The median home price in University Place and Fircrest has risen a whopping 25% in the past 12 months, but it feels like the housing market may finally be slowing down.
Second Quarter Market Update
for University Place
We’ve noticed a slowdown in the local housing market in the past few weeks. Showing activity and pending sales are down, and we’re starting to see some price reductions. This shift could be temporary, as potential homebuyers turn their attention to summertime fun, or it could be a much needed market rebalance.
With the first wave of COVID-related mortgage forbearance programs set to end in September, homeowners who are unable to make catch up mortgage payments may be forced to sell this fall. The resulting increase in available inventory would put buyers and sellers on more even footing. This could help to rebalance the market.
157 single family homes were sold in zip codes 98403, 98406 and 98407 in the second quarter of this year - 25% more than we saw last spring when the housing market was still responding to the initial COVID shut down. Homes have been selling VERY quickly – in about a week on average.
Current Market Conditions
-
- According to the Mortgage Bankers Association, mortgage applications dropped off pretty significantly at the end of June, suggesting that some potential home buyers may have abandoned their plans to purchase because they’ve simply been priced out of the market.
- In March, new housing starts reached their highest level since 2006, and single family home permits are on the rise. This increase in new home construction won’t solve our inventory problem, but it will definitely help.
- According to the S&P CoreLogic Case-Shiller Home Price Index, the Seattle metro market ranks #3 in the nation for year over year price gains (behind Phoenix and San Diego).
- Housing prices in the Seattle area have risen 63% over the course of the past 5 years, compared to a 38% increase nationwide.
- The most recent Home Price Expectations Survey of more than a hundred economists and real estate experts forecasts continued home price appreciation for the next five years with predicted annual gains ranging from 3-8%.
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
