The Great Housing Reset: What 2026 Means for your Kitsap PCS

A Return to Market Stability on the Peninsula The real estate market is finally finding its footing. After years of "frozen" inventory and high interest rates, 2026 is shaping up to be the year of the "Great Housing Reset." For military families headed to Naval Base Kitsap (NBK), this means a shift away from the chaotic bidding wars of the past toward a steadier, more predictable environment.

While the pandemic-era volatility is behind us, the market isn't just "slowing down"—it’s maturing. We are moving toward a healthy balance in Silverdale, Poulsbo, and Bremerton that rewards prepared buyers and realistic sellers.

Mortgage Rates and the Affordability Pivot

Mortgage rates remain the primary concern for our community. Most major forecasts, including those from Fannie Mae, predict that the 30-year fixed rate will hover in the low 6% range throughout 2026, with potential dips toward 5.9% by year-end.

While these aren't the 3% rates of the past, they represent a "new normal" that is significantly more manageable than the peaks of 2024. More importantly, for the first time in years, wage growth and 2026 BAH increases are finally catching up to home price trends. For a military family, this pivot means your buying power is actually expanding as you look for homes in Port Orchard or Kingston.

Inventory Growth: More Power for the Buyer

Inventory levels are finally rising, with Realtor.com predicting a nearly 9% increase in active listings for 2026. For a military family arriving at NBK, this means more choices and less pressure to "settle."

Because there are more homes for sale, buyer power is back. You can once again prioritize home inspections and negotiate seller concessions. As NAR chief economist Lawrence Yun notes, buyers are no longer willing to overlook major repairs or pay massive premiums. In Kitsap, this means we can be selective, ensuring the home you buy is a solid investment for when you eventually PCS out.

New Construction and Builder Incentives

Interestingly, 2026 may be a slower year for new single-family home starts. However, builders with existing inventory are offering aggressive incentives to keep homes moving. If you’re looking at new construction in North Kitsap, look for mortgage rate buydowns and closing cost credits. These "hidden" benefits can effectively lower your monthly payment more than a standard market rate would allow. Just know that the agent "on-site" works for the seller, not you. We always recommend you have your own representation even if it is a new construction home. 

What This Means for the Kitsap Military Community

For our community, 2026 offers a window of opportunity. With national price growth expected to be a modest 1% to 2%, your home equity remains safe, but you aren’t fighting an overheated market.

• If you are selling: Focus on realistic, data-driven pricing. The "haves and have-nots" market means that overpriced homes in Kitsap will sit.
  
  
• If you are buying: Use your VA loan benefits to take advantage of the stabilizing rates and increased inventory.
  
  

The Bottom Line The 2026 market is about "slow and steady" wins. It is a great time to find a home that fits your long-term financial goals while providing the lifestyle your family deserves here in Washington.

Ready to plan your 2026 landing? 🤓 Let’s look at the inventory hitting the market this week and see where your BAH goes the furthest!