University Place and Fircrest home values started rising again earlier this year, but we still haven’t regained the value that we lost in 2022.
Second Quarter Market Update
for University Place and Fircrest
The median home price in University Place and Fircrest in the second quarter of this year was $625,000 - 12% lower than it was last spring. Home prices are rising again on a month to month basis, but we’ll probably continue to see year over year “losses” until 2024. The important thing to remember is that the housing market is in recovery mode.
Median home prices are down in zip codes 98466 and 98467 when compared to the second quarter of 2022, but they’re still a bit higher than they were in 2021.
Only 87 single family homes were sold in zip codes 98466 and 98467 in the second quarter of 2023 – a 34% decrease in sales activity when compared to the second quarter of 2022. Sales activity isn’t as slow now as it was in late 2022, but we definitely did NOT have a traditional spring market this year.
Homes in University Place and Fircrest haven’t been selling as fast as they once did, but they’re still selling pretty quickly – moving from active to pending within 2-3 weeks on average.
Housing inventory levels remain extremely low in UP and Fircrest. A lot of home owners are reluctant to let go of their super low interest rates in order to make a move, which means they’re not putting their houses on the market. Inventory levels are unlikely to improve until and unless interest rates drop.
Current Market Conditions
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- The Fed has paused their interest rate hikes temporarily, but additional rate increases are expected this year. That means that mortgage interest rates are almost certainly going to get worse before they get better. Relief isn’t expected until 2024.
- The U.S. mortgage delinquency rate remains extremely low at 3.1%, making a meaningful increase in foreclosures unlikely.
- According to the National Association of Realtors, pending home sales have been down this spring because of persistently low inventory levels.
- Bankrate ranked the Seattle-Tacoma-Bellevue metro area at #2 on their list of the best places to start a career, which means we’re likely to continue seeing transplants to the area
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
