Bremerton Housing Market Year in Review (2024) & Predictions for 2025
Bremerton's housing market in 2024 displayed a dynamic landscape with a mix of encouraging and cautious signals. This report provides a comprehensive analysis of the key trends that defined Bremerton's housing market in 2024, offering valuable insights into what prospective buyers and sellers can anticipate in 2025.
Bremerton Housing Market Performance in 2024
The year 2024 witnessed a fascinating interplay of trends in Bremerton's housing market. While median home prices held relatively steady compared to the previous year, sales volume surged significantly. This suggests a robust demand for housing in Bremerton, even with relatively stable prices 1.
In November 2024, the median home sold price in Bremerton was $465K 2. However, it's important to consider data from various sources to gain a comprehensive understanding of the market. Zillow reported an average home value of $460,304, reflecting a 1.7% increase over the past year 3. On the other hand, Redfin indicated a median sale price of $430K in October 2024, marking a 9% decrease compared to the previous year 1. These variations underscore the dynamic nature of the housing market and the need to consider data from multiple sources. Taking an average of these three values, we can estimate the median home price in Bremerton for 2024 to be approximately $451,768.
Sales volume in Bremerton demonstrated remarkable growth. The number of homes sold in November 2024 was 122.4% higher than in November 2023. Year-to-date, the number of sales increased by 7.8% compared to the same period in 2023 4. This surge in sales activity points to a strong underlying demand for housing in Bremerton.
Despite the increase in sales volume, the average time it took for homes to sell in Bremerton increased slightly. In November 2024, the median days on market was 57 days, compared to 38 days in the previous year 2. This suggests that homes are staying on the market slightly longer, potentially indicating a shift towards a more balanced market.
To further understand the market dynamics, it's essential to examine the months of supply of housing inventory in Kitsap County, where Bremerton is located. The months of supply represent the time it would take to sell all current listings at the current sales pace. In Kitsap County, the months of supply for homes under $400K was 1.5 months in 2024, indicating a hot seller's market with limited inventory and high demand 5.
National and Regional Trends
Zooming out to the national level, the U.S. housing market faced headwinds in 2024, primarily due to high mortgage rates and record-high prices 6. Despite these challenges, the national median existing-home sale price in September 2024 reached $404,500, the highest September median ever recorded by the National Association of Realtors (NAR) 7. This indicates continued strong demand for housing across the country.
The national housing market indicators for November 2024 showed mixed activity. While the pace of new construction fell for both single-family and multifamily housing, purchases of homes increased for new homes but declined for existing homes 8. This suggests a potential shift in buyer preferences towards new construction, possibly influenced by the limited availability of existing homes.
The homeownership rate in Q3 2024 was slightly lower at 65.6% compared to 66% in Q3 2023 9. This slight decline could be attributed to affordability challenges posed by higher mortgage rates and rising home prices.
Foreclosures in 2024 were slightly down, a trend expected to continue in 2025. There were 87,108 foreclosures in the third quarter of 2024, representing a 13% year-over-year decline 10. This suggests that the housing market is not likely to be flooded with foreclosures, providing stability to home values.
Regionally, the Bremerton-Silverdale area demonstrated strong performance in 2024. Kitsap County, where Bremerton is located, saw its median listing home price reach $630K in November 2024, trending up 8.6% year-over-year 11. This indicates that Bremerton's housing market is performing well compared to other regions in the country.
The Northwest Multiple Listing Service (NWMLS) reported a 23.4% increase in the total number of properties listed for sale year-over-year, with 12,558 active listings on the market at the end of November 20241 12. This increase in active listings suggests an improving inventory situation, which could potentially moderate price growth in the future.
The All-Buyer Affordability Index in Q2 2024 was 55.5, while the First-Time Buyer Affordability Index was 39.6 13. These indices measure the ability of a typical family to afford a median-priced home, with a value of 100 representing the point where a median-income family qualifies for a mortgage on a median-priced home. The lower index values indicate that affordability remains a challenge for buyers in the region.
Factors Influencing the Bremerton Housing Market
Several factors contribute to the unique dynamics of the Bremerton housing market. One significant factor is the increasing transparency around agent compensation. Starting in 2024, the Northwest Multiple Listing Service (NWMLS) mandated clear disclosure of agent compensation in all purchase and sale agreements 14. This increased transparency empowers consumers by providing them with more information about the costs involved in a real estate transaction. It also promotes fair practices in the industry by ensuring that buyers and sellers have a clear understanding of how agents are compensated. This increased transparency could lead to greater trust between consumers and real estate professionals, potentially facilitating smoother transactions and a more efficient market.
Another crucial factor is the ongoing housing shortage in Kitsap County. A recent analysis by Zillow revealed a shortage of 4.5 million homes needed for a healthy housing supply in the U.S15.. This shortage has significant implications for the Bremerton market, contributing to rising home prices and increased competition among buyers. The limited availability of homes puts upward pressure on prices, making it more challenging for first-time homebuyers and those with limited budgets to enter the market.
Predictions for the Bremerton Housing Market in 2025
Looking ahead to 2025, the outlook for the Bremerton housing market is a blend of potential growth and some uncertainty. Experts predict a gradual increase in home prices and a potential dip in mortgage rates in the Seattle housing market, which includes Bremerton 16. This could lead to improved affordability and a more balanced market for both buyers and sellers. Lower mortgage rates would reduce the cost of borrowing, making homeownership more accessible to a wider range of buyers.
However, regional forecasts suggest a potential price decrease in the Bremerton area by September 2025 17. This projection highlights the localized nature of real estate markets and the need for buyers and sellers to stay informed about specific trends in their area. The divergence between national and regional forecasts could be attributed to various factors, including local economic conditions, housing supply, and demographic trends.
Adding to the uncertainty is the potential impact of an economic recession. Rising interest rates, inflation, and an economic slowdown could contribute to a market correction, with home values flattening out or even decreasing 18. However, historical data suggests that home values in Kitsap County have appreciated even during previous economic recessions [38].
Major Developments and Policy Changes
Several major developments and policy changes are poised to shape the Bremerton housing market in 2025. One notable development is the increase in new housing units coming on the market in Kitsap County. Port Orchard alone expects to have over 2,100 new housing units occupied by 2025, with another 2,900 units planned2 19. This increase in housing supply could potentially moderate price growth and provide more options for buyers.
Kitsap County's 2024 Comprehensive Plan Update aims to maintain the county's rural character by directing growth toward urban areas and supporting denser housing around transit 5. This plan includes several bold housing reforms being considered in Bremerton, such as eliminating parking mandates, removing height limits in downtown, and expanding neighborhoods where additional density is allowed 20. These reforms could significantly impact the housing market by encouraging the development of more diverse and affordable housing options.
The County is also prioritizing increased housing diversity, including "missing middle" and multi-family housing 21. This focus on different housing types aims to address the needs of a wider range of residents, from young professionals to growing families.
To balance development with environmental concerns, the County is requiring tree canopy in new developments, which could impact developable land 21. All rural reclassification requests have been referred to a 2025+ planning process 21, indicating a cautious approach to expanding development in rural areas.
On the policy front, the City of Bremerton has identified increasing affordable housing stock as a priority for HOME funding in 2025 22. This focus on affordable housing could have a significant impact on the availability and affordability of homes in Bremerton, potentially making homeownership more accessible to lower-income households.
Bremerton Rental Market
In addition to the for-sale market, the rental market in Bremerton plays a crucial role in the overall housing landscape. The median rent in Bremerton is around $1,762 per month 23. The availability of rental properties varies across neighborhoods. For example, Manette offers 10 rental homes, while Sheridan Park has 5 2.
Historical Trends in the Bremerton Housing Market
Examining historical trends provides valuable context for understanding the current state of the Bremerton housing market. In 2021, the home sales market had an estimated vacancy rate of 0.8 percent, down from 2.2 percent in 2010 24. Existing home sales prices increased by 11 percent during 2020, following an increase of 7 percent in 2019 24. This historical data indicates a trend of decreasing vacancy rates and increasing home prices in Bremerton.
Conclusion
Bremerton's housing market in 2024 presented a mixed bag of trends, with relatively stable median home prices, increased sales volume, and slightly slower market times. While national and regional trends suggest potential price increases in 2025, local forecasts indicate a possible decrease. Factors such as increased housing supply, policy changes focused on affordable housing, and the potential for an economic recession will likely play a significant role in shaping the Bremerton housing market in the coming year.
Overall, Bremerton appears to be transitioning from a strong seller's market to a more balanced state. The increase in housing supply and the focus on affordability could create more opportunities for buyers in 2025. However, sellers may need to adjust their expectations and pricing strategies as the market cools down.
Prospective buyers and sellers should carefully consider these factors and consult with local real estate professionals to make informed decisions. Buyers should be prepared for competition, especially in the more affordable price ranges. Sellers should focus on presenting their homes in the best possible light and pricing them competitively to attract buyers in a potentially cooling market.
