Kitsap County Trends Report...25


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Single Family Market (cont.)

APPRECIATION RATES LESS IN RECENT YEARS.

Appreciation rates were very high at the beginning of the decade, ranging from 11.8% to 16.0% for its first three years, but the average home price has increased at an annual compound rate of only 6.83% from 1993 through June 1999. The chart below summarizes appreciation rates by area within the county and clearly depicts the softening of the single family residential market within recent years.

MLS Single-Family Appreciation Rates (Average Prices)
CMLS Area19891990199119921993199419951996199719986 mo.
1999
1 South Kitsap14.1%11.8%15.3%16.0%3.3%1.9%2.3%3.3%0.8%12.2%-0.7%
2 Silverdale14.3%21.2%12.9%0.3%1.0%1.9%-6.1%5.3%6.1%2.3%-0.6%
3 W. Bremerton19.5%19.8%11.3%11.1%7.6%3.5%-6.9%7.0%12.9%-3.4%-1.1%
4 E. Bremerton16.4%9.4%13.6%13.2%2.4%2.1%-2.2%5.9%2.8%8.8%-0.8%
5 Central Kitsap1.7%9.6%16.7%7.5%0.5%3.5%-0.7%0.5%6.1%4.6%8.2%
6 North Kitsap21.9%16.9%4.4%8.9%7.9%2.3%-0.2%9.2%3.2%6.4%8.4%
7 Bainbridge Is.24.1%28.4%-2.5%5.0%4.4%8.4%8.5%-1.3%3.0%13.1%7.8%
County Totals18.4%12.2%8.7%8.5%3.8%5.3%-0.3%5.2%7.0%8.6%3.2%
Less Bainbridge15.2%14.6%12.6%9.8%4.1%2.6%-1.4%3.4%5.1%6.2%3.5%

BAINBRIDGE ISLAND/NORTH KITSAP EXPERIENCED HIGHEST APPRECIATION

The data indicates that over the past five years the Silverdale and Central Kitsap market areas have posted the lowest price gains, with the highest appreciation rates were experienced in the Bainbridge Island and North Kitsap areas.

TAKES FEWER DAYS TO SELL A HOME

A positive sign indicated by the data is the recent reduction in the average amount of time that it takes to sell a home, an indication that demand may be on the rise. County-wide, the number of Days On the Market (DOM) had steadily been increasing, and was up from 94 days in 1993 to 139 days for year-end 1997. The 1998 figures were dramatically lower, and for the first six months of 1999, averaged 91 days.

"NEW HOME" PRICES INCREASE

The Digest is a publication that formerly compiled data on "all" property sales that occurred within Kitsap County. Unfortunately, this company terminated their services in Kitsap County in early 1997, so figures are only available through the end of 1996. The Northwest Multiple Listing Service, on the other hand, does track "new home" sales that occur through their member brokers, but their data is available only as of January 1998. Further complicating the matter is the fact that sales areas from each of these data sources are not identical. Despite these limitations, the appraiser has attempted to match sales areas as closely as possible.

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