COVID-19 had an undeniable impact on the local housing market this spring, but market activity in North Tacoma seems to be stabilizing as buyers and sellers acclimate to the new normal.
Second Quarter Market Update
for North Tacoma
Home sales activity was down significantly in North Tacoma in the second quarter, largely as a result of COVID-19. Despite the market slowdown, year over year home values have continued to rise in all three zip codes.
Homes in North Tacoma are selling incredibly quickly – typically within just two weeks on market – and inventory levels remain tight. Buyer demand continues to outpace seller supply.
Current Market Conditions
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- Showing activity dropped off significantly during the first few weeks of the COVID-19 shutdown, but buyer interest has surged since then. Showing activity at the end of June was 50% HIGHER than it was at the end of June 2019.
- Mortgage applications for home purchases are up 20% when compared to last year and rates remain incredibly low, approaching 3% for a 30-year loan.
- Though buyer interest is strong, sellers have been slower to acclimate to the pandemic. The number of new listings hitting the market in June was 25% lower than it was in June of last year.
- The housing market is outperforming other sectors of the economy in spite of high and persistent unemployment numbers, and home values are expected to hold steady into 2021 according to data from the National Association of Realtors, CoreLogic and Freddie Mac.
Buyer interest in suburban and rural home listings is on the rise – up by about 15% from last year according to Realtor.com – and buyers working from home are increasingly interested in more space and more privacy. Open floor plan living has fallen out of favor. Danielle Hale, chief economist for Realtor.com, also reports increased interest in the luxury and second home market, particularly second homes in driving distance of primary residences. How long these trends will last remains to be seen.
In the current economic climate, 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 Windermere Chambers Bay, specializing in residential real estate in Tacoma, Gig Harbor, University Place and Lakewood.
Mark Pinto: (253) 318-0923
MarkPinto@windermere.com
