The North Tacoma housing market isn’t as robust as it was during the pandemic, but it’s continuing to strengthen.
Second Quarter Market Update
for North Tacoma
Sales activity is up 9% year over year in zip codes 98403, 98406 and 98407, and the median home price is about 3% higher now than it was 12 months ago. Demand is still outpacing supply in spite of high interest rates, and listings are moving from “active” to “pending” in about 3 weeks on average. We anticipate this gradual strengthening will continue for the foreseeable future, picking up speed when mortgage interest rates begin to drop.
180 single family homes were sold in zip codes 98403, 98406 and 98407 in the second quarter of this year – a 9% increase in sales activity when compared to the second quarter of 2023.
North Tacoma home values have finally recovered after dropping in response to increased mortgage interest rates in 2022. The median home price in North Tacoma is back up to $645K.
Homes are selling quickly in North Tacoma, particularly if they’re well-priced. Time from “active” to “pending” is about 3 weeks on average.
Housing inventory levels remain low in zip codes, 98403, 98406 and 98407. We don’t expect that to change any time soon.
Current Market Conditions
- Low inventory levels continue to apply modest but sustained upward pressure on home prices. As a result, industry experts are predicting a 3% rise in home values nationwide this year.
- Yun, Chief Economist for the National Association of Realtors, predicts 5.2M home sales in 2024, which would represent an 8% increase in sales volume compared to 2023.
- The Fed is expected to begin cutting their benchmark rate in the second half of this year, and mortgage interest rates should begin dropping in response. The Mortgage Bankers Association and National Association of Realtors are both expecting mortgage rates in the 6.5% to 6.75% range by year’s end. Rates are currently hovering around 7%.
- Because interest rates are still high and home prices are continuing to rise, housing affordability continues to worsen. First American’s Real House Price Index report for May cites a 9% year over year drop in housing affordability.
In the current real estate marketplace, it remains 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 Engel & Völkers Chambers Bay, specializing in residential real estate in Tacoma, Gig Harbor, University Place and Lakewood.
Mark Pinto
(253) 318-0923
[email protected]
Contact Mark Pinto