Economic and political uncertainty related to the war in Iran is having a noticeable impact on the housing market – but the impact doesn’t seem to be consistent from zip code to zip code.
First Quarter Market Update
for University Place and Fircrest
First quarter sales activity was down a whopping 50% year over year in zip code 98467, where the median home sale price was down 3%. The housing market has performed much better in zip code 98466, where first quarter sales activity was up 5% year over year and the median home sale price was up 11%. Taken as a whole though, University Place and Fircrest saw a 19% drop in sales activity and a 6% increase in the median home sale price in the first quarter of this year.
Only 59 single family homes were sold in zip codes 98466 and 98467 in the first quarter of 2026 – a dramatic 19% decrease in sales activity when compared to the first quarter of 2025. This drop in activity was driven entirely by flagging sales in zip code 98467.
The median home price in zip codes 98466 and 98467 is $700,000 – 6% higher than it was 12 months ago.
The pace of the housing market remains steady in Fircrest and UP. Time from “active” to “pending” is about 4 weeks on average.
Housing inventory levels have ticked up in zip code 98467 but are likely to drop down again as we head towards summer.
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. Efforts include proposed legislation that would limit the ability of institutional investors to purchase single family homes, making 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