The housing market seems to be one of the few bright spots in an otherwise bleak national economic picture.
Third Quarter Market Update for North Tacoma
227 single family homes were sold in zip codes 98403, 98406 and 98407 in the third quarter of 2020 – a 12% increase in sales activity compared to the third quarter of 2019. Some portion of this increase may have been due to a COVID-related shift in the busy buying season from spring to summer this year.
Home values continue to rise in Tacoma’s North End where the current median home price is $490,000 – 12.6% higher than it was just a year ago in spite of the pandemic. Historically low interest rates, persistently low inventory levels and buyer influx from Seattle are all contributing to increases in home prices and sales activity here.
Current Market Conditions
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- National pending home sales in August were 24% higher than they were in August of 2019, and home purchase mortgage applications were up 25% - signs of an accelerating real estate market.
- Buyers seem particularly interested in larger houses that allow them to work from home, a preference that is predicted to outlast the pandemic.
- WalletHub compared 300 U.S. cities of varying sizes across 24 indicators of housing market attractiveness and economic strength. Tacoma ranked #13 on their list of Best Places to Buy a House, though affordability was a notable concern.
- Permits for single family home construction jumped in August to its highest level since 2007, reflecting an increase in builder confidence. Rising costs for materials and labor could dampen that enthusiasm.
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
