Summer 2024 is poised to be a dynamic season for Kitsap County’s housing market. The county, known for its scenic beauty and proximity to Seattle, continues to attract a mix of buyers, from first-time homeowners to retirees seeking a peaceful yet accessible lifestyle.

Here’s an in-depth look at the factors shaping the housing market in Kitsap County this summer:

Economic Factors

1. Interest rates: The Federal Reserve’s recent stance on interest rates suggests a stabilization, which is likely to maintain mortgage rates at relatively moderate levels compared to the highs seen in previous years. This will encourage both buyers and sellers to engage more actively in the market.
2. Job market: Kitsap County benefits from a diverse economy, including military, healthcare and technology sectors. With continued job growth and low unemployment rates, the economic stability of the region supports a healthy demand for housing.
3. Inflation: While inflation remains a concern nationally, Kitsap County has managed to maintain a cost of living that, though rising, remains competitive compared to the Seattle metro area. This relative affordability is a significant draw for prospective buyers.

Housing demand and supply

1. Inventory levels: The housing inventory in Kitsap County is expected to see a moderate increase as more homeowners look to capitalize on favorable market conditions. However, the supply is still likely to be outpaced by demand, particularly in desirable areas such as Bainbridge Island and Silverdale.
2. New construction: Ongoing residential construction projects will add to the inventory, especially in suburban areas and planned communities. For example, new home construction off 303 in the Central Valley area. McCormick Village & Park buildings are still going strong with new homes continuously being completed. However, supply chain issues and labor shortages might slow the pace of new home completions.
3. Buyer demographics: The buyer profile continues to be diverse, with millennials entering the market as first-time buyers, Gen Xers looking for larger homes for their growing families, and Baby Boomers seeking to downsize or find retirement properties. Some families are looking to expand into multi-generational homes. Additionally, remote work trends are attracting out-of-state buyers seeking a better quality of life.

Price trends

1. Home prices: Home prices in Kitsap County are expected to continue their upward trend but at a more tempered pace compared to the post-pandemic surge. The median home price is likely to see a year-over-year increase of around 5 to 7 percent.
2. Affordability: While prices are rising, Kitsap County remains more affordable than neighboring King County. This affordability, combined with high quality of life, will continue to drive demand.

Market activity

1. Sales volume: The volume of home sales is projected to increase slightly as both buyers and sellers feel more confident in the stable interest rate environment. However, the pace will be moderated by the limited inventory.
2. Competition: The market will remain competitive, especially for homes in good condition and prime locations. Buyers should be prepared for bidding wars and homes selling above the asking price, though the intensity of competition may lessen compared to the peak of the market frenzy. Being pre-approved through a lender prior to looking at homes is a plus, as well working with a trusted Real Estate Broker.

Key areas to watch

Bainbridge Island – Continues to be a premium market with high demand and limited supply with an average sale price this year currently sitting around $2,369,000. Expect significant competition and higher price points.

In June of this year, the number of for sale listings was up 58% from one year earlier and up 29.5% from the previous month. The number of sold listings decreased 10.6% year over year and increased 35.5% month over month. The number of under contract listings was down 25% compared to the previous month and up 3.1% compared to previous year.

The Months of Inventory based on Closed Sales was 1.9, up 75.2% from the previous year. The Average Sold Price per Square Footage was down 19.1% compared to the previous month and down 8.2% compared to last year. The Median Sold Price increased by 16% from last month. The Average Sold Price also decreased by 16.4% from last month.

Based on the 6-month trend, the Average Sold Price trend was “Neutra,l” and the Median Sold Price trend was “Appreciating.” The Average Days on Market showed a downward trend, an increase of 30.8% compared to the previous year. The ratio of Sold Price vs. Original List Price was 99%, a decrease of 2% compared to the previous year.

North Kitsap – These areas are likely to see robust activity due to their balance of amenities, good schools and relatively affordable housing options.

In June of this year, the number of for sale listings was up 13.5% from one year earlier and down 3.4% from the previous month. The number of sold listings decreased 3.6% year over year and decreased 5.3% month over month. The number of under contract listings was down 21.3% compared to the previous month and down 17.2% compared to the previous year.

The Months of Inventory based on Closed Sales was 1.6, up 22.7% from the previous year. The Average Sold Price per Square Footage was down 5.1% compared to previous month and up 0.6% compared to last year. The Median Sold Price increased by 7.7% from last month.

The Average Sold Price also increased by 3.1% from last month. Based on the 6-month trend, the Average Sold Price trend was “Appreciating,” and the Median Sold Price trend was “Appreciating.” The Average Days on Market showed a downward trend, a decrease of 28% compared to the previous year. The ratio of Sold Price vs. Original List Price was 99%, a decrease of 1% compared to the previous year.

Central Kitsap – The Central Kitsap real estate market is experiencing a surge in activity as the number of homes being listed continues to rise, making it an opportune time for both buyers and sellers to make their move!

In June of this year, the number of for sale listings was up 90.8% from one year earlier and up 23% from the previous month. The number of sold listings decreased 24.5% year over year and increased 1.4% month over month. The number of under contract listings was down 14% compared to the previous month and up 23.3% compared to the previous year.

The Months of Inventory based on Closed Sales was 2.5, up 150% from the previous year. The Average Sold Price per Square Footage was the same as compared to the previous month and up 6.5% compared to last year. The Median Sold Price decreased by 3% from last month.The Average Sold Price also increased by 1.3% from last month.

Based on the 6-month trend, the Average Sold Price trend was “Neutral,” and the Median Sold Price trend was “Neutral.” The Average Days on Market showed a neutral trend, an increase of 14.7% compared to the previous year. The ratio of Sold Price vs. Original List Price was 99%, was the same compared to the previous year.

Port Orchard and Bremerton – Offer more affordable options and are expected to see increased interest from first-time buyers and those looking for investment properties.

In June of this year, the number of for sale listings was down 11.9% from one year earlier and down 2.8% from the previous month. The number of sold listings increased 6.6% year over year and decreased 1.5% month over month. The number of under contract listings was down 7.1% compared to the previous month and up 7.4% compared to the previous year.

The Months of Inventory based on Closed Sales was 1.3, down 18.9% from the previous year. The Average Sold Price per Square Footage was up 2.5% compared to the previous month and up 2.9% compared to last year. The Median Sold Price decreased by 4.3% from last month. The Average Sold Price also decreased by 1.7% from last month.

Based on the 6-month trend, the Average Sold Price trend was “Neutral,” and the Median Sold Price trend was “Neutral.” The Average Days on Market showed a downward trend, a decrease of 31% compared to the previous year. The ratio of Sold Price vs. Original List Price was 99%, was the same compared to the previous year.

Conclusion

The summer of 2024 promises to be an active season for the Kitsap County housing market. While challenges such as limited inventory and rising prices persist, the overall economic stability and appeal of the region suggest a positive outlook.

Buyers should be prepared for a competitive market, and sellers can expect to see strong interest in well-priced and well-located properties.

For prospective buyers and sellers, staying informed and working with experienced local real estate professionals will be key to navigating this dynamic market effectively.