The housing market has cooled significantly in the past six months in response to increased mortgage interest rates.
Third Quarter Market Update
for University Place and Fircrest
The median home sale price in University Place and Fircrest is 9% higher now than it was a year ago, but price gains are decelerating and sales activity is down. The number of homes sold in zip codes 98466 and 98467 in the 3rd quarter of this year was 32% lower than the number sold in the 3rd quarter of 2021. Though sales activity is likely to remain sluggish for the foreseeable future, low inventory levels will almost certainly help to sustain home values.
We predict that year over year price gains in University Place and Fircrest will continue tapering off towards a historically normal increase of 4-5% per year.
115 single family homes were sold in zip codes 98466 and 98467 in the third quarter of 2022 – a whopping 32% decrease in sales activity compared to the third quarter of 2021.
It feels like houses have been sitting on the market quite a bit longer than they were earlier this year, but listings have actually been moving from active to pending fairly quickly – within three weeks on average.
Many homeowners are reluctant to put their houses on the market because buying a replacement property would typically require trading in their currently low interest rate for a much higher one. As a result, inventory levels remain low in University Place and Fircrest.
Current Market Conditions
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- According to a recent Redfin analysis ranking the 100 most populous U.S. metro areas based on how quickly their housing markets are cooling, Tacoma was ranked #10. Neighboring Seattle was ranked #1. This news doesn’t come as a complete surprise, given how hot our markets were before interest rates started to rise.
- Mortgage interest rates are hovering around 7%, up one percentage point in September alone. Uncertainty and volatility in global financial markets are contributing to day to day rate fluctuations.
- Though single family housing starts jumped 3.4% in August, builder sentiment is at its lowest level since 2014, according to data from the National Association of Home Builders. Rising interest rates and supply chain disruptions are among their top concerns.
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
