The UP/Fircrest housing market isn’t as robust as it was during the pandemic, but it is continuing to strengthen.
Second Quarter Market Update
for University Place and Fircrest
Sales activity is essentially unchanged year over year in zip codes 98466 and 98467, but the median home price is about 5% 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 2-3 weeks on average. We anticipate this gradual strengthening will continue for the foreseeable future, picking up speed when mortgage interest rates begin to drop.
Only 90 single family homes were sold in zip codes 98466 and 98467 in the second quarter of 2024 – essentially unchanged when compared to the second quarter of 2023 and very sluggish historically speaking.
UP/Fircrest home values are rising, but they still haven’t reached the peak numbers that we saw just before mortgage interest rates jumped in 2022. The median home price in University Place and Fircrest is $655,500.
Homes are selling quickly in Fircrest and UP, particularly if they’re well-priced. Time from “active” to “pending” is about 2-3 weeks on average.
Housing inventory levels have ticked up slightly in zip codes 98466 and 98467, but inventory is still what we would consider quite low.
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.
- Lawrence 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