The median home price in University Place and Fircrest is 10% higher today than it was just 12 months ago, due in large part to strong buyer demand, historically low interest rates and unbelievably low housing inventory levels.
Fourth Quarter Market Update
for University Place
On January 1st of this year, there were only 10 single family homes available for sale in zip codes 98466 and 98467 combined. Ten houses total. That’s less than a week’s worth of inventory. A balanced housing market requires 4-6 months of inventory, which means the current market is incredibly favorable to sellers. More new listings are expected to hit the market as we head into the first few months of the year, but strong buyer demand is likely to absorb that new inventory quickly, continuing to push home prices higher.
167 single family homes were sold in zip codes 98466 and 98467 in the fourth quarter of 2020 – a dramatic 22% increase in sales activity when compared to the fourth quarter of 2019. How can the number of sales be up when inventory levels are at historic lows? Good question. Because houses are selling so quickly, they’re not on the market long enough to register as “active” inventory when the numbers are tallied at the end of the month.
Current Market Conditions
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- Data from Redfin suggests Tacoma is the hottest housing market in the nation with half of all homes pending sale in just six days, 58% of homes selling above list price in November and a current average home sale price that’s 17% higher than it was a year ago.
- According to Freddie Mac, Fannie Mae and the National Association of Realtors, interest rates are likely to remain at or near 3% in 2021, continuing to fuel buyer demand.
- With the COVID-19 vaccine roll out underway and the end of the pandemic in sight, homeowners are expected to feel more comfortable putting their houses on the market, adding more inventory to meet increased demand.
- Zillow predicts a 22% increase in home sales activity in 2021, which would be the largest year over year increase since 1983.
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
