Poulsbo Place, Kitsap County WA

Kitsap County Housing Market Update

Kitsap County is a seller’s market.


Easier for Buyers

Easier for Sellers
Buyer's
Market
Balanced
Market
Seller's
Market

Kitsap County has an increasing inventory of homes for sale. But the buyer demand is still greater than the supply of homes. This housing shortage leads to increasing home prices, as buyers may still face some competition. Well-priced houses sell relatively quickly, sometimes in just days or weeks. The market has been favorable to sellers, and buyers have less negotiating power.

However, things are shifting quickly back toward a more balanced housing market. Rising interest rates have reduced the borrowing power of potential buyers, and sellers can’t expect the top sale prices we saw earlier in 2022.

Kitsap County Housing Market Trends

Last Updated: November 2022
Residential Homes (excluding land/condos)

Kitsap Home Values & Current Inventory

Monthly Highlights

  • The median sale price is $510,500 (up 0.9% compared to October 2021). Homes typically sell for 97.7% of the original list price (down -4.3% compared to last year).
     
  • There were 300 homes sold in October (down -32.1% compared to last year). 313 new listings came on the market (down -29.0% compared to last year).
     
  • New listings are typically on the market for 20 days before an offer is accepted, compared to 6 days last year. Sellers might expect to have around 10 buyer showings before going under contract (down -16.7% compared to last year).
     
  • There were 631 active listings in October (inventory was up 61.4% compared to last year). Kitsap County has 1.8 months supply of inventory (up 80.0% compared to last year).

A balanced market has 4-6 Months Supply of Inventory (MSI). If no new listings entered the Kitsap real estate market, we’d absorb the current inventory in just 1.8 months. That means sellers have more negotiating power than buyers.

Kitsap Housing Inventory

Price RangeMonths SupplyYear Over YearMarket Type
Under $400K1 Months  150%Hot Sellers Market
$400K – $600K1.4 Months  27.3%Hot Sellers Market
$600K – $800K2.2 Months  37.5%Sellers Market
$800K – $1M2.9 Months  107.1%Sellers Market
$1M – $1.5M3 Months  150%Slight Seller Advantage
$1.5M Plus3.2 Months  220.%Slight Seller Advantage

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Housing Market Report
Kitsap County
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Estimated Mortgage Interest Rates for Kitsap County

*Disclaimer: The calculations derived from this mortgage rate widget are for illustrative purposes only. Actual loan interest rates and payments are based on many factors including market conditions, points, loan amount, loan-to-value, borrower’s credit, property type and location and occupancy, the loan-to-value ratio, etc. There are no assurances that a purchaser will qualify for any loan or financing. Forecasts, projections and other predictive statements should never be relied upon as financial or legal advice.


Kitsap Housing Market Predictions

The market has cooled down a bit compared to recent months. The U.S. housing market peaked a while ago. As mortgage interest rates rise, buyers are suddenly realizing that their money doesn’t go as far now. New listings haven’t been getting as many offers. And there’s been more listings with price reductions lately. While prices are still high, sellers should not expect their houses to sell for far more than they are worth.

Will the housing market crash?

Industry experts are not predicting a housing market crash. We have a real housing shortage, and it will take a few years for new construction to catch up to the demand.

In 2008, the market was doomed because of excessive borrowing (too much debt). But today’s mortgage standards are much stricter as a result. Most buyers are well-qualified and most homeowners have equity in their homes. So the risk of foreclosure is far less for most people. And the cost of rent keeps going up nationwide, making a fixed mortgage more and more attractive.

A shift is happening (as predicted!).

Rising interest rates, inflation, and an economic recession will help bring about a slowdown, or “market correction.” We are seeing a shift back toward a more balanced market. That means buyers will have more inventory to choose from, and homes may take weeks or months to sell. Home values in Kitsap County may flatten out or even decrease, but are unlikely to crash. In fact, during many previous economic recessions, home values still appreciated.

Real estate continues to be an excellent investment, especially if you are prepared to keep a home for at least a few years (and ride out any potential dips).


Kitsap County Area Guides

Community Overview


Kitsap Housing Market Reports

Real Estate Trends & Statistics

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