The North Tacoma housing market has been fairly inconsistent since mortgage interest rates rose in early 2022.
Third Quarter Market Update
for North Tacoma
With sales activity in North Tacoma ebbing and flowing from one quarter to the next, it’s been difficult to make predictions for the past few years. After a sluggish second quarter this year, the market was unseasonably robust in the third quarter. Sales activity was up 21% year over year, and the median home price in zip codes 98403, 98406 and 98407 rose to $675,000 – 8% higher than it was 12 months ago.
187 single family homes were sold in zip codes 98403, 98406 and 98407 in the third quarter of 2025– a substantial 21% increase in sales activity when compared to the third quarter of last year.
The median home price in zip codes 98403, 98406 and 98407 is $675,000. That’s 1.5% higher than it was just three months ago and 8% higher than it was 12 months ago.
On average, listings have been moving from “active” to “pending” in about three weeks – not as quickly as they were selling earlier this year but still quickly objectively speaking.
Inventory levels have ticked up just a bit but are still quite low with no sign of significant change in the near to mid term.
Current Market Conditions
- Though higher than desired inflation persists nationwide, weakness in the jobs market may prompt the Fed to make additional rate cuts as we close out 2025 and head into 2026.
- The average 30-year-fixed mortgage rate is currently hovering around 6.5%.
- Economists with the National Association of Realtors predict that approximately 5.5 million additional households will be able to afford a median priced home if and when the average mortgage rate drops to 6%.
- We’ve already seen a slight improvement in housing affordability since the Fed dropped their benchmark rate in September. Owning a home now takes about 31% of the typical home buyer’s income, down from a recent peak of 35% in October of 2023.
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