Economic and political uncertainty, largely related to the war in Iran, is having a noticeable impact on the housing market.
First Quarter Market Update
for North Tacoma
Sales activity in North Tacoma was down 15% in the first quarter of this year, and the median home sale price for zip codes 98403, 98406 and 98407 was down 11% year over year. That doesn’t necessarily mean that individual homes have lost 11% of their value, but the drop in median home prices in combination with a drop in sales activity is concerning. It’s taking a bit longer to get houses under contract, and inventory levels have risen, which doesn’t bode well for the spring market.
Only 94 single family homes were sold in zip codes 98403, 98406 and 98407 in the first quarter of 2026 – a 15% drop in sales activity when compared to the first quarter of 2025.
The median home price in zip codes 98403, 98406 and 98407 is $608,000 – 11% lower than it was 12 months ago.
Though some listings are still selling quickly, the average time from “active” to “pending” rose to 38 days in the 1st quarter of this year. That means it’s taking about 1-2 weeks longer to get houses sold when compared to last year.
Housing inventory levels are up a bit in North Tacoma but still relatively low when compared to historic averages.
Current Market Conditions
- Mortgage interest rates have risen again, with the average 30-year fixed rate hovering around 6.5%. National Association of Realtors chief economist Lawrence Yun predicted that rates could rise to 7% if oil prices reached $100 a barrel. That didn’t happen, but there’s clearly still an unfavorable connection between oil prices and interest rates.
- According to real estate data source ATTOM, fewer investors have been flipping properties lately, in large part because the return on investment just isn’t as attractive as it used to be. This is likely due to a flattening in home values and a continued increase in the cost of labor and materials.
- Efforts are being made at the federal level to ease the housing crisis by making homes easier to build and easier to buy, including proposed legislation to limit single family home purchases by institutional investors. Limiting investor access to the housing market should make more homes available for regular buyers
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