The median home price in Tacoma’s North End is 15% higher today than it was just 12 months ago, due in large part to strong buyer demand, historically low interest rates and unbelievably low housing inventory levels.
Fourth Quarter Market Update
for North Tacoma
On January 1st of this year, there were only 9 single family homes available for sale in zip codes 98403, 98406 and 98407 combined. Nine houses total. That’s less than a week’s worth of inventory. A balanced market requires 4-6 months of inventory. The current market favors sellers like no market we’ve ever seen. More new listings are expected to hit the market as we head into the first few months of the year, but strong buyer demand is likely to absorb that new inventory quickly, continuing to push home prices higher.
181 single family homes were sold in zip codes 98403, 98406 and 98407 in the fourth quarter of 2020 – essentially equal to the number of homes sold in the fourth quarter of 2019 in spite of limited supply. The average time on market was less than three weeks.
Current Market Conditions
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- Data from Redfin suggests Tacoma is the hottest housing market in the nation with half of all homes pending sale in just six days, 58% of homes selling above list price in November and a current average home sale price that’s 17% higher than it was a year ago.
- According to Freddie Mac, Fannie Mae and the National Association of Realtors, interest rates are likely to remain at or near 3% in 2021, continuing to fuel buyer demand.
- With the COVID-19 vaccine roll out underway and the end of the pandemic in sight, homeowners are expected to feel more comfortable putting their houses on the market, adding more inventory to meet increased demand.
- Zillow predicts a 22% increase in home sales activity in 2021, which would be the largest year over year increase since 1983.
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
