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BAINBRIDGE REPORTpresented by Dennis Paige

2013

The Bainbridge ReportDENNIS PAIGE

Page 2

Welcome to the Bainbridge Report, our yearly in-depth review of the Bainbridge Island real estate market. This report uses market-wide data from the Northwest Multiple Listing Service to compare transactions which closed in 2013 to that of previous years.

2013 recorded sales increased by 8.7%, rising to 507 closings, a number not seen since 2005. A strength-ening 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 increasingly common as we move into 2014.

Inventory continues to be a struggle, with Bainbridge experiencing year-over-year inventory declines for the last seven quarters. In 2013 alone, inventory plummeted -35% year-over-year and days on the market dropped to 76 days. Despite depressed inventory levels, buyer activity has been intense with sales not seen at this level in 8 years.

Market wide median price rose slightly to $527,000 while the average price declined from 2012, although is up from 2011. The upper mid-range market overtook the lower mid-range market to represent the largest market share, increasing this year to 44% of the market, up from 36% in 2012. Prices are project-ed to continue their upward trajectory as pressures from low inventory and increased demand create sales over asking price in some situations.

The luxury market saw a decrease from 2012, from 50 transactions to 39 in 2013. Sales in the $1M-$1.2M range represented a greater proportion of the luxury market in 2013, while the steepest decline came in the $2M+ category, with only 3 homes selling in 2013, down from 8 in 2012. The condo market saw a resurgence with condo sales up, especially in the $500K+ range which increased over 300% in 2013.

If you have any questions or would like to talk about your specifi c needs, feel free to contact me any time at dennis.paige@sothebysrealty.com or just give me a call at 206-920-3824. For a digital copy of this report please visit www.realestateonbainbridge.com/market.

Sincerely,

Dennis PaigeDennis PaigeFounding Director

Equal Housing Opportunity. Each o� ce is independently owned and operated, Realogics Sotheby’s Interna-tional Realty - 271 Madison Ave S. Bainbridge Island, WA 98110. All information regarding property for sale is from sources deemed reliable, but Realogics Sotheby’s Intl. Realty makes no warranty or representation of accuracy and is subject to change without notice.

The Bainbridge ReportDENNIS PAIGE

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Historically low inventory has made buying diffi cult for many looking to take advantage of low interest rates. Overall sales were up for the 5th year in a row, to levels not seen since 2005. Page 4

2013 Sales - Market Wide

The West side of the island had the fewest sales of any area in 2013, representing only 74 total. Page 6

West Side

The North end has the highest average sale price with homes in the $450-850K range

representing 48% of total sales and the most sales over $1M at 16. Page 6

North End

Winslow had the highest number of sales of any other area (138) and has benefi ted from the resurgence of the condo market

in 2013. Page 7

Winslow

The South end is second only to the North for sales over $1M, including

2 over $2M. South Beach had a resurgence this year with 4 sales

over $1M, all within a quarter mile of each other.. Page 7

South End

The Bainbridge condo market strengthened in 2013, especially the above $500K range, which jumped over 300% from 2012 as buyers looked to downsize but not at the sacrifi ce of comfort. Page 6

Condo Market

Sales in the luxury market decreased in 2013, down from 50 transactions

in 2012 to 39 in 2013. Page 7

Luxury Market

INTERACTIVE MAPView sales in your neighborhood

bit.ly/soldmap

key: 2013 sales

The Bainbridge ReportDENNIS PAIGE

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Bainbridge Island Market Wide

Sales - Closings

There were 507 closed sales in 2013, with 414 residential units and 93 condo units sold. The year’s strong sales performance re-sulted in the highest number of closed sales since 2005 and with it the return to a strong market. Sales have been climbing since the crash of 2008 with sales up 118% over our 2008 low and 8.7% higher than 2012.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Number of Sales 453 466 532 630 517 505 465 232 269 308 324 466 507 Average 436 436 436 436 436 436 436 436 436 436 436 436 436

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Inventory

Inventory continued an established decline, with 35% fewer listings than a year prior. Bainbridge Island has experienced year-over-year inventory declines for the last seven consecutive quarters. Average days on the market have dropped 28% year-over-year, to 76 days in 2013. This continues to present a signifi cant problem for potential buyers looking to take advantage of low interest rates.

2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Total Listings 263 248 203 203 196 153 104 105 136 112 75 New Listings 66 37 17 54 66 42 9 61 63 41 12 Percent New Listing 25% 15% 8% 27% 34% 27% 9% 58% 46% 37% 16%

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The Bainbridge ReportDENNIS PAIGE

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2011

2012

2013

$0-$250k $250-$450 $450-$850 $850-$1.3M $1.3-$2M $2M+

Sales by Price Category

The upper mid-range market ($450-$850K) overtook the lower mid-range market ($250-$450K) to represent the largest market share, increasing this year to 44% of the market, up from 36% in 2012. This year 4% of sales closed for over $1.3M down from 6% in 2012.

2007 2008 2009 2010 2011 2012 2013 Median Price $680,000 $589,500 $546,000 $541,000 $493,000 $524,650 $527,000 Average Price $820,569 $749,970 $662,668 $640,701 $581,855 $634,809 $602,500

$400,000

$450,000

$500,000

$550,000

$600,000

$650,000

$700,000

$750,000

$800,000

$850,000

Sales

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Bainbridge Island Market Wide

Historical Sales Price

2013 witnessed a slight increase in median home price, but a decrease in average price. Median price increased 1/2% to $527K, while average price decreased 5% from 2012, primarily due to an exceptionally strong luxury market in 2012 which included a sale for $3.4M.

The Bainbridge ReportDENNIS PAIGE

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North End

West Side

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

$0-$250k

$250-$450

$450-$850

$850-$1.3M

$1.3-$2M

$2M+

Sales by Price

The North end saw the most sales in the $450-850K range, with 61 sales in 2013 representing 48% of total sales in the area. It also had the most sales in the $850K-1.3M range out of any other area on the island, with 18 in 2013. The north has also been a part of some signifi cant sales, including 4 in the $1.3-2M range and one for $2,350,000 on Manzanita Road.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

$0-$250k

$250-$450

$450-$850

$850-$1.3M

$1.3-$2M

$2M+

The West side of the island had the fewest sales of any area in 2013, representing only 74 total. 47% of the sales were in the $450-850K range with fewer in the $250-$450K range than any other area. Due to some beautiful waterfront options, it did see 6 signifi cant sales over $1M.

Condo MarketThe Bainbridge condo market strengthened in 2013, especially the $500K+ range, which jumped over 300% from 2012 as buyers looked to downsize, but not at the sacrifi ce of comfort.Overall sales were up from 80 transactions in 2012 to 93 in 2013, with the gains concentrated in the upper and lower ends. Sales in the $500K+ category in-creased from 9 transactions in 2012 to 28 in 2013, with the top sale at $1M, up from $725K in 2012. Sales in $0-200K range increased from 12 to 21 transactions, seeing more movement in the “fi rst time buyer” range.

Sales by Price

2012 2013

$0-$200k

$200-$300k

$300-$400k

$400-$500k

$500k+

INTERACTIVE MAP - View sales in your neighborhood - bit.ly/soldmap

The Bainbridge ReportDENNIS PAIGE

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Winslow

South End

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

$0-$250k

$250-$450

$450-$850

$850-$1.3M

$1.3-$2M

$2M+

Winslow tends to have more sales in the lower and middle price points due to density and lack of waterfront. This area has the highest proportion of homes in the $0-250K range, which is representative of the many condos in the area, and the highest number of sales of any other area (138 total). It did see three signifi cant sales in 2013, with 2 condos selling for $1M each and a home on Stetson Place selling for $1.8M.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

$0-$250k

$250-$450

$450-$850

$850-$1.3M

$1.3-$2M

$2M+

The South end had the fewest sales in the $0-250K range and is second only to the North for sales over $1M, including 2 over $2M. South Beach

had a resurgence this year with 4 sales over $1M, all within a quarter mile of each other.

Luxury MarketThe Bainbridge luxury market is defi ned as sales over $1M, which represents approximately the top 10% of the market. Sales in the luxury market decreased in 2013, down from 50 transactions in 2012 to 39 in 2013. Sales in the $1M-$1.2M range represented a greater propor-tion of the luxury market in 2013, although the number of transactions were fl at at 15. The steepest decline came in the $2M+ category, with only 3 homes selling in 2013 down from 8 in 2012. The top sales price in 2013 was $2,350,000, down from $3,400,000 in 2012.

Sales by Price

Sales by Price

2012 2013

$1M-$1.2M

$1.2M-$1.4M

$1.4M-2M

$2M+

INTERACTIVE MAP - View your neighborhood - bit.ly/soldmap

SIGNIFICANT SALES

Classic CraftsmanA quiet tree-lined country lane and a covered front

porch welcome you to this delightful Craftsman style home nestled on nearly an acre above South Beach.

$770,000

Rustic WaterfrontA timeless home beautifully situated on the west

shore of Bainbridge where a rustic style and an Asian aesthetic combine to create a home unlike any other.

$1,285,000

Nantucket GetawayAll day sun, marine and mountain views, salt air

breezes…plus a shingled beach house with all the charm and coastal style of a Nantucket getaway!

$1,499,000

Puget Sound VistasBeautifully detailed shingled architecture accented by custom stone work with spacious, open interiors

and a chef’s kitchen beyond compare.

$1,165,000

Inspired by the MediterraneanOne of a kind style by noted architect Stuart Silk

with 2000-bottle wine cellar, 2.6 acres of privacy and 151’ of waterfront with private tram to the beach.

$1,395,000

Extraordinary Northwest RetreatSheltered in an oasis of lush gardens and patios, with over 100’ of low bank waterfront and spacious light-

filled interiors…perfect for entertaining!

$2,000,000

Contemporary WaterfrontJust steps from water’s edge, with straight-on views of Mt Rainier. Perfect for those seeking one-level waterfront living and unique contemporary style.

$1,323,000

Artistic RetreatSecluded above Port Blakely, this custom home

offers nearly 5 acres of privacy and a wonderfully unique contemporary style.

$775,000

Elegance in Port BlakelyNestled on Country Club Road with nearly 100’ of medium bank waterfront and spacious interiors, this

is an island retreat for everyday living!

$1,375,000

Bainbridge Island, WA