Kitsap’s Market: First Quarter, 2022

Kitsap County’s real estate market is picking up and had a solid first quarter. In 2021, we saw high demand and low inventory, and that is still the case. It’s still a seller’s market; homes continue to sell above the asking price. Read on for key highlights and market trends below. And, if you’re looking for the connected life that Kitsap offers, our local experts are here to help.

News on Sold and Pending Homes

2022’s first quarter is rising like the first quarter of 2021. You can see it reflected in the market volume graph outlined above. This follows the usual real estate market trend of a cooler first quarter and then a shift as the market heats up in warmer months. As usual in a seller’s market, sold homes still outpace pending listings and home prices are still increasing due to demand. From January through March, 994 homes were sold. That is a 10.7% increase when compared to 2021’s first quarter, showing more movement as the pandemic wanes.

Kitsap’s Market Still Favors Sellers

As supply remains low in relation to pre-Covid times, sellers can list with confidence. Buyers will need to be prepared for a competitive real estate journey. We expect more homes to come on the market as we hopefully put Covid-19 behind us.

Listing Price vs. Sale Price

Kitsap’s market is still seeing many eager buyers and often competitive, multiple-offer situations. We saw a 10.8% increase in home prices year-over-year. They are expected to continue to rise as Kitsap’s market has many buyers who will continue to meet the pricing demands of sellers. However, we are continuing to see increasing affordability issues for others. The average sale price in Kitsap County is currently $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:

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.
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.
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.
New construction jumps since the cost to build has come down.
Zoning issues will be addressed.
Climate change will impact where buyers live. People will focus more on how safe a location is in relation to natural disasters.
Urban markets will bounce back after the demand drop from Covid.
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.
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.
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.