Executive Summary: The demand for housing in Kitsap County is high, fueled by job growth, low mortgage interest rates, and population increases. But there is a severe shortage of available inventory, especially for entry-level homes. Despite increasing home values and buyer demand, home owners are staying put… and new construction can’t keep up. Overall, that means fewer home sales, as potential first-time buyers get priced out of the market. As the real estate market tries to level itself out, Kitsap County will likely see a modest increase in both home values and rent costs in the coming year.
In Kitsap County, the demand for housing will stay high—especially for lower-priced homes.
Many millenials are entering the market to buy homes for the first time, due to strong job growth, low mortgage interest rates, and increasing rent costs. Up to 50% of new mortgages will be issued to millenials, mainly for entry-level homes.
Many homeowners will stay put, contributing to the severe inventory shortage.
According to Redfin, today’s homeowners are typically remaining in their homes for 13 years, five years longer than they did in 2010. This is contributing to the inventory shortage, as the available housing market has dwindled to its lowest level in decades. Learn why homeowners are holding onto their properties.
Home values will continue to rise, but level out in comparison to years past.
Home values in Kitsap County have risen steadily in the last 5 or 6 years, driven largely by supply and demand—more buyers and not enough homes. But when homeowner values appreciate, some first-time home buyers get priced out of the market altogether. Even though mortgage interest have been low, affordability remains a key concern. Over-priced homes won’t sell very quickly, as the market tries to self-adjust. Click here for the latest monthly housing market update and statistics for Kitsap County real estate.
Kitsap County will continue to see strong job growth and a good economic outlook.
Kitsap County is poised for continued economic growth, thanks to a strong labor market and consumer spending. Employment has grown every year since 2012, faster than the national average. Unemployment remains at its lowest mark since 1990. The steady military presence helps fuel the economy, with over 15,000 active military personnel, 18,000 civilians, and 500 federal contractors.
The population will continue to grow, faster than construction can keep up with the demand.
Our population has grown about 8% since 2010. Kitsap County is beautiful and quiet. And it offers more affordable housing than King County and other bustling regions near Puget Sound. Plus, commuter options are expanding with the Fast-Ferry system. That may be bad news for traffic and core infrastructure services, but a strong economy is good news for our community’s livelihood.
Nationally, home builders are expanding production to address the pent-up demand for additional housing. But local contractors are slammed, permits and inspections get delayed, and it’s getting harder to acquire or develop land. It will take years to construct enough new homes to provide relief.
Technology will continue to disrupt and evolve the real estate industry.
More than 90% of today’s buyers search for homes online. Buyers can use these smart tools to filter MLS listings by price, location and home features, create email alerts for new properties as soon as they hit the market, save their favorite homes, and get instant market reports or seller valuations. Savvy home buyers know that you have to act fast, and be prepared, to score a good house in a seller’s market.
For sellers, it’s not enough to rely on old-school marketing and traditional selling tactics. For maximum exposure to qualified buyers, using digital advertising is crucial. That’s why my marketing plans focus heavily on advanced audience targeting and digital media—at no additional cost to sellers. Any agent can blast some paid ads on Facebook, Google and Instagram; but as a media publisher, I specialize in digital advertising techniques that get you top-dollar offers. Call or text me at 360-979-6411 if you’re interested in a free consultation to discuss my marketing plan for sellers.
Are we in a real estate housing bubble?
While the Great Recession in the United States lasted from December 2007 to June 2009, it took many years for the economy to recover. That recession was driven in large part by the housing bubble, which burst when the housing supply out-paced demand. Unlike that time period, we are NOT currently in a housing bubble, as the demand far exceeds the expected supply. And even if a recession does hit the United States soon, remember that real estate values still increased during 3 of the last 5 recessions. If you’ve been thinking about making a change, 2020 is a great year to achieve your real estate dreams!
Join My FREE VIP Newsletter
My helpful articles, hyper-local news, and community event highlights will keep you in the know. Get the best local real estate resources in Kitsap County, sent straight to your inbox each week.
- Fun Kitsap community events and family activities
- Practical tips and local resources for homeowners
- Expert real estate advice and housing market trends
- FREE access to MLS Listings and custom email alerts
- Helpful Kitsap County real estate guides and tools
- PLUS… the best (or worst?) dad jokes!
- 100% Secure. Unsubscribe at any time.