Unmet buyer demand and competitive bidding situations continue to push North Tacoma home prices higher, despite broad economic uncertainty and persistently high mortgage interest rates.
First Quarter Market Update
for North Tacoma
The median sale price for a single family home in North Tacoma in the first quarter of this year was $687,500 – 7% higher than it was 12 months ago. About HALF of the listings that have gone pending in zip codes 98403, 98406 and 98407 in the past three months generated multiple offers. Until housing supply increases enough to meet buyer demand more successfully, North Tacoma home prices will almost certainly continue rising.
106 single family homes were sold in zip codes 98403, 98406 and 98407 in the first quarter of 2025 – almost identical to the level of activity that we saw in the first quarter of 2024.
The median home price in zip codes 98403, 98406 and 98407 is $687,500. That’s 7% higher than it was 12 months ago and well above the typical annual appreciation rate of 3-4%.
Homes are selling quickly in North Tacoma if they’re well-priced. Time from “active” to “pending” is about 4 weeks on average.
Current housing inventory levels are down in zip codes, 98403, 98406 and 98407, which is typical for this time of year. Though inventory is likely to increase as we head into the spring, it’s unlikely that we’ll see more than 2-3 months of inventory any time soon.
Current Market Conditions
- According to recent data from Zillow, the typical monthly mortgage payment has nearly doubled since 2020 because of rising home prices and increased mortgage interest rates.
- 30-year fixed mortgage interest rates are hovering around 6.75% with significant volatility from week to week.
- In the face of rising concerns about a recession in 2025, it’s important to note that home values don’t typically drop during a recession, but mortgage interest rates do.
- U.S. News and World Report’s latest annual Homebuyer Sentiment Survey revealed that 63% of potential homebuyers take climate risks into account when considering where to live. This helps to explain increasing interest in the Pacific Northwest.
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.
Mark Pinto
(253) 318-0923
[email protected]
Contact Mark Pinto