Every year I publish The Bainbridge Report, my yearly in-depth review of the Bainbridge Island real estate market. And each year it gets more and more interesting. If you don't read anything past this, here is what you need to know for moving into 2017:
Inventory is historically low and buyers activity is intense. This is causing prices to jump to record levels (see prices). Without a large increase in building activity or decrease in demand, prices will continue to rise in the foreseeable future.
Sales
2016 recorded sales were essentially flat, increasing from 469 in 2015 to 474, maintaining a number under the peak of ‘05-07. A strengthening job market and interest rates hovering around 4% has created an intense demand for properties on Bainbridge Island, especially around the median price point. For those homes, multiple offers and very short days on the market are the norm as we move into 2017.
Inventory
Inventory continues to be the significant problem in 2016-17, with Bainbridge experiencing record low inventory for more than four years. In 2016 alone, inventory was essentially flat year-over-year and days on the market dropped another 17% to 41 days. Despite depressed inventory levels, buyer demand has been intense.
Prices
Market-wide single family median price rose significantly to $740,000, a 10% increase and highest on record. The lower range market (below $500K) experienced the largest decrease in sales this year, down 55% from 2014. Overall prices are projected to continue their upward trajectory due to pressures from low inventory and very high demand.
Luxury
The luxury market saw a record increase in sales from 2015, from 72 transactions to 99 in 2016. This year’s strong price appreciation pushed many homes over $1M, which was great news for many sellers. Sales have been climbing since 2011, up 412% over the bottom. Significant sales include my listing on Country Club Road for $5.97M, the highest sale since the Great Recession.
If you have any questions or would like to talk about your specific needs, feel free to contact me any time at dennis.paige@sothebysrealty.com or just give me a call at 206-920-3824.
Read the full report:
