Kitsap County Housing Market Stats February 2023
As we head into the spring of 2023, the Kitsap County real estate market continues to remain strong. According to the latest statistics from the NWMLS, February 2023 was a seller's market with a decrease in available homes for sale, but an increase in closed and under contract units compared to the previous month. Let's take a closer look at the numbers.
Firstly, the number of homes for sale in February 2023 was 336 units, down by 18.8% compared to January 2023. This decline in available inventory is indicative of a seller's market. A seller's market occurs when the demand for homes exceeds the available supply. With fewer homes available, sellers may have more leverage during negotiations, and homes may sell more quickly and at higher prices.
Secondly, the number of closed homes in February 2023 was 235 units, up by 20.5% compared to the previous month. This increase in closed units indicates that buyers are continuing to actively purchase homes in the current market conditions. In a seller's market, it's not uncommon for homes to receive multiple offers, resulting in bidding wars and ultimately driving up the sale price.
Lastly, the number of homes placed under contract in February 2023 was 275 units, up by 3% compared to the previous month. This increase in the number of homes under contract suggests that the demand for homes is still strong, even with the decrease in available inventory.
These statistics indicate that it's a great time for sellers to list their homes on the market. Unfortunatley, that has quickly shifted in March 2023. We have seen more inventory hitting in the last couple of weeks, but inventory is still well below normal for our area. With fewer homes available, sellers may be able to receive multiple offers and sell their homes quickly and at higher prices. Homes getting multiple offers are the “Best of the Best” meaning great home, great location, and great price to start with. Now is still a great time to buy a home. Home prices are still stabilizing and with less competition from last year, your sure to find the home that fits your specific needs.
In addition to the statistics mentioned earlier, the average sold price per square footage in February 2023 was $274, indicating a neutral market. This means that the market is neither in favor of buyers nor sellers and is considered to be balanced.
The average sold price per square footage is an essential metric for both buyers and sellers, as it indicates the value of a home relative to its size. A decrease of 6.8% compared to the previous month suggests that home prices have gone down slightly, which can be attributed to the decrease in available inventory. However, it's important to note that this decrease is relatively small and may not have a significant impact on the overall market conditions.
A neutral market can be a good thing for both buyers and sellers. Buyers may have more negotiating power as they can expect fair prices for homes, while sellers can still expect to receive a good price for their homes without it being too high or too low. It's important to note that even though the market is considered neutral, home prices can still vary depending on location, condition, and other factors.
As we head into the spring and summer months, we may see a shift in the market conditions. With the warmer weather and more homes expected to be listed for sale, we may see an increase in available inventory, which can result in a shift towards a buyer's market. However, it's important to keep in mind that the real estate market is unpredictable, and it's best to consult with StaciaSellsHomes + Associates to determine the best course of action for your specific situation.
One important indicator of a seller's market is the months of inventory based on closed sales, which is calculated by dividing the number of active listings by the number of closed sales in a given month. In February 2023, the months of inventory based on closed sales was 1.4, down by 33% compared to the previous month.
A low months of inventory figure suggests that the demand for homes is greater than the supply, which is indicative of a seller's market. With such a low inventory, homes are selling quickly, often resulting in bidding wars among buyers, and sellers have the upper hand in negotiations. We stopped seeing this as much from September 2022 - until February 2023. We have seen more homes come on the market in March 2023, but we’ve also had more home buyers resurface due to interest rates being slightly lower… For now.
In our neutral market, Sellers are still able to sell their home quickly, for a great return. Home Buyers will be able breathe easier because they won’t have as much competition and will have more favorable negotiation tools.
For sellers, a low months of inventory figure means that their homes are in high demand and they may be able to sell quickly and at a premium price. However, it's important to note that even in a seller's market, the condition and location of a home can still impact its sale price and how quickly it sells.
Looking forward, we are already seeing more homes hit the market, which is normal in Spring and Summer. Only time will tell if the amount of homes that hit the market will make up for the demand. It’s going to depend on several factors and Interest Rates will be a big one. Currently, interest rates have come down and it’s sparked a small frenzy in Kitsap County.
February 2023 was a seller's market to neutral market, with a low months of inventory based on closed sales and a high demand for homes. Home prices have stabilized, but have come down a bit. Buyers still need to act quickly and make competitive offers, while sellers may be able to sell quickly and at a premium price. As always, it's important to consult with StaciaSellsHomes + Associates/John L. Scott Silverdale to navigate the market conditions and make informed decisions.
