Kitsap home prices drop, surplus grows

By Brynn Grimley, Kitsap Sun
Sunday, December 9, 2007

Kitsap County had more homes and condos for sale last month than November a year ago and the median sale price dropped $19,000, or 6.69 percent, during the same period, according to Northwest Multiple Listing Service statistics released last week.

But real estate professionals are trying to emphasize that the drop in prices shows that real estate trends, including those in Kitsap County, are starting to return to normal for the time of year rather than signaling a problem.

"As expected, Kitsap's housing market has adjusted to the slow down in job growth, stricter credit requirements, and the traditional slower winter season," said Mike Eliason, executive of the Kitsap Association of Realtors. "In comparison to real estate markets throughout the nation, however, Kitsap is still relatively strong."


Inventory is up 25.33 percent from this time last year and pending sales have declined 27.53 percent during the same time period.

In contrast to the increase of homes for sale from this time last year, the number of condominiums for sale for the month of November was down 7.53 percent. The slight decrease in condominium sales from last year to this year is likely due to higher listing prices and fewer purchasers, Eliason said.

In November 2006, the median sale price of a home was $285,000. That median dropped significantly last month to $265,000. This could be reflective of the market's entrance into the "winter cycle" where real estate activity is less.

The decline is a positive for those wanting to own homes, because the new median home price is beginning to align with income levels of Kitsap residents.

In an effort to help people with subprime loans, the Bush administration is trying to do its part to reduce the number of people forced out of their homes due to foreclosure. Earlier this week President George W. Bush negotiated a deal with the mortgage industry to freeze the interest rates of roughly 2 million homeowners with subprime mortgages.

Some subprime mortgages are scheduled to rise in the next couple of months to interest rates as high as 11 percent. That increase would add hundreds of dollars to typical monthly mortgage payments for many homeowners.

While the negotiation will help homeowners currently living in homes with subprime mortgages or loans provided to borrowers with spotty credit histories the impact on those trying to buy homes will likely be minimal.

"Since Washington state ranked 49th in the nation in foreclosures and subprime loans accounted for fewer than 10 percent of mortgages during the reporting period, the impact will be minimal in general," Eliason said.