Kitsap Peninsula Business Journal
6-10-2005
SPECIAL REPORT - REAL ESTATE ON THE PENINSULA
Home sales, prices on the rise again

Homes in Kitsap County continue to get more expensive — at least according to the Northwest Multiple Listing Service (NWMLS), which tracks land, home and condo sales in 15 Western Washington counties.

After a slight leveling-off period early this year, both the number of homes sold — and prices they’re selling for — are once again are on the rise .

According to the NWMLS, the median price of Kitsap County homes that sold in April increased nearly 23.5 percent from the same period a year ago, to $252,000. That is significantly higher than neighboring Pierce County which had a median price of $223,475, up from $193,000 in 2004.

The Kitsap number is somewhat skewed by the significantly higher prices on Bainbridge Island, where the median price of homes has skyrocketed to its highest ever — $600,000 — a whopping 31 percent increase over the median price just a year ago. Previously, the month with the highest median price, was January, at $507,500.

Bremerton and South Kitsap, which have traditionally been the most affordable areas, continue to be. The median prices there have not increased as dramatically in the past year as thay have on Bainbridge Island, or in Kingston, and Indianola.

Real estate professionals offer a variety of explanations, but most agree it is a combination of inflated demand fueled by low interest rates, as well as a dwindling supply. The inventory of building lots for new construction is facing a critical shortage due to restrictions mandated by the state’s Growth Management Act (GMA), which continues to drive the price of existing homes ever higher.