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Our Community Involvement in 2021
We love Bainbridge Island and our community involvement is an important part of how we operate. So, we thought we would take a moment to share how our Windermere Bainbridge Island office has been involved this year. By doing so, we hope to spread awareness about some of the great events and non-profits that you can connect to and support as well.
Annual Support
We’ve proudly supported Bainbridge Youth Services (BYS) for years. Since 1962, they’ve worked hard to “promote the social and emotional well-being of adolescents and young adults” through a variety of services including free, confidential counseling, and peer tutoring.
Another youth-centered organization that we support on an annual basis is the Boys & Girls Club of Bainbridge Island. They offer a program for K – 4th grade and a separate middle school program for 5th – 8th grade. When the pandemic began, our local Boys & Girls Club chapter began offering discounted rates and extended out-of-school programming.
PAWS of Bainbridge Island and North Kitsap has been helping pets and their people for 45 years, and we love supporting their efforts. PAWS is a volunteer-based nonprofit animal welfare organization. Their services include pet adoption, spay/neuter assistance, pet retention counseling, humane care for elderly cats, and veterinary financial assistance. They have been helping cats and dogs find loving homes since 1975.
Community Events
Bainbridge Island’s Art Walk is a vibrant event, and we love participating in it. It happens the first Friday of every month and it’s a fun way to enjoy local artists’ creations and live music while having a bite to eat and chatting with neighbors and friends. This tradition is brought to you by the Bainbridge Island Downtown Association. This year, we moved our office to downtown Winslow Way, and we’ve loved highlighting local artists and musicians during the Art Walk. We will continue to do so in the new year.
Another fun event we look forward to each year is Shred Fest. It’s a free event where you can safely and securely shred old documents and recycle old electronics. We love to host this event because it helps people get organized and recycle. And, it’s always fun when friends and clients stop by.
Every year, all Windermere offices close for Community Service Day so that we can give back to the communities we serve. This year, some of us helped with the Bainbridge Island Land Trust, which works to “conserve and steward the diverse natural environments of Bainbridge Island for the benefit of all”. They’ve protected 1, 471 acres to date and provided 1,102 public acres. Additionally, we hosted an online fundraiser in an effort to further support Bainbridge Youth Services.
Every year, we participate in Pacific Northwest Title’s annual food drive. This year marked their 17th year. There are many in need in our community, and a food drive is an easy way to give back. In fact, in Kitsap County, approximately one-third of adults are food insecure and over a third of local children are in need of free and reduced lunch. Our local food banks serve about 48,000 residents per year.
This year we also supported Kitsap Humane Society‘s drive sponsored by Pacific Northwest Title, and we promoted Kitsap Humane Society for Kitsap Great Give. Dedicated to rescuing, rehabilitating, and rehoming pets, Kitsap Humane Society has been serving our community since 1908. It’s one of the leading animal welfare organizations in the Pacific Northwest. Last year alone, KHS rehomed 3,676 animals. Check out our video promoting Kitsap Humane Society, which features some of our agents and their pets.
Other fun events that we were happy to support this year include Hometown Halloween and the senior class graduation parade.
Additionally, a couple of our agents sponsored some of the studios for the Bainbridge Island Studio Art Tour. This free, self-guided tour celebrates locally made art. It’s a chance to appreciate local artisans, see works in progress, and purchase beautiful art. The Winter Studio Tour 2021 was December 3rd – 5th. If you weren’t able to attend, you can explore the featured artists’ work online.
Windermere Foundation, Bainbridge Island
A portion of every agent’s commission is donated to the Windermere Foundation of Bainbridge Island. All of our agents participate, and we’re also proud to be part of the broader Windermere Foundation. It impacts communities across 10 states and we’ve collectively raised over $41 million for programs that provide shelter, food, children’s programs, and more.
Every year, our Foundation awards two or three Bainbridge High School graduates a total of $6,000 in scholarships based on their community service, academic achievement, and financial need. We have also supported a variety of local nonprofits. This year we awarded grants to Peacock Family Services, Helpline House, Arms Around Bainbridge, Housing Resources Bainbridge, and Bainbridge Youth Services. All of these organizations strengthen our community, providing vital resources and support to those in need.
While we recognize that there are many different ways to give back, we’re proud of what we’ve done so far. If you’re looking to get more involved in our community, we hope this has sparked some ideas. We should note that our agents also support a variety of charities on their own. So this only reflects our office-wide community involvement.
Third Quarter Market Review for Bainbridge Island
Bainbridge Island’s real estate market remains a strong seller’s market. In our third quarter, we continued to see homes sell above the asking price. We also saw a similar increase in average sale price when compared to this time last year. We’ve compiled key highlights to keep you in the know about our local market.
Bainbridge’s Competitive Market
Bainbridge Island continues to get more competitive for buyers in this third quarter. Many home buyers want to live near Seattle while enjoying beautiful Bainbridge, and remote work trends have increased demand. However, the volume of homes on the market decreased year-over-year, making our seller’s market that much stronger. If you’re looking to buy, our Brokers can help guide you through this competitive market. They know this market extremely well, they know the nuances of Bainbridge’s neighborhoods, and they have excellent track records.
Market Data
In the last five quarters outlined in the graph below, the long-standing growth trend in sales volume is finally slowing. Yet home prices are still growing and sold homes still outpace pending listings as a result of the increased economic demand. As the season slows and inventory wanes, prices may level – effectively balancing out the market between buyers and sellers. Or, at least they will start to shift toward a more balanced market.
With our lower supply, we continue to see even higher prices. While many buyers are willing to meet the demands of Bainbridge Island’s pricing, there just aren’t enough homes on the market right now. As you can see below, the averages of listing and sale prices are starting to converge as demand stretches the costs of housing even further in favor of sellers.
Home Purchase Sentiment Index: Insights from Matthew Gardner
In his most recent Monday with Matthew video, our Chief Economist delivered a comprehensive analysis of the most recent Home Purchase Sentiment Index figures put out by Fannie Mae. The data comes from a survey containing approximately 100 questions on housing-related topics. Fannie Mae collected 1,000 consumer responses from across the country. As Matthew Gardner says, “It’s the only national, monthly survey that’s focused primarily on housing.”
The survey shows that many Americans continue to think it is not a good time to buy because of the low supply and rapidly rising prices. However, many feel it is a good time to sell as consumers predict home prices and mortgage rates will go down. As Gardner explains, “most consumers continue to report that it’s a good time to sell a home, but a bad time to buy. They most frequently cite high home prices and a lack of supply as their primary rationale…However, the good time to buy component did tick up for the first time since March.” While this is a recipe to shift towards a buyer’s market, we’ll see how things unfold in the coming months.
Gardner sums it up nicely: “The takeaways for me so far are that consumers tempered both their recent pessimism about home buying conditions and their upward expectations of home price growth.” So again, we are seeing the potential for a shift toward a more balanced market.
New Agent Spotlight: Chris Miller
Although Managing Broker Chris Miller has extensive real estate experience, he’s new to our Windermere office but not to real estate on the island. So, we wanted to highlight him in our Q&A series. We’re delighted to have him. His expertise, fascinating background, and positivity are greatly appreciated.
What drew you to real estate?
I was drawn to real estate by the opportunity it gave me to run my own business and the freedom it gave me to give back to and be active in my community. It also afforded me the time to be the springboard diving coach on Bainbridge Island for almost 30 years.
What unique professional experiences or skills do you possess that enhance your abilities as a realtor?
My communication and organizational skills have been honed through successful production of events in a previous music career and concurrent athletic coaching career. When presented with a challenge, I relish researching for true and accurate information from original, reliable, and proven sources.
What personality traits do you think are important in this profession?
I believe this profession calls for the sincere personality traits of honesty, reliability, attention to the details, and of course, good etiquette.
Which areas do you serve and what do you love about the area?
I primarily serve the Bainbridge Island and North Kitsap areas. These are the places I know and understand. I love that Bainbridge Island and North Kitsap are the “midway” between Metropolitan Seattle and the wilderness areas of the Olympic Peninsula. It makes for a more relaxed pace of life and people seem more “grounded”. I love Puget Sound and the mountains.
How long have you lived here and what brought you here?
I moved here with nothing but my backpack in 1988 after hiking the Pacific Crest Trail. I stumbled on Bainbridge Island while taking a side track visit to the Hoh Rainforest. Back then Bainbridge Island reminded me very much of my hometown in the suburbs of NY near the New Jersey border, so I settled here under the notion of, “Go west young man, and seek thy fortune”.
How are you involved in the community?
Community involvement has been a big part of my life even as a child growing up. I have been on the Bainbridge Island Grand Old 4th of July production committee since 1992, been the springboard diving coach on the island from 1991 to 2019, I am a Chamber of Commerce Board of Director for a third time, been on the Kitsap County Association of Realtors board for two terms in the past, been a past president of the retired BI Lions Club, created the first electronic recycling event on Bainbridge Island in 2007 with my Business Partner Bill Barrow, and through him, I’ve been an avid supporter of the BI Kiwanis Club and their scholarship programs over the years.
What made you decide to work with Windermere?
I decided to take my business practice and license to Windermere Real Estate Bainbridge Island because it reminds me very much of the very first office I worked at here on Bainbridge Island. Deschamps Realty is long gone now but taught me the importance of being a community-minded business. Being led by a Managing Broker who is integrated into the community and encourages the office to respect and support the community is a great catalyst. The supportive culture of hardworking brokers and staff with the highest standards of professional practices and ethical principles is paramount. It is a joy to come to work every morning at the crack of dawn and be surrounded by colleagues and staff who exercise mutual support. Go Team!
Is there anything else you’d like to share with us?
You may recognize me from my real estate partnership with Bill Barrow over the past 20+ years. He afforded me many opportunities and I loved working with him. We worked well together. He was not only my partner but one of my best friends. Bill passed away on August 7, 2021, and I miss him very much.
We’re very fortunate to have Chris on our team. If you’d like to learn more about him, check out his very interesting bio; you’d be hard-pressed to find one that’s more unique.
Community Spotlight: Bainbridge’s Boys & Girls Club
The Boys and Girls Club of Bainbridge Island has persevered through the pandemic and has enriched the minds of countless youth. Since 2001, our Windermere Bainbridge Island office has proudly supported the Club by donating $250 per month, or $60,000 to date. Read on to learn more about the important work that this wonderful nonprofit does right here in our community.
Boys & Girls Club During the Pandemic
Our local Boys & Girls Club provides academic, engaging, and supportive out-of-school care for Bainbridge Island youth from kindergarten through 8th grade. This organization has also been an integral part of our community’s response to COVID-19. They, along with other local organizations, provided discounted rates and extended out-of-school programming.
Not even the pandemic could stop children from safely having fun and learning at the Boys & Girls Club of Bainbridge Island. The Club implemented remote learning programs to support children during stressful times. And, peer connection, adult mentorship, and engaging activities are still part of the curriculum. As part of their new virtual initiatives, they started offering Free Youth Force Job Readiness workshops.
This past year and a half, our Boys & Girls Club transformed from an after-school care center to a full-time, safe, and reliable place for kids to learn. Additionally, they’ve provided free childcare for frontline workers’ children. They continue to innovate by working with the Bainbridge Island School District and adapting their programs to meet the changing environment.
School Year Programs
Bainbridge’s Boys & Girls Club provides fun programs throughout the school year. There’s a program for K – 4th grade and a separate middle school program for 5th – 8th grade. Club members enjoy healthy snacks and choose from three to four program options. Kids can choose anything from cooking to sports, Minecraft to drone club. There is also a PowerHour to complete homework. 5th – 8th graders participate in PowerHour every day as well as a variety of program offerings from filmmaking to learning how to play the ukulele.
Get Involved
If you have a child or children who would like to get involved with our local Boys & Girls Club, the cost varies based on the program. You can find out more on their school year programs page. They also offer full-day camps during school breaks (winter, mid-winter, and summer). To see what the Club has been up to lately, check out their Facebook page.
Whether you have young children or not, it’s easy to see the long-lasting benefits of a nonprofit organization like this. The Club’s programs give students opportunities to try new things, gain confidence, make new friends, and learn in a safe, supportive environment. Every child deserves the opportunity to thrive. The Boys and Girls Club’s mission is to continue to uplift youth and help them reach their goals. If you would like to contribute to our local Club, you can easily donate online.
Second Quarter Market Review for Bainbridge Island
Bainbridge’s real estate market exceeded expectations in our second quarter. That’s even compared to last year’s similarly strong performance. We’ve compiled key highlights to keep you in the know about our local market.
Our Strong Seller’s Market
Bainbridge Island is still an increasingly competitive market, and we just had a strong second quarter. Since Bainbridge is so close to Seattle and retains its island beauty, it continues to attract buyers moving away from bigger cities as the way we work continues to trend toward remote work. There are still many more highly motivated buyers than sellers. Inventory remains low and demand remains high. Our Brokers can help navigate this competitive market. We’ve seen continued situations where buyers are outbid either by price or by an all-cash offer. Having a local expert as your guide can help you achieve success.
In the last five quarters outlined in the graph below, the continued growth trend in sales volume for the second quarter of 2021 is even higher than 2020’s second quarter. That was during the Covid lockdowns, which prompted a surge in home buying in places outside major cities – like Bainbridge Island and beyond. 
Average Prices
With our lower supply, we continue to see even higher prices. And, still, many buyers are showing that they are willing to meet the demands of Bainbridge’s pricing. As you can see below, the listing and sale prices both continue to rise. Sellers continue to benefit from our inventory shortage.
Market Insights from Matthew Gardner
In his most recent Monday with Matthew, our Chief Economist, Matthew Gardner, begins with the staggering fact that “prices have risen almost three-fold, as the cost to finance has dropped by 72%.” If the number sounds too good (or bad) to be true, that’s because it is. To get an accurate picture, you also have to consider inflation. Gardner points out that “just like other goods and services, the price of a house today is not directly comparable to the price of that same house 30 years ago”. That’s due to the influence of inflation in the long run. When you adjust for inflation, the rise in housing prices becomes less drastic. Without adjusting for inflation, “prices have risen by 268%.” But when you adjust for inflation, the “real prices have increased by 83.6%.” Therefore, “the increase is significantly lower than most people are talking about today.” This should come as welcome news to discouraged first-time home buyers.
Gardner then compares mortgage payments. Although, without adjusting for inflation, “mortgage payments have increased by 74.3%,” the inflation-adjusted “real payments are 10.7% lower!”. Of course, there are other monthly payments associated with homeownership like property taxes. They do not change with market fluctuations. But this still indicates “that prices have been able to rise so significantly because mortgage rates have dropped.” Additionally, home prices adjusted for inflation really haven’t skyrocketed, though many seem to think so. Again, this is great news for buyers.
There are some caveats, though. Gardner clarifies that “there are some markets across the country where the picture isn’t quite as rosy. In these places, prices have risen significantly more than the national average.” The Seattle metropolitan subunit, which extends around our local area, is one of these places. This is largely from the increasing affluence in relation to the tech boom.
Not a Housing Bubble
Gardner says the bottom line is “there are quantifiable reasons to believe that we are not in a national housing bubble today. But some markets will experience a significant slowdown in price growth given where prices are today in concert with the spectre of rising mortgage rates.” Ultimately, it’s still a strong seller’s market with an overall low supply and high demand. We expect to continue to see issues with affordability as prices and mortgage rates continue to climb.
First Quarter Market Review for Bainbridge Island
Bainbridge’s real estate market is picking up after the winter slowdown. We’ve compiled key highlights from our first quarter to keep you in the know about our local island market.
Our Strong Seller’s Market
Bainbridge Island has a very competitive market right now, and we just had a strong first quarter. With Bainbridge’s quaint island feel and its proximity to Seattle, it’s very appealing to people moving away from bigger cities as COVID-19 changes the way we work. There are still many eager buyers outnumbering sellers as inventory remains low and demand remains high. Our Brokers can help navigate this competitive market. We’ve seen many situations where buyers are outbid either by price or by an all-cash offer. Having a local expert as your guide can help you achieve success.
In the last five quarters outlined in the graph below, you can see that a similar growth trend in volume is repeated when comparing 2020’s first quarter to 2021’s first quarter. We saw quite a spike this past quarter from January to March. Get ready for the market to continue to heat up as we move from spring to summer.
With our lower supply, we’re seeing even higher prices. And, many buyers are willing to meet the demands of Bainbridge’s pricing. As you can see below, the listing and sale prices both continue to rise as sellers benefit from our inventory shortage. We’re beginning to see an affordability ceiling in which some people looking to buy on Bainbridge Island aren’t able to do so.
Affordability Issues and Market Insights
Matthew Gardner, Windermere’s Chief Economist, continues to track this affordability ceiling in his most recent Housing and Economic Update: “If the pace of home price growth continues, many households will start to be priced out” of what people can actually afford. As Gardner points out, we need more supply, and we need home prices to drop to alleviate this market strain.
Unfortunately, that might not happen fast enough for many hopeful homebuyers to make their dream a reality. Gardner reminds us that the cost of materials, recent storms, and the current housing market prices have all added to the cost of building new homes. This, in turn, will add to the listing price.
Additionally, Gardner points out that mortgage rates have risen after “a jump in bond yields has led rates to spike” as the country re-opens and economic activity increases. The resulting potential inflation causes the 10-year treasury interest rates to rise in hopes of attracting more buyers. However, it is still far below standard rates and shouldn’t be a concern for buyers right now.
Ultimately, it’s still a strong Seller’s Market with an overall low supply and high demand. We expect to continue to see issues with affordability as prices continue to climb.
Community Spotlight: Bainbridge Youth Services
Since 1970, Bainbridge Youth Services (BYS) has focused on young adults’ social and emotional wellbeing. As a proud community partner, we strongly support the vital work that their staff and volunteers do. From their youth outreach events to the services they provide, they are impacting many lives.
History of Bainbridge Youth Services
In 1962, youth counseling was only available in Bremerton, making it difficult for young adults on Bainbridge Island to find mental health services. Bainbridge residents created Bainbridge Youth Services to provide a safe space for the community’s youth. BYS was monumental in supporting young adults on their mental health journey. Taking inspiration from Bremerton’s Child Guidance Center, BYS started a confidential counseling program, and their programs and events grew over time. Their offerings include Summer Work Internships in partnership with the Rotary Club of Bainbridge and the Peer Tutoring Program.
Our Windermere Bainbridge Island colleagues greatly appreciate these important programs. “I’ve worked with BYS in the past through Raising Resilience, and I’ve supported BYS’s programs and events. I see tremendous value in their on-site, free counseling services and their student empowerment events. Students have shared very moving testimonials at fundraising breakfasts,” says Broker Julie Miller, M.Ed.
Community Impact
2020 was a challenging year for many organizations across Kitsap County, but that didn’t stop BYS. In 2020, BYS shifted focus to virtual events in order to continue supporting youth on Bainbridge Island. “We have been so impressed by how the youth in Kitsap County are so resilient during the pandemic. BYS’s counseling services have given youth a safe place to explore their feelings around the pandemic, grieve over missing events, friendships, and in-person learning,” says Courtney Oliver, Executive Director of Bainbridge Youth Services. “Our youth have persevered through creative outlets like the creation of a Pandemic Bucket List and Pen Pal letters.”
In 2020, Bainbridge Youth Services provided 414 youth with counseling services and skill-building programs, served 161 students of all ages through Peer Tutoring, recognized 16 youth through the Compassionate Act Celebration, connected 118 students to Career Exploration Services, and worked with 342 parents in Parent Education programs.
On Feb. 5, 2021, over 600 community members’ decorated luminaria bags were on display in downtown Winslow for BYS’s “Hope Glows”, a free event to celebrate hope in action. Photo courtesy of BYS. View decorated luminarias.
How You Can Get Involved
Bainbridge Youth Services welcomes community members’ support. To get connected, visit their Get Involved page, where you can volunteer, share ideas, and nominate youth. “Consistently offering free counseling, employment help, tutoring and so much more has proven to literally save lives on Bainbridge Island,” says Broker Shannon Dierickx, who is a former BYS board member. “BYS believes in our youth and being a small part of this organization is one of my proudest endeavors.” Bainbridge Youth Services is part of the fabric of our strong community, and we thank all those involved for their continued efforts to support and empower future generations.
Community Spotlight: Bainbridge Island Parks Foundation
If great schools top the list of what draws new homebuyers to Bainbridge Island, great parks aren’t far behind. With more than 1,500 acres of public park land and a trails system that stretches 40 miles in all directions, exploring and enjoying Bainbridge parks goes to the very heart of island living.
Just ask Windermere Bainbridge Island Broker Jason Shutt. Serving on the board of the Bainbridge Island Parks Foundation, Jason sees firsthand the payback that comes from the community’s investment in parks and trails.
“I grew up across the street from a large urban park and spent vacations going to national parks. So recreation is in my blood,” says Jason. He lives near Winslow town center with his wife Mairead and their three children. “I joined the Parks Foundation to ensure I live in a place that gives these same opportunities to others.”
An Island Rich in Parks
The island’s sprawling park system is managed by the Bainbridge Island Metro Park & Recreation District, a municipal agency. But islanders consistently ask for amenities above and beyond what general tax funding affords. That’s where the Bainbridge Island Parks Foundation comes in.
Closely aligned with, but independent from the Park District, the nonprofit Parks Foundation has raised more than $1,000,000 in private funds over the past five years. All funds raised have been for parks and trails projects, which benefit young and old alike. The Foundation led the development of Owen’s Playground, the island’s first accessible playground for kids of all abilities, at Rotary Park.
Photos of Owen’s Playground by Leo Phillips.
The new Pickleball Founders Courts at Battle Point Park opened last summer, built by Bainbridge Island Metro Park & Recreation District with support from the Parks Foundation. The six dedicated courts and plaza are pickleball’s first-ever permanent home on Bainbridge, honoring the game that was invented on Bainbridge Island in 1965.
Founders Courts. Photo by Leo Phillips.
Various Initiatives and Programs
The Foundation’s Community Grants program has supported countless smaller projects, from the high school sailing team’s fleet to diving boards and water stations at the Aquatic Center. Joe Richards, a Windermere Bainbridge Island Managing Broker and 22-year resident, has been involved with the Aquatic Center for over nine years and knows first-hand how beneficial it is. “The Masters swimming program, under the leadership of our world-class coach April Cheadle, has exceeded anything I could have hoped for. Thank you BI Parks for providing this person, this program, and this place for our community.”
The Foundation’s support also extends to environmental stewardship and restoration year-round, from Blakely Harbor Park to the Grand Forest, to smaller neighborhood parks islandwide. This is done through the Summer Trails Crew, Nonprofits Helping Parks, and other programs.
The Foundation’s current initiative, KidsUp! The Next Generation of Play at Battle Point Park is rebuilding the original KidsUp! as another inclusive, accessible playground. The centerpiece will be a giant, one-of-a-kind ferry boat play structure with climbable Orca whales. They will be “swimming” nearby to delight and educate kids about the natural environment of the Salish Sea.
“The more you learn about the Parks Foundation, the more you have to be impressed with its impact. Serving on the Foundation board has certainly opened my eyes,” Jason says. “I’m glad to share it with my clients, colleagues in the real estate community, and anyone else who asks. We have world-class parks here, and the Bainbridge Island Parks Foundation is a big reason why.”
The Leader in Trails
When it comes to Bainbridge’s trails, you can quickly see Bainbridge Island Parks Foundation’s impact. The Foundation works with the Park District, the City of Bainbridge Island, and other stakeholders to plan and fund new trails connecting parks and neighborhoods. Soon you’ll be able to hike from Winslow all the way to Gazzam Lake Nature Preserve – an unprecedented cross-island route. It’s sure to be a real draw for visitors. And, it’s already drawing people to the island. Online guides like TripAdvisor are full of testimonials from around the country, including hikers wowed by our trails.
Current and Future Benefits
The Foundation is about to launch a major Trails Campaign. This will fund the development of 10 miles of new trails over the next five years. With museums, restaurants, and other cultural spaces largely closed down and/or limited due to the pandemic, many of us have turned to the outdoors for connection and health. No matter where you live on Bainbridge Island, there’s a park or trail near you. The Bainbridge Island Parks Foundation has probably done something to make it better.
“COVID has really brought the importance of our Bainbridge parks into focus,” says Jason, who co-chaired the Sakai Park bond campaign, to create the 23-acre park five years ago. “The lockdown and social distancing have kept us all pretty close to home for the past year. But we have our parks and trails as an outlet to stay active and healthy and grounded. Our community is extremely fortunate, and it shows what a great investment our parks have been and continue to be.”
You can find out more about the Bainbridge Island Parks Foundation on their website, and you can support a park project that’s important to you.
Learn More about Bainbridge Island
If you’d like to learn more about our wonderful island community, check out our Newcomer’s Guide to Bainbridge Island. In it, you’ll find videos, articles, and helpful links to learn about our neighborhoods, schools, outdoor activities, local home buying resources, and much more.
Fourth Quarter Review and 2021 Forecast for Bainbridge Island
Bainbridge Island’s real estate market finished 2020 with a strong fourth quarter. We’ve compiled key stats below to provide a comprehensive review of our local market, as well as insights and a 2021 market forecast from Windermere Real Estate’s Chief Economist, Matthew Gardner.
Our Strong Seller’s Market
It’s still a strong seller’s market here on Bainbridge Island. Inventory remains low while demand is high. Buyers should be aware that the market is in a seasonal slowdown, but not as slow as expected, given COVID-19. There are still many buyers looking to move away from Seattle, but still remain close by; inventory remains low, giving the advantage to sellers. Our Brokers have seen an increase in situations where some buyers are outbid either by price or an all-cash offer.
In 2020’s fourth quarter, the average sale price on Bainbridge Island was up 12.9% year-over-year at a very strong $1.315M. Sale prices continue to hover close to listing prices, indicating strong demand.
2021 Market Forecast
In his final Monday with Matthew video of 2020, our Chief Economist, Matthew Gardner, shared his 2021 market forecast. He’s optimistic and for some good reasons.
First off, Gardner expects mortgage rates will not rise significantly on a local level, nor will they vary significantly throughout different regions across the U.S. Since mortgage rates are heavily tied to 10-year treasury maturity rates/yields, rates shouldn’t rise significantly until the entire market recovers from the COVID-19 slowdown. Another great sign is that Gardner expects home sales will grow, from 5.55% in 2020 to 5.93% in 2021. That’s “to a level we haven’t seen since 2006,” Gardner explains. With the continuation of historically low mortgage rates and the consistent increase of home values, 2021 looks bright.
“No! There isn’t a housing bubble forming. But price growth will slow & sellers may feel like it’s a collapse … it isn’t collapsing, it’s just normalizing.”
Matthew reminds us that there are pitfalls to be wary of in this strong market. First and foremost: “we need more inventory.” With the shuffling to new homes, and the huge wave of “first-time buyers [that] will continue to be a major player in the housing market,” many are making moves in a flood that will not persist. Buying during the pandemic will slowly settle. People are expected to stay in their homes longer, especially homeowners who have chosen to refinance. House values will rise due to the lack of supply, and that may price out many buyers who want to purchase in our area.
Western Washington’s Market Report
WESTERN WASHINGTON HOME SALES
- Total Sales: 26.6% increase from Q4/2019, but 8.3% lower than Q3/2020
- Homes for Sale: 37.3% lower than Q4/2019, and 31.2% lower than Q3/2020
- Pending Sales: up 25% from Q4/2019, but 31% lower than Q3/2020
- Average: $617,475 (up 17.4% from Q4/2019). This continues the trend of above-average appreciation of home values.
- Interestingly, prices between Q3 and Q4 of 2020 only rose by 1%. Is there a price ceiling we’re reaching?
- Mortgage rates will stay competitive as the market continues to charge toward a price ceiling and potential affordability issues.
- Average: 31 Days (16 days less than Q4 just one year ago)
- In Kitsap County, average days on market: 17
Conclusion
2021 will continue the trend of working from home, which keeps demand high. This, in turn, will drive sales growth, while affordability barriers will balance our current runaway appreciation for home values.
New Agent Spotlight: Ashley Mathews
We’re excited to highlight our new Broker, Ashley Mathews. Highly involved in our community, Ashley is passionate about helping people. She has a background in marketing and a range of industry experiences. Read on to find out more!
What unique professional skills do you possess that enhance your abilities as a realtor?
I started working at my mom’s travel agency at around 12 years old, which taught me organization in a transactional industry. After stints as a realtor in the fast-paced New York City market, I moved on to the marketing side of the business. I am a marketer at heart and bring the combination of my marketing expertise to my transactional knowledge of real estate, which benefits my clients.
What drew you to real estate?
Real estate has been the backdrop to my life for as long as I can remember. I love the ever-changing landscape, market conditions, and being able to impact someone’s life in such a monumental way.
How long have you lived here and what brought you here?
I have lived on Bainbridge Island for 12 years. I moved here from New York City after meeting a man from Bainbridge Island. He is now my husband of ten years.
What personality traits do you think are important in this profession?
I think it’s important to be a good listener, have the ability to roll with the punches, have a good sense of humor, and possess dedication and integrity.
What area do you serve and what do you love about it?
I serve Bainbridge Island and have a great deal of first-hand knowledge of Bainbridge’s unique neighborhoods, having lived in downtown Winslow, Fletcher Bay, the Sand Spit, and Pleasant Beach. I love its beauty and the fact that it can be whatever one desires. Sometimes I enjoy its quiet serenity. Other times, I want to enjoy one of our award-winning restaurants. There is something here for everyone.
What made you decide to work with Windermere?
My passion for service has always made me a fan of the Windermere Foundation and its work. The Windermere Brokers on Bainbridge Island have such a great reputation and I wanted to be on their team. Blue is also my favorite color.
How are you involved in the community?
I serve as a board member for the Bainbridge Island Museum of Art, and I serve as Planning Commissioner for the City of Bainbridge Island. Additionally, I serve as the Chair of the Board Development Committee for Treehouse For Kids and sit on its Board of Directors Executive Committee. For over a decade, I’ve been involved in Bainbridge Island’s vibrant equestrian community and am a member of the Bainbridge Island Saddle Club. I love the arts and have performed with the Bainbridge Chorale and on the Bainbridge Performing Arts stage in “Chicago” and “Cats”. I am also a lifetime member of the NAACP.
Is there anything else you’d like to share with us?
I have a 19-year-old daughter who inspires me every day as she navigates our new normal as a college freshman, as well as a beautiful and not so smart Doberman named Grace and a beautiful and very smart horse named Nektonia. I love to meet new Islanders so if you see me come say hi. Human connection is so important these days.
We’re so glad that Ashley Mathews has joined us. We know her local expertise and her integrity make her an excellent choice for buyers and sellers. You can connect with her on Facebook or through her website.
