Tariffs, Interest Rates, and Kitsap Dreams: What Is Going On With the Housing Market?
by Adam Foley, Realogics Sotheby’s International Realty
There’s a quiet tension in the air right now—and I’m not just talking about the pine pollen.
In the world of housing, we’re watching a kind of stand-off unfold. On one side, you’ve got new tariffs on imported goods—lumber, steel, appliances, all the bones that build a home. On the other, you’ve got the Federal Reserve holding firm on high interest rates, with growing pressure from politicians (Trump, especially) to start cutting them.
It’s the kind of moment where national policy starts showing up right in your backyard. So let’s talk about what that means—especially if you live here in Kitsap County and you’re trying to figure out whether now’s the time to buy, sell, or just pour another cup of coffee and wait.
So, Why Are Tariffs Making Homes More Expensive?
In short: tariffs raise the cost of materials. So if you’re hoping to build, remodel, or buy a new construction home—those costs are getting passed along to you. Nationally, the average increase is pegged at around $9,200 per home. That’s not nothing.
Here in Kitsap, where we’ve already got limited inventory and strong demand from folks priced out of Seattle or looking for more land and quiet, this adds even more pressure. Builders may slow down. Prices may climb. And that charming Craftsman with the wraparound porch just got a little less accessible for first-time buyers.
The Fed Isn’t Budging—At Least, Not Yet
Now, about those interest rates. You’d think with all this economic uncertainty, the Fed might be itching to cut them. But so far, they’re holding the line—insisting inflation isn’t quite tamed enough yet. That decision puts them at odds with political pressure (especially from Trump, who’s making rate cuts a campaign talking point).
It’s become a bit of a game of chicken: the Fed wants to stay the course, even if it slows the economy. Meanwhile, homeowners and hopeful buyers are watching and waiting. Mortgage rates did dip slightly (to around 6.55%), but it’s more of a flicker than a full-on shift. We’ll likely know a lot more by summer—this is the season where interest rate policy could change… or double down.
Are We in a Buyer’s Market or a Seller’s Market?
Ah, the golden question. The answer?
Neither, really. It’s a standoff.
Technically, we’re still leaning seller’s market in Kitsap County. Inventory is low, and demand is steady. The median price is holding around $540,000, and homes are moving in about 35 days, which means people are still out there making offers. If you’re selling a well-priced home in a good location, you’ll likely see real activity.
But buyers are more cautious—and for good reason. Monthly payments are high. Confidence is mixed. And every decision comes with a calculator in one hand and a weather eye on the Fed.
What Does This Mean For You?
If you’re a buyer: now’s the time to run your numbers, get clear on what you actually want, and watch the rates closely. If the Fed does lower rates this summer, it could open a floodgate—and prices might spike as more buyers jump back in.
If you’re a seller: you haven’t missed the window. But pricing right matters more than ever. Gone are the days of throwing a high number out and watching the bidding wars roll in. Today’s buyers are smart, savvy, and reading every line of that inspection report.
Final Thought
We live in a place where people still build with their hands, garden in the rain, and dream of homes with light and space. And that’s not going away—no matter what the Fed does. Real estate isn’t just economics. It’s personal. It’s about timing, trust, and vision.
If you want someone to walk through this season with—who won’t sugarcoat the trends but will always bring it back to you—I’d be honored to help.
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Adam Foley
Realogics Sotheby’s International Realty
📍 Bainbridge Island, WA
📞 206.947.4738
📬 adam.foley@rsir.com
