Homes in University Place and Fircrest are still selling at a decent clip, but year over year price gains have been modest.
Fourth Quarter Market Update
for University Place and Fircrest
The median home price in zip codes 98466 and 98467 is just 2.5% higher than it was 12 months ago, but year over year sales activity in the 4th quarter was up a whopping 20%. That means more homes have been selling, but prices have remained fairly steady. The excess inventory we typically see at the end of the calendar year has mostly cleaned up. We’ll see an influx of new listings as we head into the first quarter of 2026, but home values are likely to remain flat.
90 single family homes were sold in zip codes 98466 and 98467 in the fourth quarter of 2025 – a dramatic 20% increase in sales activity when compared to the fourth quarter of 2024.
The median home price in zip codes 98466 and 98467 is $672,500 – just 2.5% higher than it was 12 months ago.
The pace of the housing market has been brisk in Fircrest and UP. Time from “active” to “pending” is about 3-4 weeks on average.
Housing inventory levels remain low in University Place and Fircrest and are unlikely to rise in the foreseeable future.
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