The Fircrest/UP housing market has been unpredictable since mortgage interest rates rose in early 2022.
Third Quarter Market Update
for University Place and Fircrest
With home sales activity in University Place and Fircrest ebbing and flowing from one quarter to the next, it’s been difficult to identify trends for the past few years. That said, the local housing market seems to be holding fairly steady at the moment. Year over year sales activity remains largely unchanged, and the median home price in zip codes 98466 and 98467 rose to $676,500 – 8% higher than it was 12 months ago.
101 single family homes were sold in zip codes 98466 and 98467 in the third quarter of this year – essentially unchanged from the third quarter of 2024.
The median home price in zip codes 98466 and 98467 is $676,500 – 8% higher than it was 12 months ago.
The pace of the housing market has slowed a bit in Fircrest and UP. Time from “active” to “pending” is about one month on average.
Housing inventory levels remain low in University Place and Fircrest and are unlikely to rise in the foreseeable future.
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