Kitsap County and the Olympic Peninsula are experiencing vigorous activity from would-be buyers from the Seattle/King County area who are looking for “safety, community, affordability, and choices.” Also, it has been cited the area’s low unemployment rate and robust economy as market drivers. Inventory in Kitsap County has not expanded at anticipated rates. Builders are perplexed with new regulations, increasing costs of construction materials, and increased bureaucratic overlays. The volume of new listings (including single family homes and condos) in Kitsap County increased 47.4% from a year ago and nearly 17% from March, but total active inventory was down 47% from a year ago, resulting in about two weeks of supply (0.57 months). There has been an estimated 80% of sales in Kitsap County exceeded listed values, with “many buyers making the buying decision from a virtual tour.” Year over-year prices rose 22.7%, with the median price on last month’s sales, at $485,000, significantly lower than King County where it was $750,000.

Intense competition is causing buyers and sellers to consider shortening offer review dates. Sellers with offer review dates within five to seven days of the listing date are receiving strong offers on day one or day two of listing. Some sellers are considering offers with no contingencies and aggressive prices. Although bidding wars are common, some brokers are reporting things may be starting to moderate related to pricing. Some sellers who have been pushing the envelope on their home price are now experiencing longer list times and, in some cases, have had to drop their prices. It’s emphasized that sellers need to price appropriately. With things starting to return to normal, the off-the-chart activity placing sellers in the driver’s seat may be moderating. The real estate market was the cornerstone of the US economy during the darkest days of the pandemic, and things are not changing as we return to normalcy. It’s still very tough for buyers. The value used to be what the comparable properties sold for. Now it’s whatever the buyer is willing to pay, which is almost always more than the list price. Although inventory remains a challenge, there may be hope on the horizon as we head into the prime-time months for sellers.

Condominiums may be an option for some house-hunters. Database shows 1,127 current condo listings with prices on these offerings ranging from $75,000 for a listing on a golf course in Adams County to $13.5 million for a penthouse on First Hill in Seattle. Condo supply remains tight at 0.88 months (down 27% from a year ago), with prices up 12% area wide. In King County, where nearly three-fourths of current inventory is situated, year-over-year prices increased about 7%. It is interesting to note a continued decline in King County’s condominium inventory – down from nearly 1.6 months of supply in January -- perhaps marking a return to the urban markets with increased vaccinations. The MLS report for April shows pending sales of condos for the map areas encompassing Seattle spiked nearly 184% from a year ago, from 135 units to 383. Condo’s are increasingly popular with millennials with 47% of all condo mortgage applications submitted by millennials in 2019. Research by the National Association of Home Builders (NAHB) indicates improving perceptions about the availability of homes among some buyers, and especially among millennials, the largest share of home buyers. In its latest Housing Trends Report, NAHB reported the share of millennial buyers who expect housing availability to ease up in the months ahead rose decisively between the first quarters of 2020 and 2021, from 26% to 42%.