As Kitsap’s housing crunch continues, home prices soar

If you’re looking to buy a home in Kitsap’s tight market, the search for a new place hasn’t gotten any easier or, for that matter, cheaper heading into the new year.

With dropping inventory over the past year, homes prices in Kitsap County have only continued to soar — reflecting rising housing costs seen around the Puget Sound.

In Kitsap, median home prices hit $380,000 this January, marking a 12% jump from the same time last year, according to the latest data from the Northwest Multiple Listing Service.

Condominium prices have risen even more quickly. The median price of Kitsap condos increased 84% from a year prior, from $198,000 to $365,000. Condo prices, however, can widely fluctuate month-to-month; January prices are still lower than the start of 2018.

In the past five years, median home prices in Kitsap have risen by an average of 9.4% each year. In 2019, median home prices were about $381,000 throughout the year.

Even so, Kitsap’s home prices are still below Washington state as a whole. In King County, by comparison, median home prices were about $615,000 over the course of last year.

Median prices in Kitsap were the sixth highest out of Washington counties last year. King, San Juan, Snohomish, Jefferson and Whatcom counties all had higher prices than Kitsap.

The surge of buyers at the start of the year is “more intense than usual,” said J. Lennox Scott, CEO of John L. Scott Real Estate, in a press release Thursday. That, paired with low-interest rates and extremely positive job growth, translates to rising prices and “a piping-hot market," he said.

In Kitsap, there has been increasing housing scarcity in recent months, with fewer homes available to meet demand.

In January, Kitsap had just 1.18 months of home inventory, the time it would take to sell all homes on the market if no new listings were added. A housing market is generally considered balanced when it has a four- to six-month supply. In 2019, Kitsap's inventory never broke 2 months.

It’s even more difficult for those looking to buy their place: Homes below $750,000 are “virtually sold out” in Kitsap County, according the press release. In that price range, inventory is less than a month.

Kitsap real estate broker Frank Leach — who owns the Silverdale RE/MAX Platinum Services — said he’s noticed house hunters moving to the West Sound for more affordable communities and easier commutes.

That appears to be having an effect on the market.

“Kitsap buyers continue to be frustrated by the lack of inventory and the bidding process of trying to secure a home,” Leach said in the press release. “While inventory is expected to increase in the spring, the demand is here now.”

Austen Macalus is the Kitsap Sun's social services reporter — covering health care, homelessness and how programs are serving those in need. He can be reached at austen.macalus@kitsapsun.com or 360-536-6423.

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