The pace of the housing market in University Place and Fircrest continues to accelerate. Most listings are selling in multiple offers, often well above list price, pushing home values higher and higher.
First Quarter Market Update
for University Place
Despite the frenzied pace of the real estate market, it’s important to note that the underlying fundamentals of the market remain solid. Housing demand continues to outpace supply nationwide with just two months of available inventory (compared to 11 months of inventory in 2007). Strict lending guidelines have helped keep mortgage default risk low, and home equity levels are extremely high. 41% of Washington State homeowners have at least 50% equity in their homes. Taken altogether, these factors make a 2008-style market correction unlikely.
102 single family homes were sold in zip codes 98466 and 98467 in the first quarter of 2021 – just a 1% increase in sales activity when compared to the first quarter of 2020.
Current Market Conditions
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- We saw a drop in existing home sales nationwide from January to February of this year, but February sales numbers were still 9% higher than they were in February of 2020.
- February home sales over $1 million were up 81% nationwide compared to February of last year, making housing affordability an increasing concern.
- 74% of homes listed for sale nationwide went from active to pending in less than a month.
- Windermere Chief Economist Matthew Gardner predicts that 30-year fixed rates will rise above 3.5% by the fourth quarter of this year and will crest 4% in early 2022. Rate increases may help to slow rising home prices by diminishing buyer purchasing power.
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 Windermere Chambers Bay, specializing in residential real estate in Tacoma, Gig Harbor, University Place and Lakewood.
Mark Pinto: (253) 318-0923
MarkPinto@windermere.com
