Homes in North Tacoma are still selling at a decent clip, but the curve of the market seems to have flattened out.
Fourth Quarter Market Update
for North Tacoma
The median home price in zip codes 98403, 98406 and 98407 is $622,225 – about 2% lower than it was 12 months ago – and year over year sales activity in the 4th quarter was down about 3%. Inventory levels remain extremely low, suggesting that the excess inventory we typically see at the end of the calendar year has already cleaned up. We’ll see an influx of new listings as we head into the first quarter of 2026, but “slow and steady” are likely to be the watchwords for the year.
140 single family homes were sold in zip codes 98403, 98406 and 98407 in the fourth quarter of 2025 – a 3% decrease in sales activity when compared to the fourth quarter of 2024.
The median home price is zip codes 98403, 98406 and 98407 is $622,225 – about 2% lower than it was 12 months ago.
It feels like it’s been taking longer for listings to sell in North Tacoma, but the average time from “active” to “pending” in the 4th quarter was only about a month.
We tend to see an uptick in inventory in the fourth quarter of the year, but not in 2025. We’ve got just one month’s worth of housing stock as we head into the new year.
Current Market Conditions
- National Association of Realtors chief economist Lawrence Yun is predicting a 14% increase in sales activity in 2026 and a 4% increase in home values. Other real estate economists aren’t quite as optimistic, with many predicting a flat housing market in the coming year.
- After three separate rate cuts in 2025, the Federal Reserve has indicated that they’ll only be cutting rates once in 2026.
- Mortgage interest rates, currently hovering around 6.25%, are unlikely to move significantly up or down any time soon.
- Redfin and Fortune Magazine are both predicting modest improvements in housing affordability in 2026, due to flattening home prices and rising wages among potential home buyers.
- Housing affordability may continue to be an issue in Washington State, where our median home price ($592K) is the third highest in the country, according to data from Zillow. Only California and Massachusetts have higher statewide median home prices
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.
Contact Mark Pinto