The Fircrest/UP housing market performed better than the broader regional housing market in the second quarter of this year.
Second Quarter Market Update
for University Place and Fircrest
Despite persistently high mortgage interest rates, we saw year over year increases in sales activity and home values in University Place and Fircrest in the second quarter of this year. The increases were more pronounced in 98466 than 98467.
100 single family homes were sold in zip codes 98466 and 98467 in the second quarter of 2025 – an 11% increase in sales activity when compared to the second quarter of 2024, though still low by historic standards.
The median home price in zip codes 98466 and 98467 is $701,000 – 7% higher than it was 12 months ago.
The pace of the housing market remains brisk in Fircrest and UP. Time from “active” to “pending” is about 3 weeks on average.
Housing inventory levels are still low in University Place and Fircrest and are unlikely to rise in the foreseeable future.
Current Market Conditions
- Mortgage interest rates are still hovering around 7%, fluctuating from week to week. Cost-sensitive buyers are paying close attention to the rate fluctuations, making them more interested in purchasing when rates drop and less so when they tick up again.
- According to Newsweek, demand for new homes has dropped to its lowest level in nearly three years, prompting home builders to pull back on construction. Affordability issues are largely responsible for weakening demand.
- According to the National Association of Realtors, 17% of all home buyers purchasing from mid-2023 to mid-2024 bought a “multi-generational” home, up from 14% the year before. Housing affordability is likely one of the key forces behind this increase.
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.
Contact Mark Pinto