The UP/Fircrest housing market experienced a seasonal slowdown in the fourth quarter of 2021, with sales activity dropping off significantly at the end of the year.
Fourth Quarter Market Update
for University Place
The median home price in University Place and Fircrest is 25% 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.
On January 1st of this year, there were only 7 single family homes available for sale in zip codes 98466 and 98467 combined. Seven houses total. That’s less than a week’s worth of inventory. A balanced housing market requires 4-6 months of inventory. 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.
Only 129 single family homes were sold in University Place and Fircrest in the fourth quarter of 2021 – a dramatic 22% decrease in sales activity when compared to the fourth quarter of 2020. This drop in sales activity was almost certainly due to low inventory levels, not a lack of buyer interest.
Homes continue sell quickly in University Place and Fircrest – moving from active to pending in just 2-3 weeks on average.
Current Market Conditions
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- According to Lawrence Yun, chief economist for the National Association of Realtors, the frenzied housing market of 2021 is likely to level out in 2022, due in part to anticipated interest rate hikes by the Federal Reserve.
- A group of 20 leading economists predicts a relatively modest 5.7% increase in median home prices in 2022, a noticeable change from the double digit increases we’ve seen for the past few years.
- Real estate investors purchased nearly 20% of all homes sold in 2021, cutting into inventory available for first time home buyers. If home price appreciation tapers off in 2022 as expected, investor interest will likely taper off as well. That’s good news for traditional home buyers.
- Jessica Lautz, VP of behavioral insights and demographics for the National Association of Realtors, reports that many baby boomers are choosing to age in place, holding on to their homes longer and contributing to the ongoing shortage of housing inventory.
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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
