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TABLE OF CONTENTS

Charts and Commentary ……….. Pages 1-2

Market Summary Table ……….. Page 3

Glossary ………... Page 4

2016

Windermere San Juan Island

www.windermeresji.com

[email protected] 360-378-3600

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the $200K - $400K price range has a relatively large number of contracts pending sale.

We also notice that the $400K - $600K price range has a relatively large inventory of properties for sale at 34 listings. The average list price (or asking price) for all properties in this market is $1,168,960.

A total of 85 contracts have closed in the last 6 months with an average sold price of $591,383. Breaking it down, we notice that the $200K - $400K price range contains the highest number of sold listings.

Alternatively, a total of 33 listings have failed to sell in that same period of time. Listings may fail to sell for many reasons such as being priced too high, having been inadequately marketed, the property was in poor condition, or perhaps the owner had second thoughts about selling at this particular time. The $600K - $800K price range has the highest number of off-market listings at 9 properties.

"Current inventory is described as somewhat slow."

at the real estate market. Currently there are 31 sales pending in the market overall, leaving 146 listings still for sale. The resulting pending ratio is 17.5% (31 divided by 177). So you might be asking yourself, that's great... but what exactly does it mean? I'm glad you asked!

& demand of the market. Specifically, a high ratio means that listings are in demand and quickly going to contract. Alternatively, a low ratio means there are not enough qualified buyers for the existing supply. 0 5 10 15 20 25 30 35 40 $ 0 K $ 2 0 0 K $ 4 0 0 K $ 6 0 0 K $ 8 0 0 K $ 1 .0 M $ 1 .2 M $ 1 .4 M $ 1 .6 M $ 1 .8 M $ 2 .0 M $ 2 .2 M $ 2 .4 M $ 2 .6 M $ 2 .8 M

Properties For Sale Contracts Pending 0 5 10 15 20 25 30 35 $ 0 K $ 2 0 0 K $ 4 0 0 K $ 6 0 0 K $ 8 0 0 K $ 1 .0 M $ 1 .2 M $ 1 .4 M $ 1 .6 M $ 1 .8 M $ 2 .0 M $ 2 .2 M $ 2 .4 M $ 2 .6 M $ 2 .8 M Sold Off-Market

San Juan Island

Number of Listings For Sale vs. Pending Contract

San Juan Island

Num Sold vs. Off-Market (Last 6 mos.)

1 Real Market Reports

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Analysis of the absorption rate indicates an inventory of 10.3 months based on the last 6 months of sales. This estimate is often used to determine how long it would take to sell off the current inventory of properties if all conditions remained the same. It is significant to mention that this estimate does not take into consideration any additional properties that will come onto the market in the future.

might be wondering why average days on market (DOM) is important. This is a useful measurement because it can help us to determine whether we are in a buyer's market (indicated by high DOM), or a seller's market (indicated by low DOM). Active listings (properties for sale) have been on the market for an average of 312 days. Analysis of sold properties for the last six months reveals an average sold price of $591,383 and 286 days on market. Notice that properties in the $1.4M - $1.6M price range have sold quickest over the last six months. The recent history of sales can be seen in the two charts below. The average sold price for the last 30 days was $590,694 with an average DOM of 50 days.

Since the recent DOM is less than the average DOM for the last 6 months, it is a positive indicator for demand. It is always important to realize that real estate markets can fluctuate due to many factors, including shifting interest rates, the economy, or seasonal changes.

Ratios are simple ways to express the difference between two values such as list price and sold price. In our case, we typically use the list-to-sale ratio to determine the percentage of the final list price that the buyer ultimately paid. It is a very common method to help buyers decide how much to offer on a property.

"The average list-to-sales ratio for this area is 93.3%."

0 200 400 600 800 1,000 1,200 1,400 $ 0 K $ 2 0 0 K $ 4 0 0 K $ 6 0 0 K $ 8 0 0 K $ 1 .0 M $ 1 .2 M $ 1 .4 M $ 1 .6 M $ 1 .8 M $ 2 .0 M $ 2 .2 M $ 2 .4 M $ 2 .6 M $ 2 .8 M Sold For Sale $0K $200K $400K $600K $800K $1000K

Mar Apr May Jun Jul Aug

0 100 200 300 400 500

Mar Apr May Jun Jul Aug

San Juan Island

Average Days on Market (DOM)

San Juan Island

Average Days on Market (Sold)

San Juan Island

Average Sold Prices

2 Real Market Reports

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Date Range = 02/01/2016 to 08/01/2016 Data believed to be accurate but not guaranteed.

Price Range _Total Num Avg DOM Min. Max. List to Sales

For Sale [1] Sold in the Last 6 Months [4]

Absorption Rate Off-Market in the Last 6 Months

Mos. Avg Sold Price Total Num Pending Ratio Total Num Total Num Avg DOM Avg Orig List Price Avg List Price Contracts Pending $0 $199,999 5 414 $ 63,180 0 0.0% Avg List Price 1 6 514 $ 105,357 $ 126,650 $ 116,583 92.1% 5.0 $200,000 $399,999 22 204 $ 312,157 10 31.3% 7 31 258 $ 356,187 $ 338,542 $ 321,923 95.1% 4.3 $400,000 $599,999 34 200 $ 520,934 9 20.9% 6 20 214 $ 559,335 $ 521,080 $ 489,004 93.8% 10.2 $600,000 $799,999 28 280 $ 719,286 3 9.7% 9 15 284 $ 738,923 $ 703,727 $ 674,713 95.9% 11.2 $800,000 $999,999 18 497 $ 895,333 2 10.0% 2 4 325 $ 964,750 $ 902,250 $ 861,250 95.5% 27.0 $1,000,000 $1,199,999 5 180 $ 1,130,000 1 16.7% 0 0 - - - -$1,200,000 $1,399,999 7 364 $ 1,297,000 1 12.5% 0 2 210 $ 1,344,500 $ 1,289,000 $ 1,301,350 101.0% 21.0 $1,400,000 $1,599,999 6 590 $ 1,548,167 0 0.0% 1 3 135 $ 1,631,667 $ 1,598,000 $ 1,505,000 94.2% 12.0 $1,600,000 $1,799,999 5 320 $ 1,731,800 2 28.6% 2 1 178 $ 2,300,000 $ 2,300,000 $ 1,775,000 77.2% 30.0 $1,800,000 $1,999,999 3 432 $ 1,851,667 0 0.0% 1 0 - - -1 - - -1,321 $ 3,900,000 $ 2,375,000 90.5% 6.0 $2,200,000 $2,399,999 2 276 $ 2,275,000 0 0.0% 1 521 $ 2,495,000 2,150,000 $ 2,495,000 $ $ 2,200,000 88.2% 12.0 $2,400,000 $2,599,999 1 105 0 - - -31 17.5% 33 $2,600,000 $2,799,999 1 747 $ 2,600,000 0 0.0% Market Summary >>> 146 312 $ 1,168,960 85.7% 3,500,000 $ - -48.0 -- - -3,500,000 $ 10.3 85 286 $ 677,441 $ 633,920 $ 591,383 93.3% 0 0.0% 20.0% 3 0 1 2,100,000 $ 1 50.0% 0 556 $ 3,000,000 -$2,800,000 + 8 504 $ 7,442,500 2 0 0 1 $2,000,000 $2,199,999 1 2,495,000 $ 67

Status = [1] New, Back on Market, Active; [2] Pending, Pending Inspection, Pending Feasibility; [3] Expired, Cancelled; [4] Sold Area = 900 - San Juan Island

PropertySubType = Residential, Condominium, Manufactured Homes 3 Real Market Reports

RealMarketReports.com

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a. Number Active: The number of listings for sale which are currently being marketed but do not yet have a purchase agreement.

b. Average Days on Market (DOM): The average marketing period of currently active listings. This does not account for some listings which have had a previous listing period, but were re-entered as a new listing.

c. Average List Price: The average price that a seller is currently asking.

2. CONTRACTS PENDING

a. Number Pending: The number of current listings for which a contract has been signed but has not yet closed. b. Pending Ratio: Sometimes called a “list-to-pending ratio”. This is a measure of how fast properties are going under

contract vs. how fast they are being listed.

Pending Ratio = P (Number of Pending Listings) A+P (Number of Active + Pending) (P) represents properties that buyers have chosen

(A+P) represents the entire pool from which they have chosen

3. OFF-MARKET

a. Number Off-Market: The number of listing agreements that have failed to close in the last 6 months. Some owners may choose to reoffer their property for sale.

4. PROPERTIES SOLD

a. Number Sold: The number of properties that have gone to a closing in the last 6 months.

b. Average Days on Market (DOM): The average marketing time it has taken properties to sell in the last 6 months. c. Average Original List Price: The average price at which a sold property was originally marketed.

d. Average List Price: The average price at which a sold property was marketed just prior to selling. e. Average Sold Price: The average price for which a property sold.

f. List to Sales Ratio: The percentage of the list price that the buyer ultimately paid for the property.

List to Sales Ratio = Average Sold Price Average List Price

5. OTHER

a. Absorption Rate / Months of Inventory: An estimate of how fast listings are currently selling measured in months. For example, if 100 properties sell per month and there are 800 properties for sale - there is an 8 month supply of inventory before counting the additional properties that will come on the market.