Kitsap’s Market: First Quarter, 2022

Kitsap County’s real estate market had a solid first quarter. In 2021, we saw strong buyer demand and low inventory, and that continues to be the case. It’s still a seller’s market, with many homes continuing to sell above the asking price.  We’ve compiled key highlights and market trends below.  And, if you have any questions our local experts are here to help.

News on Sold and Pending Homes

In the graph above, you can see a similar rise reflected in market volume that we saw this time last year.  This follows the typical real estate market trend of a cooler first quarter before the market heats up in the summer.  Sold homes still outpace pending listings and home prices are still increasing as a result of high demand. During 2022’s first quarter, 994 homes were sold. That’s up 10.7% year-over-year, showing more market activity.

Kitsap’s Market Still Favors Sellers

As supply remains low, sellers can list with confidence. Buyers will need to be prepared for competition. We do expect to see more homes come on the market as construction ramps back up, supply chain issues decrease, and the pandemic wanes.

Listing Price vs. Sale Price

Kitsap’s market still has many eager buyers and during Q1, we saw a 10.8% increase in home prices year-over-year. We expect prices to continue to rise since many buyers will continue to meet sellers’ pricing demands.  We are also seeing more affordability issues for others who want to buy in our area. Currently, the average sale price in Kitsap County is $606,000.

Insights from Our Chief Economist

Matthew Gardner, Windermere’s Chief Economist, shared his Top 10 Predictions for 2022 in one of his recent Monday with Matthew videos.  Here’s what Gardner predicts for 2022:

1. Prices will continue to rise, though the pace of appreciation will slow. Gardner thinks it will be about 6% in 2022 versus the massive 16% rise of 2021.
2. Spring will be busier than expected.  This will increase buyer demand, as buyers get more clarity in their new hybrid model combining remote and office work.
3. The rise of the suburbs will also result from this work hybrid model.  Many buyers are moving within the same area they already lived in.
4. New construction jumps since the cost to build has come down.
5. Zoning issues will be addressed.
6. Climate change will impact where buyers live. People will focus more on how safe a location is in relation to natural disasters.
7. Urban markets will bounce back after the demand drop from Covid.
8. A resurgence in foreign investors will return since the travel bans were lifted last November. The demand will rise as long as our borders remain open.
9. First-time buyers will be an even bigger factor in 2022.  This year, 4.8 million millennials will turn 30, the median age of first-time buyers in the U.S.  First-time buyers will be looking for cheaper markets.
10. Forbearance will come to an end and that will be okay. It was well thought out, and as Gardner says, “as of recording this video, there are now fewer than 900,000 owners still in the program.”  Hopefully, this continues to drop.

Additional Information

You can learn more from Matthew Gardner by reading his Market Update by region or watching his Monday with Matthew video series.

If you’re new to our area, check out our free Guide to Kitsap. If you’re interested in buying or selling, our local experts are here to help.