We’ve noticed a definite shift in the local housing market since early July. Showing activity has dropped off, and bidding wars are less common than they were in the spring.
Third Quarter Market Update
for North Tacoma
It remains a seller’s market and home prices continue to rise, but the intensity of the housing market has cooled. New listings that would have yielded 30-40 showings in the spring are only seeing 10-15 showings in the current market. Instead of a dozen offers, new listings are now more likely to generate one or two.
This market slowdown was the subject of a recent report from iBuying giant Opendoor, which indicated that almost 40% of potential homebuyers have put their housing search on hold. The most common reasons cited were persistent concerns about COVID-19 and feeling overwhelmed by the frenzied pace of the housing market. We expect many of these buyers will return to the market by early 2022, if not before, but the pace of the housing market will be more measured than it has been.
256 single family homes were sold in zip codes 98403, 98406 and 98407 in the third quarter of 2021 – a 9% increase in sales activity compared to the third quarter of 2020. Most of that increase was seen in zip code 98406.
Current Market Conditions
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- The current median home price in Tacoma’s North End is $600,000 – 22% higher than it was just 12 months ago. While this rate of appreciation is undeniably high, it’s important to note that it’s lower than the year over year price gains we saw in the spring. Further evidence that the market is tapering.
- Some sellers have been overestimating what the market will bear when pricing their homes for sale, necessitating more price reductions than we’ve seen in the recent past.
- Based on a poll of 40 housing analysts, a recent Reuters report predicts a 5-6% increase in home prices nationwide in calendar 2022. Gains in hotter markets like North Tacoma will likely be higher than that, but not nearly as high as the gains we’ve seen for the past few years.
- 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.
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 Windermere Chambers Bay, specializing in residential real estate in Tacoma, Gig Harbor, University Place and Lakewood.
Mark Pinto: (253) 318-0923
MarkPinto@windermere.com
