Kitsap County Trends Report...29

Housing Affordability

HOUSING MARKET AND HOUSING AFFORDABILITY DATA SOURCES

This analysis of housing markets and housing affordability in Washington was prepared for the Kitsap County Real Estate TRENDS by the Washington Center for Real Estate Research at Washington State University. It is based on a quarterly report published by the Center which examines county-by-county housing markets across the state. Data estimates are based on data from the U.S. Department of Commerce, multiple listing services, local REALTOR associations and private data vendors.

KITSAP COUNTY OUTPERFORMS MOST IN HOUSING RESALE ACTIVITY

Housing markets in Washington State during the first half of 1999 responded to strong underlying economics in most parts of the state, combined with in-migration, especially to urban areas in Western Washington. By the third quarter, Kitsap County was outperforming most of the state in terms of housing resale activity. The Greater Seattle area continued to exhibit the strongest housing markets in the state, despite initial evidence that the housing boom is beginning to slow.

SLIGHT INCREASE IN MORTGAGE INTEREST RATES SLOWING MARKET

Mortgage interest rates remain very affordable, but reflecting pressure by the federal Reserve Board to fight potential inflation by slowing the economy through higher interest rates, the last several months have seen slow but steady increases in mortgage rates. Since consumers have become accustomed to lower rates, these increases are beginning to cause modest slowing in real estate markets, and less affordable housing as continued price increases are reinforced by higher financing costs.

WASHINGTON CENTER FOR REAL ESTATE RESEARCH

The Washington Center for Real Estate Research uses data from multiple listing systems and other groups that monitor housing market activity throughout the state to compute measures of existing home sales (housing resales, excluding new homes sold). Since many sales take place outside of multiple listing systems, the data is linked to sales reported in the most recent Census (1990).

BY
GLENN E. CRELLIN
DIRECTOR, WASHINGTON
CENTER FOR REAL ESTATE RESEARCH
WASHINGTON STATE UNIVERSITY
P.O. Box 644861
PULLMAN, WA 99164-4861
800.835.9683
Direct: 509.335.1671
Fax: 509.335.7863