November 2021 Kitsap County Real Estate Statistics
Kitsap real estate prices continue to rise, as median home values are still up over 13.5% year over year. And inventory is down 27% (just 2 weeks worth of inventory). There still aren’t enough to keep up with the number of buyers trying to enter the market. Mortgage interest rates are still historically low — and new construction is booming. Well-priced homes often sell in 5 days or less, and most listings are sold in less than 3 weeks.
For sellers, the opportunity to get the absolute top dollar values may be slipping away. We saw the lowest inventory this past spring in March-May, and the fewest number of new listings. Home values are still holding strong, and buyer demand remains high, but it’s not as frenzied as we saw in recent months. Brokers have noticed a higher volume of reduced list prices in the past month or two.
So what does that mean for buyers and sellers? Here are some answers to common questions (or scroll down for detailed stats).
Is the housing market going to crash?
No, that’s not likely to happen any time soon (at least, not like we saw in 2008). Experts predict a strong spring and summer market, but we might start seeing a “market correction” sometime in the coming year. The rate of these price increases isn’t sustainable, so it might be the best-ever time for potential sellers to maximize their proceeds. The 2008 market crash was caused by poor lending practices. Today, our lending practices are better, and we have a true shortage of housing to meet the pent-up buyer demand.
Is it a good/bad time to sell my house?
Yes, it’s still a great time to sell your home! If you have been thinking of selling, please take advantage of the best home values in history and call me to make a plan. We can get your home on the market soon to maximize your net proceeds. That being said, you should always do what makes the most sense for your family; whenever you decide the time is right to sell, we will adjust our strategy based on your top priorities. The longer you wait to sell, the more likely you are to see the market shift back in favor of buyers.
Should I wait to buy until prices go down?
This questions is tough. As your agent, I always want to act in your best interest. And truthfully, market prices are still high right now. If you’re a cash buyer, you might see some price improvement by waiting. But if you’re financing a home purchase, interest rates are still incredible right now — which means you have more buying power (your budget goes a lot further). Yes, prices might level out a bit over time; but interest rates are expected to rise a bit, and your situation may not be any different due to higher mortgage costs. Finally, building equity in a home is usually preferable to renting, and home values tend to hold their value if you can stay put for a while. Every situation is different, but both buyers and sellers can be successful in this market.
Why is Kitsap County a seller’s market?
Inventory is currently very low. A balanced market has 4-6 months of inventory. In our market, without any new listings, we’d sell out of homes in less than 1 month. Single family homes are selling faster than ever because so many buyers are in the market.
How common are multiple offer situations?
For homes that are priced right, you should expect to see multiple offers and high competition, as the bidding wars continue. The most competitive buyers often have to be aggressive, offering well over asking, sometimes waiving inspections, making earnest money non-refundable, offering the seller more time to move out, or agreeing to pay the difference in cash if the appraisal doesn’t match the sale price. Not every negotiation is this tough; but you should generally expect competition.
What restrictions are in place regarding COVID-19 precautions?
Brokers and their clients must adhere to any requirements or restrictions imposed by the seller of a property, including required appointments, mandatory face coverings, capacity limitations, or other instructions. Listing brokers should detail any requirements in the listing and post signs at the property regarding any specific instructions (e.g. face covering required to enter).
Why are there so many more buyers right now?
COVID-19 has forced many people to spend more time at home, and reevaluate their needs. In addition to accommodating remote work and school, residents are spreading out from urban centers (like Seattle) and moving into more suburban communities like Kitsap County. So while the winter is normally slower for Kitsap County real estate, we saw intense buyer competition in the residential market. That means buyers are paying well over asking price, waiving inspections and financing contingencies, and making earnest money non-refundable to stay more competitive. Low interest rates are attracting more and more renters, who find a fixed-rate mortgage to be more affordable than their ever-increasing rent.