Fourth Quarter Market Review for Kitsap County

Kitsap County’s real estate market is still going strong, and here’s a look at how we closed out 2021. Just as in previous years, our local market slowed down during the holiday season. There are still many eager home buyers wanting to live in Kitsap County, but fewer homes were for sale during the fourth quarter. Continued low inventory means that our market still favors sellers.

The Latest on Sold and Pending Homes

When viewing the last five quarters in the graph above, you can see that we had our usual growth trend in the summer. And, as we moved into colder months, we saw the seasonal slowdown. Home prices continue to rise due to high demand, and sold homes are still outpacing pending listings. The result is a strong seller’s market. In the 4th quarter of 2021, we had 1,291 closed sales, a 4.9% decrease when compared to 2020’s fourth quarter.

Our Strong Seller’s Market

With the new era of remote work and many wanting the peaceful, connected lifestyle that Kitsap offers, demand in our area remains strong. If you’re a local resident and looking to move, it’s a great time to sell. If you’re a buyer wanting to move here, learn about Kitsap County in our free digital guide. And, if you have any questions our local experts are here to help.

A Look at Listing Price vs. Sale Price

Although most buyers are still able to pay at or above the listing price for a home in Kitsap County, there just aren’t enough homes available right now. Demand is pushing the cost of housing even further in favor of sellers. In our 4th quarter, we saw an 11.3% increase year over year in the average sale price in Kitsap County, putting it at $613,000. While it is a great time for sellers, many are now voicing affordability concerns.

Insights from Our Chief Economist

Looking at the broader real estate market, we have insights from Windermere’s Chief Economist, Matthew Gardner. In his most recent Monday with Matthew, Gardner shared his market forecast for 2022: “If everything goes according to my plan, you should expect to see the housing market start to move towards some sort of balance next year, but I am afraid that it will still remain out of equilibrium until at least 2023.”  This is an important reminder that the transition back to a balanced market will be a gradual shift.

While Gardner ensures us that he “doesn’t see a housing bubble forming,” he is concerned about housing affordability. There is definite cause for concern among the millennial generation as they start to settle down more and more. Millennials are currently the largest group in the generational real estate market, so it will be interesting to see where affordability and demand intersect.

In his video, Gardner concluded by saying, “demand for ownership housing remains remarkably buoyant and, in fact, it is quite likely that demand may actually increase with the work from home paradigm that will start to gain momentum next year.”  In light of this, real estate continues to be an excellent investment.