.9 in both 2014 and 2015.

Port Ludlow’s location at the eastern end of Jefferson County, just over the Hood Canal Bridge from Kitsap County, enables it to draw weekend

refugees from Seattle and elsewhere around the Sound. As a result, the median sale price of homes in Port Ludlow has exceeded that of Jefferson County at large by 5.5 percent—unsurprisingly, as so much of the county comprises rural areas and wilderness further west. Port Ludlow is one among six of the 24 areas studied in which prices did not outpace their county medians. Although in this case, not by much: the Jefferson County gain was only 4.05 percent year-over-year. Sellers throughout Jefferson County have tended to price properties too high, but price reductions in Port Ludlow have not reached the levels found to the north or west in the county.

PORTLUDLOW

P o r t L u d l o w , W a s h i n g t o n$ 5 6 0 , 0 0 0 U S D

0

5

10

15

20

25



2013 2014 2015

$275,000 $283,750

+1.

9%

+3.

2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3



2013 2014 2015

$577,600 $625,000

+15

.5%

+8

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$991,750

$1,100,000

+9

.7%

+10

.9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2014 2015



0

5

10

15

20

25



2013 2014 2015

$275,000 $283,750

+1.

9%

+3.

2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

2014 2015



0

1

2

3



2013 2014 2015

$577,600 $625,000

+15

.5%

+8

.2%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2014 2015



0

1

2

3

4

5



2013 2014 2015

$991,750

$1,100,000

+9

.7%

+10

.9%

+0.0%

+4.0%

+8.0%

+12.0%

+16.0%

+20.0%

$-

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

2014 2015



B e l l t o w n , S e a t t l e$ 5 9 0 , 0 0 0 U S D

58 / / OUR PHILOSOPHY //

SINCE 1744 THE SOTHEBY’S BRAND IS RENOWNED WORLDWIDE FOR MARKETING THE EXTRAORDINARY. WE CONTINUE THIS LEGACY IN THE PASSIONATE PURSUIT OF REAL ESTATE EXCELLENCE WITH TRUSTED INSIGHT, QUALITY SERVICE AND PROVEN RESULTS AT ALL PRICE POINTS. WHETHER YOUR NEXT ADDRESS IS AROUND THE CORNER OR AROUND THE GLOBE, WE’RE HERE TO HELP.

1 7 4 4

1 7 4 4

/ / OUR PHILOSOPHY // 59

OUR PHILOSOPHY

Realogics Sotheby's International Realty (RSIR) is built upon a foundation of breaking through the status quo to create new conversations for brokers within the markets it serves. With a passion for evolving

forward, RSIR fosters a progressive culture to cultivate change, and celebrates each agent with a broker-centric business model of award-winning marketing and micro-branding.

With an “international” middle name, RSIR represents the best of both worlds through a local and global reach. Given this position, RSIR is responsible for representing the Puget Sound region to an international audience to showcase the amazing lifestyle and potential this area holds. RSIR proudly represents global citizens and is thrilled they’re choosing to make their homes here.

ARTFULLY UNITING EXTRAORDINARY HOMES WITH EXTRAORDINARY LIVES

60 / / INDEX //

INDEX

COMMUNITY REPORTS NEIGHBORHOOD REPORTS16 / / KING COUNT Y //

18 / / PIERCE COUNT Y //

20 / / KIT SAP COUNT Y //

21 / / SKAGIT COUNT Y //

22 / / ISL AND COUNT Y //

19 / / SNOHOMISH COUNT Y //

23 / / JEFFERSON COUNT Y //

26 / / BELLTOWN & D OWNTOWN SEAT TLE //

28 / / CENTR AL SEAT TLE OVERVIEW //

30 / / CENTR AL WEST L AKE WASHINGTON //

32 / / BALL ARD/GREEN L AKE/FREMONT //

33 / / WEST SEAT TLE //

29 / / QUEEN ANNE/MAGNOLIA //

34 / / NORTH SEAT TLE //

35 / / SOUTHEAST SEAT TLE //

36 / / MERCER ISL AND //

38 / / JUANITA/WO ODINVILLE //

39 / / REDMOND/CARNATION //

40 / / WEST BELLEVUE //

37 / / KIRKL AND/BRIDLE TR AILS / /

41 / / BELLEVUE EAST OF I-405 / /

42 / / SOUTHWEST L AKE WASHINGTON //

44 / / EASTERN L AKE WASHINGTON WATERFRONT //

46 / / EAST SIDE SOUTH OF 1-90 / /

47 / / NORTHEAST SNOHOMISH //

48 / / SOUTHWEST SNOHOMISH //

45 / / EAST OF L AKE SAMMAMISH //

49 / / EVERET T/MUKILTEO //

50 / / ANACORTES //

51 / / CAMANO ISL AND //

53 / / BURIEN/NORMANDY PARK //

54 / / GIG HARBOR/FOX ISL AND //

55 / / BAINBRID GE ISL AND //

52 / / SOUTHWEST KING COUNT Y/BROWNS POINT //

56 / / POULSBO //

57 / / PORT LUDLOW //

/ / REFERENCES // 61

REFERENCES

1. Raicht, Patricia and Aida Zain. (Q4-2015). "Office Insight: Market momentum shows no sings of slowing down." Jones Lang LaSalle. Retrieved from http://www.us.jll.com/united-states/en-us/Research/US-Seattle-Bellevue-Office-Insight-Q4-2015-JLL.pdf 2. Lamm, Greg. (19 Aug. 2015). "Booming tech industry drives Seattle unemployment rate to pre-recession levels." The Puget Sound Business Journal. Note: these counties are monitored together as the "Seattle-Tacoma-Bellevue, WA Metropolitan Statistical Area (MSA)" for analytical purposes by the U.S. Bureau of Census and the Bureau of Labor Statistics (BLS).

3. Smith, Rob. (18 Dec. 2015). "Jobs may be tougher to come by for Seattle area IT workers next year." The Puget Sound Business Journal.

4. BLS. (30 Dec. 2015). "Seattle Area Economic Summary." BLS. Retrieved from http://www.bls.gov/regions/west/summary/blssummary_seattle.pdf

5. BLS. (30 Apr. 2015). "Occupational Employment and Wages in Seattle-Bellevue-Everett, May 2014." BLS. Retrieved from http://www.bls.gov/regions/west/news-release/occupationalemploymentandwages_seattle.htm 6. Forecasting & Research Division. (Sept. 2015) "Population Trends." Washington State Office of Financial Management (OFM). 6.

7. Washington State Department of Licensing (DOL). (2015, 2014, 2013). "Washington State Drivers Report." DOL.

8. Goldsmith, Steven. (18 Sept. 2015). "Feeling crowded? Seattle area adds 61,373 residents in a year." The Puget Sound Business Journal. 9. United States Census Bureau. (2014). "American Community Survey (ACS)." United States Census Bureau.

10. NWMLS (2015). "Annual Statistical Reviews." NWMLS.

11. Ibid. "Month's supply is an estimate of how long it would take for the entire inventory of active listings to sell at the current pace, assuming no new inventory comes onto the market. Economists consider a supply of 3-to-6 months to be a balanced market, meaning the market favors neither buyers nor sellers."

12. OFM. 5, 13.

13. Ibid. 31.

14. Ibid. 31, 38-39.

15. Ibid. 5, 13.

16. Ibid. 32.

17. Ibid. 39.

18. Ibid. 32.

19. Ibid. 8.

20. Ibid. 30.

21. These data deliver a reminder of how important it is to select a Realtor® who knows your market and carefully consider their guidance when pricing property.

22. OFM. 32.

23. The county comprises two principal, well-populated islands with contrasting transportation linkages. Whidbey Island, the larger of the two islands, is joined to the mainland by the Edmonds-Kingston and Port Townsend-Keystone ferries in the south, and by Deception Pass Bridge on the northern tip of the island. Camano Island connects from its northern end to Interstate 5 by State Route 520 through the town of Stanwood. The different points of entry/egress mean that a driver must leave the county to enter one island from the other.

24. OFM. 29.

25. Ibid. 5, 8, 10. Note: The Camano Island Chamber of Commerce cites an estimate of 15,600 residents http://camanoisland.org/about-camano The U.S. Census American Community Survey reports 15,201 for 2014; it also reports 8,590 housing units in the Camano Island Census Designated Place (CDP), which would comprise 28.8 percent of housing in unincorporated Island County.

26. Ibid 5, 7. Note: attributed to birth-death adjustment (OFM).

27. Ibid. 29. 28. Stiles, Marc. (29 Dec. 2015). "Co-working company enters Seattle by acquiring prominent Pioneer Square building." The Puget Sound Business Journal. 29. U.S. News. (2015). "Best High School Rankings." U.S. News. Retrieved from http://www.usnews.com/education/best-high-schools/national-rankings 30. DHS. (Accessed 13 Dec. 2015). "Study in the States." DHS. Retrieved from https://studyinthestates.dhs.gov/school-search 31. U.S.News "Best High School Rankings."

62 / / REFERENCES //

REFERENCES

32. U.S.News. (2015.) "North Seattle." U.S. News.

33. Zak, Annie. (17 June 2015). "Selling Seattle: The neighborhood drawing most interest from Bay Area buyers isn't Capitol Hill, Queen Anne or Ballard." The Puget Sound Business Journal. 34. U.S. News "Best High School Rankings." 35. U.S.News. (2015.) "North Seattle." U.S. News. 36. DHS Study in the States. 37. OFM. 11. 38. U.S.News "Best High School Rankings." 39. OFM. 29. 40. U.S.News "Best High School Rankings." 41. DHS Study in the States. 42. OFM. 37. 43. U.S.News "Best High School Rankings." 44. OFM. 11, 18. 45. Ibid. 29-30. 46. DHS Study in the States. 47. OFM. 11.

48. Ibid. 29. 49. DHS Study in the States.

50. U.S.News "Best High School Rankings."

51. Note: with plans to move to Interbay at Smith Cove in 2018. 52. Dill, Kathryn. (13 May 2015). "The Best Cities for Millennials Right Now." Forbes. 53. U.S. News "Best High School Rankings."

54. City Data. (2014). "Bellevue, Washington." City Data. Retrieved from http://www.city-data.com/city/Bellevue-Washington.html

55. OFM. 29.

56. U.S.News "Best High School Rankings."

57. OFM. 29-30. 58. U.S. News "Best High School Rankings." 59. OFM. 11, 29. 60. Ibid. 13-14.

61. Ibid. 32. 62. DHS Study in the States.

63. OFM. 13.

64. Ibid. 32.


66. OFM. 13-14.

67. Ibid. 32. 68. United States Census Bureau. ACS 2014.


70. OFM. 13.

71. Ibid. 32. 72. United States Census Bureau. ACS 2014.

73. Ibid. 74. Two areas in this report, "Southwest King County/Browns Point" and "Gig Harbor/Fox Island" are assembled from multiple areas in the NWMLS database. Southwest King County/Browns Point comprises areas 94, 95, 110 and 120, including the city of Des Moines.


76. OFM. 11. 77. Ibid. 29.

78. United States Census Bureau. ACS 2014. 79.DHS Study in the States. 80. The "Gig Harbor/Fox Island" area as outlined in this report

/ / REFERENCES // 63

REFERENCES

comprises NWMLS areas 1, 5, 6, 7 and 8. 81. U.S. News. (2015.) "North Seattle." U.S. News.

82. OFM. 13.

83. Ibid. 131.

84. United States Census Bureau. ACS 2014. 85. U.S.News "Best High School Rankings."

86. OFM. 11. 87. DHS Study in the States.

88. OFM. 11.

89. U.S. Census Bureau ACS.

----- Bellevue School District. (Accessed 15 Dec. 2015). "Bellevue School District 405 Statistics." Bellevue School District. Retrieved from https://www.bsd405.org/nhs/about

Department of Homeland Security (DHS). (Aug. 2014). "2013 Yearbook of Immigration Statistics." DHS. 10-11. Note: In 2013, North America and the Caribbean sent just over 1,000 more emigrants to the U.S. than did Asia.

Downtown Seattle Association. (June 2015). "Development Guide." Downtown Seattle. Retrieved from http://www.downtownseattle.com/resources/development-and-construction-projects/

Stiles, Marc. (23 Nov. 2015). "Amazon will start building third Seattle skyscraper next fall." The Puget Sound Business Journal.

Stiles, Marc. (5 July 2015). "Amazon's 7.5M sq. ft. of space in Seattle." The Puget Sound Business Journal.

Stiles, Marc. (23 Nov. 2015). "Bad timing: As thousands of new apartments open, Seattle's rental market weakens." The Puget Sound Business Journal.

U.S. Citizenship and Immigration Services (USCIS). (Accessed 13 Dec. 2015). "Immigrant Investor Regional Centers." USCIS. Retrieved from www.uscis.gov/eb-5centers

UW Office of the Registrar. (Autumn 2014). "University of Washington: International Students Profile 2014). UW Data

Management.

Wingfield, Nick. (8 Oct. 2015). "Seattle, in Midst of Tech Boom, Tries to keep Its Soul." The Seattle Times.

Thank YouRealogics S otheby's International Realty

S eatt le | Bainbr idge Is land | Kirk land | Issaquah Madison Park - C oming S oon

w w w.rsir.com

Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. An Equal Opportunity Company. If your property is listed with a real estate broker, please disregard. It is not our intention to solicit the offerings of other real estate brokers. We are happy to work with them and cooperate fully.

Each office is Independently owned and operated. Information Deemed Reliable But Cannot Be Guaranteed.

Documents

Market Report: Puget Sound Real Estate Trends & 2015 Year in Review