You’re a smart consumer. You’ve been cautious and diligent with your money, and the thought of buying a home at the height of the market makes you feel sick. Overpaying for anything goes against everything you know about finances.

But buying a home in Kitsap County in this seller’s market is the best financial decision you can make today for your future. It seems insane to buy a home in a hot market, especially when you’re paying well over the listing price.

But it’s not insane. It’s the most logical thing you can do.

What if I told you overpaying for a house in this market’s the smartest thing you can do. In fact, if you’re able to buy a home and aren’t doing it, you’re going to have the biggest case of FOMO.

How can it be a wise decision to buy a home when we’re in a hot market and sellers have all the control? Especially when it comes to price. Let’s chat about that for a minute.

First, it’s important to understand the current housing market in Kitsap County.

Kitsap County Real Estate Market Statistics

April 2022 Kitsap County Housing Market (Rocket Homes, 2022)

Median Listing Home Price: $560k
Median Sold Price: $514,966
Median Listing Home Price per Square Foot: $295
Median Sold Home Price: $568.9k
Number of Homes Sold: 1,020
Average Days on Market: 11 Days

These numbers alone mean very little until you compare them to last year. Or even last month.

	April 2021	April 2022	Difference
Median Sold Price	$438,392 April 2021	$514,966 April 2022	+17.5% ($76,574)
# of Homes Available	914 March 2022	1,020 April 2022	+11.6%
# of Homes Sold	348 March 2022	394 April 2022	+13.2%
Interest Rate 30 yr. Fixed	3.27% April 2021	5.46% May 2022	+2.19%

What does this mean for you as a potential buyer?

Let’s say you bought a home in Bremerton last year. Interest rates would have been 2.19% lower than they currently are. The lower the interest rate the cheaper it is to borrow money. Higher interest rates mean it’s more expensive to borrow the money. So a loan from April 2021 would be cheaper than the same loan issued in April 2022.

You bought your home with an amazing interest rate. That home would have already appreciated in value by roughly 14%. Not only did you buy the home with cheaper borrowed money, but the home’s value has already increased.

Are you feeling a little bummed that you didn’t buy last year?

You can’t change the past, but you can decide what happens in the future. Don’t let the fear of missing out on an incredible opportunity in the Kitsap County real estate market pass you by a second time. It’s still a great time to buy in Kitsap County.

Perhaps there are bigger concerns worrying you about the market and its future. It’s true the real estate market can be unpredictable at times, and the last thing you want is a repeat market collapse.

Will the real estate market crash?

We all remember the last time the real estate market crashed in 2007-2008. Let’s dive deeper so you can feel confident in your decision to invest in the real estate market today.

Back in 2005-2006, housing prices increased dramatically. Much like they’re doing today. That led to the housing market crash in 2007 and 2008.

But the market is different today than it was back in 2007. For starters, the inventory was low and demand was high back then. Today we have lots of demand, but no inventory to support it. In 2007 borrowing money was cheaper, and people were getting into mortgages they couldn’t afford. That’s what led to all those massive foreclosures with homeowners and a huge credit crisis with investors. And that’s when the market crashed.

So will the housing market crash? Experts (Lloyd, 2022) believe as homebuyer demand slows down two things can happen:

The market will correct itself.
The market will crash.

It’s their belief we aren’t heading into another crash, but a correction.

Most likely the market will correct itself. Here’s why.

According to a report done by The Federal Reserve Bank of Dallas,

“Household balance sheets appear in better shape, and excessive borrowing doesn’t appear to be fueling the housing market boom. Market participants and regulators are better equipped with tools and early warning detectors to thwart such a crisis.”

When mortgage rates increase, the market slows down.
As the market starts to slow, home sales and the appreciation rate decrease.
Rising prices slow down demand, pricing out some buyers in the market.
When there are fewer buyers, supply increases.
Increased interest rates decrease buyers’ purchasing power.
As mortgage and refinance rates increase the market cools and corrects itself.

A market correction isn’t the same as a market crash. When the market corrects itself you don’t get the bubble crashing. The bubble crashed during the Great Recession in 2007 and 2008. All signs are pointing to a correction, not a crash and that’s very good news.

Understanding the market and where it’s headed makes it obvious – if you’re able to buy today, do it. It’s clear the market isn’t slowing down anytime soon. And experts agree we aren’t headed into The Great Recession 2.0. So if you’re in a position to buy, it’s time my friend.

5 Reasons Why It’s Still a Good Time To Buy a House in Kitsap County

#1. When home prices increase so does your equity

Homeownership is the starting point to create wealth for you, your family, and generations to come. You build wealth in real estate as your equity increases. Equity is the difference between what you owe on your home, and what it’s actually worth. Investing in real estate is investing in your future and giving yourself options.

You want to be the person that buys when the market is strong, holds onto the home so your equity grows. So in 10 or 20 years when it comes time to sell the home, you’ve got enough equity in your home to retire and retire well. That sounds like a pretty good plan to me.

#2. Owning a home means no rent increase

If you’ve rented for any period of time, you know that rent increases are inevitable. Every time you sign a lease, get ready for your rent to go up. It’s incredibly stressful and unstable. Owning a home takes away anyone’s ability to increase your monthly payments. Talk about financial freedom.

When you buy a home, you have fixed costs. Even if the market changes, your monthly mortgage payments stay the same. Not to mention, you’ll never have to worry about your landlord deciding to sell. It’s your home and you’re in control and that’s a powerful thing.

#3. When you own your home you have more opportunities

Owning a home provides lots of options. You could rent out the entire home. It’s your turn to be the landlord and increase rent as the market changes. Tired of renting office space? Build an office or studio in your home and save money on rent. Or purposefully buy a home with income potential. You can rent out the bottom floor while you live on the top floor and pay off your debt faster while still living in the home. And I don’t need to remind you that any home can easily be turned into an income producing VRBO.

When it’s your home, you can do what you want with it and create ways to earn passive income. Here’s some more good news. Any updates and upgrades you do on the home increase its value, and that money goes right into your pocket and not your landlords.

#4. Interest rates will start to increase

If there’s one thing you don’t have any control over it’s the interest rates. Only the Federal Reserve does. So when the Fed says “interest rates are the lowest they’ve ever been” they mean it. Rising interest rates make homes more expensive to buy. Buying a home is already a pretty big purchase, so you don’t want to pay anymore than necessary.

Don’t let your dream home slip from your fingers because you didn’t take the Feds seriously when they told us interest rates are going to rise. You might be surprised that a lower interest rate monthly mortgage could be cheaper than the rent you’re currently paying your landlord so his equity grows.

#5. Homeownership means investing in your future

You want a future with possibilities. And you want those possibilities to be endless. Home ownership gets you there. Buy today and build wealth over time.

Every month you pay your mortgage, your equity grows. You can borrow against your equity and use that money for so many other things. This means you can finally pay off your student loans, invest in that small business you’ve been dreaming about. Or how about paying for your kid’s college tuition or taking your spouse on that European trip they’ve been hinting at for years. Home ownership is taking your future into your own hands.

Ready to buy a home in Kitsap? I’m here to help.

Buying a home is a huge investment and milestone in your life. If you’re able to enter the market and buy a home today, don’t wait. It’s a great time to buy.

If you aren’t sure you’re able to move from renting to homeownership, contact me today.

My name is Wendy Bathgate. I’m a local real estate agent in Kitsap County. I would love to meet with you and discuss your options when it comes to buying a home.

Together, let’s find you the home of your dreams. Send me an email at hello@livingthekitsaplife.com and let’s see where you stand when it comes to buying a home.