Kitsap County continues to have restricted inventory and a multitude of buyers outstripping supply. Noting that county’s supply is slightly higher than most surrounding counties, an anomaly is taking place. Many resale homes have adjusted asking prices downward while new construction prices continue to rise. We are seeing a tremendous influx of builder interest. Some homes being added to inventory have not been in the marketplace for 10 to 40+ years as post-Vietnam War-era workers retire and look to resize their housing. Investors are also active. They are contacting everyone who owns a home or land in Kitsap and Mason counties offering cash and a quick close (and intending to convert some properties into rentals) because they know the value of this market. Consequently, buyers entering the market must be prepared with all their finances, pre-approvals and supporting documents available in order to compete.

Would-be buyers will find prices for single family homes and condos are 15% higher than a year ago, with most counties reporting double-digit gains. Area-wide, the price for last month’s closed sales was $575,000, which was $75,000 higher than twelve months ago. For single family homes (excluding condos), prices rose 16.3% YOY, rising from $515,000 to $599,000. Condo prices were up about 11.3%, increasing from $395,000 to $439,475. King County was the exception among the metro areas with double-digit price gains. Prices were up about 9.5% from twelve months ago, increasing from $685,000 to $750,000. Within the county, prices in Seattle registered the smallest gain at 5.3% while Vashon prices jumped more than 33% compared to a year ago. Homes that sold in the Southeast part of the county surged 19.7%, followed by the Southwest segment at 17.7%. On the Eastside, where the median price was more than $1.1 million, year-over-year prices were up 17.3%.

The trends provide a mixed message as to whether demand will return to the cities as quickly as anticipated. With millennials looking for value and increased opportunities to purchase a home in the suburbs, it could be an interesting few months as to whether the lifestyle of the city and employers can change the balance of demand back to the city. Buyers may find some relief with condominiums, although the selection is limited. From an affordability standpoint, many buyers have been forced into the condo market, but the inventory is severely depleted. Active listings of condos are down about 55% from a year ago, shrinking from 2,079 properties to 941. About seven of every 10 condos are located in King County. The median price on condos that sold last month system-wide was $439,475. That’s up 11.3% from the year-ago figure of $395,000. In King County, prices rose modestly, from $459,970 to $475,000 (up about 3.3%). Condo inventory was comparable to both a year ago and a month ago in Kitsap County, while prices spiked 22% from a year ago.