Every year I publish The Bainbridge Report, my yearly in-depth review of the Bainbridge Island real estate market. And this year we set three records on Bainbridge! If you don't read anything past this, here is what you need to know for moving into 2018:
Inventory is still historically low and buyer activity is elevated due to our strong job market. This is continuing to drive prices to record levels. Without a decrease in demand, prices will continue to rise in the near future. Potential headwinds could come from interest rate increases throughout 2018.
Sales
2017 recorded sales increased 18.5%, from 474 in 2016 to 562 in 2017, setting a record for most sales on Bainbridge in a single year. A strong job market, population inflows, and historically low interest rates created an intense demand for properties on Bainbridge Island. For all price points, multiple offers and very short days on the market are the norm as we move into 2018.
Inventory
Inventory continues to be the significant problem in 2017-18, with Bainbridge experiencing record low inventory for more than five years. In 2017 alone, inventory was essentially flat year-over-year, holding steady at 2.1 months. A healthy market is generally defined as 5 to 6 months inventory.
Prices
Market-wide single family median price rose significantly to $838,000, a 11% increase and highest on record. The lower range market (below $500K) continued to collapse, with housing affordability becoming a urgent issue. Overall prices are projected to continue their upward trajectory due to pressures from low inventory and very high demand, although effects of increasing interest rates could slow price growth.
Luxury
The luxury market saw a record increase in sales from 2016, from 92 transactions to 133 in 2017. This year’s strong price appreciation pushed many homes over $1M, which was great news for many sellers. Luxury sales have been climbing since 2011, up 478% over the bottom.
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:
