The number of home buyers actively searching for properties in North Tacoma has tapered off since the spring, but multiple offer situations are still common and lots of houses are selling over list price. In July of this year, 47% of homes in Tacoma sold above list price compared to just 32% of homes in Seattle. The “Amazon effect” is in full force, with home buyers priced out of the Seattle market continuing to flock to Tacoma.
North Tacoma Third Quarter Update
Certain homes in certain neighborhoods are selling at a premium, but the median home price in North Tacoma isn’t significantly higher now than it was at this time last year. Affordability issues are contributing to this flattening price trend.
208 single family homes were sold in zip codes 98403, 98406 and 98407 in the third quarter of 2019 – a 6% decrease in sales activity compared to the third quarter of 2018.
Homes in North Tacoma continue to sell quickly – two to three weeks from “active” to “pending” on average.
With just one month’s worth of active inventory available for sale in North Tacoma, it remains a seller’s market. A balanced market requires 5-6 months of inventory.
Current Market Conditions
- A recent study by Redfin ranks Tacoma as the country’s fourth hottest housing market - behind Alexandria and Arlington, VA and Grand Rapids, MI.
- Moody’s Investor Services has upgraded Washington State’s credit rating to AAA (the highest rating possible), a first for the Evergreen State. Moody’s predicts a stable outlook for the next 12-24 months, which bodes well for the housing market.
- Despite price declines in major housing markets through much of 2019, real estate data firm CoreLogic predicts an annual housing price increase of 5.4% by July of 2020 thanks to rising family incomes, low mortgage rates and older millennial buyers.
As the real estate market begins to shift, it’s critical for buyers and sellers to seek expert advice. If you’re thinking about buying or selling a home in the area, please contact us to discuss how we can put our knowledge and experience to work for you.
Mark Pinto is a top-producing Realtor with Windermere Chambers Bay, specializing in residential real estate in Tacoma, Gig Harbor, University Place and Lakewood.
Mark Pinto: (253) 318-0923
MarkPinto@windermere.com
