Unmet buyer demand and competitive bidding situations continue to push local home prices higher, despite broad economic uncertainty and persistently high mortgage interest rates.
First Quarter Market Update
for University Place and Fircrest
The median sale price for a single family home in University Place and Fircrest in the first quarter of this year was $660,000 – 5% higher than it was 12 months ago. About 40% of the listings that have gone pending in zip codes 98446 and 98467 in the past three months generated multiple offers. Until available housing increases enough to meet local buyer demand more successfully, home prices will almost certainly continue rising.
72 single family homes were sold in zip codes 98466 and 98467 in the first quarter of 2025 – an 18% increase in sales activity when compared to the first quarter of 2024 but still low by historic standards.
The median home price in zip codes 98466 and 98467 is $660,000 – 5% higher than it was 12 months ago.
The pace of the housing market has slowed a bit in Fircrest and UP, but homes are still selling relatively quickly if they’re well-priced. Time from “active” to “pending” is about 4-5 weeks on average.
Housing inventory levels are still low in University Place and Fircrest and are unlikely to change in the foreseeable future.
Current Market Conditions
- According to recent data from Zillow, the typical monthly mortgage payment has nearly doubled since 2020 because of rising home prices and increased mortgage interest rates.
- 30-year fixed mortgage interest rates are hovering around 6.75% with significant volatility from week to week.
- In the face of rising concerns about a recession in 2025, it’s important to note that home values don’t typically drop during a recession, but mortgage interest rates do.
- U.S. News and World Report’s latest annual Homebuyer Sentiment Survey revealed that 63% of potential homebuyers take climate risks into account when considering where to live. This helps to explain increasing interest in the Pacific Northwest.
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 Commencement Bay Brokers, specializing in residential real estate in Tacoma, Gig Harbor, University Place and Lakewood.
Mark Pinto
(253) 318-0923
[email protected]
Contact Mark Pinto