The last 18 months have been quite a ride, especially when it comes to the real estate market in Kitsap, King, and Pierce counties. Turns out we haven’t seen a mass exodus from Seattle, but more and more buyers have been exploring areas outside the cities. Remote work doesn’t seem to be going away, and many Seattle and Eastside tech workers have been looking West to Kitsap County for a more chill quality of life.
Spring Fever
Maybe you remember Spring 2021? You know, the time when the market reached a fever pitch and it was utter chaos? May and June were the peak of the over-heated market. We all knew it had to peak somewhere, and that was in May and June for the bidding wars which was reflected in the median sales prices in June and July.
Summer Heat
When all those properties that went under contract (pending) in May and June closed in July and August, we started to see the median sale price turn the corner.
Cooling Off for Fall
Although August and September were still busier than a “normal” summer, the 2021 market was still was hotter than 2020 because there were fewer homes on the market.
But this summer, we also saw the return of people traveling and enjoying all those summer activities that the PNW is known for. Buyers, sick of the bidding wars and sky-high prices took off. Instead of house hunting, they were camping, hiking, taking long walks on Kitsap beaches, summer vacations…and generally not doing much house-hunting.
The market began to slow in early August. Prices began coming back to Earth as buyers gave up and left the market (or went on vacation) and interest rates have been rising, too. Price per square foot has leveled off for now.
The number of homes for sale has leveled, too. Although inventory is still extremely low (< 1 month to 1.3 months’ supply), at least it’s up from the < 1 month numbers we were seeing in January and February of this year.
What’s Next?
As interest rates continue to rise, buyers come back to the market, and more sellers put homes on the market, we should continue to see the market stabilize. Things will become a bit more predictable and seasonal, and maybe we can all relax a little bit.