A recent article in our local newspaper, the Kitsap Sun, written by Josh Farley, highlighted the apparent surge of growth in the condo market here in Kitsap County, WA. In the article, Mr. Farley reports that median condo prices in Kitsap County have soared dramatically from $186,450 a year ago up to $320,075, a 72% increase (according to numbers from the Northwest Multiple Listing Service).
Let’s not forget that these numbers are heavily scewed by several upper scale projects on Bainbridge Island (over $1M on units near the marina) and some waterfront developments in Bremerton (upper $800K+).
There’s no doubt that condo sales, in general, have been on the increase, both here and in the greater Seattle area. And, as a result, the number of apartment complexes which have been converted to condos has increased as well.
I myself, have been recently representing a Seller who purchased an 8-unit apartment complex in Bremerton a few years ago and converted them to condos. She did an excellent job coordinating the remodel, electing to offer numerous upgrades and quality finishes, rather than the typical ‘band-aid’ fix one sees so often. The units were priced very aggressively, and all but one unit has sold to date.
However, one of the primary reasons for increased condo sales that was missing from the article was the fact that buying and owning a home these days has become extremely difficult, especially for first time Buyers. The current average sales price for Single-Residence homes here in Kitsap County (excluding Bainbridge Island) is nearly $340K. With the harsh reality of payscales not keeping in pace with increased valuations, condo purchases are one of the few viable alternatives for home ownership.
Just a few years ago, there was a plethora (thank you, Three Amigos!) of inexpensive, lower-end homes in Kitsap County, especially in West Bremerton. You could easily find something in ‘Move-in’ condition under $100K. Nowadays, the only thing under $100K is a pre-1978 single-wide out in Tahuya without utilities! (if you live out in Tahuya, I mean you no disrespect).
For the longest time, I’ve been somewhat mystified with the sales of the new waterfront condos in downtown Bremerton. Now, don’t get me wrong. I have the greatest respect and admiration for Bremerton Mayor, Gary Bozeman. Mayor Bozeman has almost singlehandedly lead the charge for a major rennovation and resurgence of downtown Bremerton. And, for all intents, his vision has been slowly coming to fruition.
But for someone to pay over $800K for a condo in West Bremerton? Now there is some really amazing salesmanship! That, or some really gutsy Buyer/Investors!
Look for more condo conversions here in Kitsap County in the near future. People want to have their own piece of the rock, but they don’t necessarily want to pay for ‘diamonds!’
For additional information about condos, especially in the greater Seattle area, go to The Seattle Condo Blog by Ben Kakimoto. Ben is one of the premier resources for condo real estate in the Seattle market.
P.S. This article is dedicated to Mike Mueller of Patagonia Finance in Walnut Creek CA. Had enough Teriyaki yet?
