Kitsap County Trends Report...31


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Housing Affordability (cont.)

One additional note about median prices is needed. Half the homes sell for prices above the median, half below. Both buyers and sellers are sometimes confused by these prices. Suburban sellers often forget that there are many less expensive homes in less desirable (by their standards) neighborhoods which help keep the medians down. Meanwhile, prospective buyers may be frightened out of the market by the unfounded belief they can't buy a home for less than the median.

MEDIAN HOME PRICES - 1995-1999
SECOND QUARTERS
County2nd Qtr
1995
2nd Qtr
1996
2nd Qtr
1997
2nd Qtr
1998
2nd Qtr
1999
Percent
Change
97-98
Percent
Change
98-99
Benton/
Franklin
$95,400$99,300$101,300$105,500$108,3004.12.7
Clark$116,600$122,900$130,000$138,500$140,0006.51.1
King$166,300$173,000$186,100$192,000$229,5003.219.5
Kitsap$124,200$123,500$133,500$137,500$142,0003.03.3
Pierce$121,100$126,400$127,800$137,000$143,0007.24.4
Snohomish$149,600$152,800$163,600$170,000$184,6003.98.6
Spokane$98,100$101,000$103,300$103,600$103,8000.30.2
Thurson$116,500$120,900$125,000$129,000$130,0003.20.8
Whatcom$121,200$130,800$133,400$137,200$144,6002.85.4
Statewide$132,600$143,900$149,800$158,900$168,8006.16.2

AFFORDABILITY IN KITSAP BETTER THAN MOST OF STATE

Affordability is calculated two ways. The "all-buyer" index assumes a purchaser selects the area's median price home, makes a 20% down payment, and takes out a 30-year mortgage at prevailing interest rates. This buyer is assumed to earn a typical or median income for a family (no one-person house-holds) in the area. The question then arises, could this typical family afford the monthly payments on a typical home? During the third quarter of 1999, the answer was "yes".

The statewide All-Buyer Affordability index was 116.7, meaning the typical family had 16.7 percent more income than the bare minimum required to qualify for the home. Housing affordability in Kitsap county remained better than in most areas of the state, recording an index of 124.0. Urban areas ranged from a low of 108.5 in King county to a high of 173.6 in Benton county (Tri-Cities area). Housing was modestly less affordable at mid-year 1999 than it had been a year earlier in all urban areas of the state. Higher mortgage interest rates and increasing prices served to overcome income gains in most communities.

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