Tacoma real estate has been experiencing notable changes, reflecting broader trends in the Pacific Northwest. The market in Tacoma, Washington, is characterized by a dynamic interplay of supply and demand, influenced by various economic and demographic factors. As of late, Tacoma real estate has garnered attention for its resilience and growth, presenting a range of opportunities for buyers, sellers, and investors.
The importance of real estate in Tacoma cannot be overstated. It serves as a barometer for the city's overall economic health, impacting everything from local employment to urban development. In this comprehensive analysis, we delve into the most current trends and data to provide an insightful look into the Tacoma, Washington real estate market.
Current Market Dynamics
The Tacoma real estate market, nestled in the scenic Pacific Northwest, continues to thrive, marked by strong demand and limited supply. As of January 2024, Tacoma remains a seller's market, characterized by more people looking to buy than available homes. This high demand has pushed the median listing home price to $500K, with a notable 7.1% year-over-year increase, reaching this figure in December 2023.
The median sold home price stands at $465.2K, and homes typically sell for about their asking price, reflecting a 100% sale-to-list price ratio. The average home value in Tacoma is $458,396, showing a modest increase of 1.6% over the past year, indicating a stable and growing market. The brisk pace of transactions, with homes going pending in approximately 16 days, underscores the robustness of the Tacoma housing market. Currently, there are 452 homes for sale with 145 new listings, contributing to a dynamic real estate environment.
Tacoma's housing market is not showing signs of a crash, despite rising interest rates and nationwide economic uncertainties. The low supply coupled with high demand suggests continued market activity. Interestingly, while some regions have seen price declines due to rising rates, Tacoma's market has been more resilient.
The North End remains the most expensive neighborhood with a median listing price of $820K, and South Tacoma offers more affordable options with a median price of $385K. Homeownership stands at 54.1%, with single-family homes being the most common property type, comprising 62.7% of the market. These figures reflect a balanced market, with a slight advantage for sellers, indicating that homes often sell at or above their listing price. This competitive nature of the market suggests that for buyers, swift action is key to securing a good deal.
Home Value Trends
The Tacoma, WA housing market has demonstrated steady growth in home values, making it an attractive area for both residents and investors. As of January 2024, the average home value in Tacoma is approximately $458,396, which is a modest increase of 1.6% over the past year. This growth indicates a trend of appreciation in property values, contrary to the drop in prices that some other markets have experienced.
The market's resilience is further underscored by the relatively short time homes spend on the market, with properties typically going pending in about 16 days. The median listing home price in Tacoma is around $500K, marking a significant year-over-year increase of 7.1%. This upward trend in home values reflects the city's robust and stable real estate environment, fueled by strong demand and limited supply.
In addition to these trends, the median sold home price in Tacoma was recently reported at $480.2K. The real estate market in Tacoma is dynamic, with a range of properties listed for sale. The median estimated value of a home in Tacoma is around $475,268.58, demonstrating the market's overall affordability compared to other major cities in the region. These trends in home values and the market dynamics in Tacoma reflect the city's growing appeal as a desirable place to live and invest. The market is expected to remain strong, driven by factors such as Tacoma's scenic beauty, vibrant cultural scene, and booming economy.
Inventory and Listings
The current inventory and listings in Tacoma, WA, showcase a diverse range of properties catering to various preferences and budgets. Recent listings include homes like a North End Rambler with 3 bedrooms, listed at $465,000, featuring an updated kitchen with modern amenities and a comfortable living space of 989 sq ft. Another property, a triplex priced at $825,000, includes two 2-bedroom units and a 3-bedroom unit, each with its own washer and dryer, reflecting the variety available in the Tacoma real estate market.
Additional listings include a 4-bedroom home for $435,000 with original hardwood floors and a spacious backyard, and a bi-level 4-bedroom house at $380,000, highlighting the range of family-friendly options in the city. These listings demonstrate the dynamic nature of Tacoma's real estate market, offering choices from updated historic homes to multi-unit properties, catering to both residential buyers and investment-oriented purchasers.
Moreover, other recent listings in Tacoma include properties like a single-family home at 719 S Sprague Ave, listed for $350,000, featuring 4 bedrooms and 2 baths over 1,474 sq ft of living space. Another newly listed property at 2050 E Fairbanks St is priced at $300,000, offering 5 bedrooms and 2 baths across 1,782 sq ft.
A more compact option is available at 2012 E Sherman St, a 2-bedroom home listed for $275,000 with a total bath area and 976 sq ft of space. These listings reflect the affordability and diversity of the Tacoma housing market, appealing to a wide spectrum of buyers, from those seeking family homes to individuals looking for their first purchase in a vibrant and growing city.
Market Dynamics
The Tacoma, WA housing market is currently characterized as a seller's market, with a higher demand for homes than the available inventory. This dynamic has led to a situation where homes in Tacoma are generally selling for around their asking price, reflected in a 100% sale-to-list price ratio. As of the latest data, the median listing home price in Tacoma is $500K, with a median listing price per square foot of $307.
The median sold home price, however, is slightly lower at $465.2K. The market has seen a significant 7.1% year-over-year increase in median listing home prices. Despite concerns in other areas, Tacoma’s market has shown resilience, with an average home value increase of 1.6% over the past year, suggesting a trend of property value appreciation.
The homes in Tacoma typically go pending in about 16 days, indicating a brisk pace of transactions and a competitive market environment. As of December 31, 2023, there were 452 homes for sale and 145 new listings, contributing to the vibrancy of the real estate market in Tacoma.
In terms of recent sales, homes in Tacoma have shown varied sale-to-list price ratios, with some properties selling over, at, or under their list prices. For instance, a property listed at $500K sold for the same amount, indicating no change over the list price. Another property listed at $475K sold for 5% over its list price, showing the competitive nature of the market.
On the other hand, a property listed at $250K sold for $300K, 6% under its list price, reflecting the negotiation dynamics in the market. These examples illustrate the diverse outcomes in the Tacoma housing market, where the final sale price can vary based on factors such as property features, location, and market demand. The market dynamics in Tacoma are influenced by a mix of buyer demand, inventory levels, and economic factors, creating a complex and ever-evolving real estate landscape.
Tacoma's Neighborhood Dynamics
Tacoma, WA, is a city with diverse neighborhoods, each offering unique characteristics and housing dynamics. For instance, Old Town, located in the North End area, is a historic district with a charming mix of shops, restaurants, cafes, and parks, such as Old Town Park with beautiful waterfront views. Housing in Old Town features a mix of architectural styles, including historic Victorian-style homes and craftsman bungalows, with a median sale price around $940,000.
South End, located west of the Eastside neighborhood, is known for its beautiful parks like Wapato Park and Charlotte’s Blueberry Park. It offers a range of housing types from single-family homes to townhouses and apartments, with a median sale price of $439,975 and average rents for apartments ranging from $1,502 to $1,550. Another notable area is South Tacoma, known for its proximity to attractions like the Tacoma Dome and Cheney Stadium, offering a variety of housing types and styles, including Craftsman and Victorian homes, with a median sale price of $395,000 and average apartment rents at $1,599.
Additionally, the West End neighborhood in Tacoma offers a convenient location close to downtown, with attractions like the Tacoma Narrows Bridge and Point Ruston. The area features several parks, including the famous Point Defiance Park. Housing in West End varies from charming Craftsman homes to modern townhouses, with a median sale price of $589,950 and average rents for apartments at $1,637.
The Northeast Tacoma area also shows dynamic housing trends, with homes typically selling around their list prices and a range of property types, from single-family homes to more expansive properties. For instance, a home on 50th Ave NE recently sold for $440,000, exactly at its list price, while another on Chinook Dr NE sold for $650,000, also at its listing price. These sales reflect the competitive nature of the Tacoma housing market and the diversity of housing options available across different neighborhoods.
Impact of Interest Rates
The housing market in Tacoma, WA, has shown resilience in the face of changing interest rates. As of January 2024, the median listing home price in Tacoma stands at $500K, with a notable increase of 7.1% year-over-year. This price appreciation occurred despite fluctuations in interest rates, suggesting a strong demand for housing in the area. The market dynamics in Tacoma, including a 100% sale-to-list price ratio, indicate that homes generally sell for around their asking price, reflecting a competitive market environment.
Additionally, the average home value in Tacoma is approximately $458,396, showing a modest increase of 1.6% over the past year. This growth trend, coupled with the brisk transaction pace where homes go pending in about 16 days, underscores a robust real estate environment in Tacoma. The city's housing market is influenced by various factors, including interest rates, but it continues to demonstrate growth and stability, making it an attractive market for buyers and investors.
The broader impact of interest rates on housing markets, including Tacoma, can be significant. The Joint Center for Housing Studies at Harvard University noted that the increase in interest rates between late December 2021 and mid-April 2022 had an equivalent impact on monthly mortgage payments as a 27% jump in home prices. This demonstrates the sensitivity of housing affordability to interest rate fluctuations.
However, in Tacoma's case, the market has not only sustained but grown, indicating strong underlying demand and a robust local economy. The steady rise in home values, despite interest rate changes, highlights the city's resilience and the continued appeal of its housing market. For prospective buyers, the current market conditions and interest rates present a complex landscape that requires careful consideration and potentially consultation with real estate professionals.
Conclusion
In conclusion, the current trends in Tacoma's real estate market paint a picture of a robust and growing sector, resilient in the face of economic fluctuations and interest rate changes. Despite challenges such as increased interest rates and a national housing affordability crisis, Tacoma’s market has demonstrated significant resilience and growth.
The city's real estate market is currently experiencing a seller's market environment, with high demand and competitive pricing, evidenced by homes selling approximately at their asking prices. This robust market is further evidenced by the steady rise in home values, with an average increase of 1.6% over the past year.
Tacoma's appeal as a desirable location for both living and investing continues to drive the market. The city’s natural beauty, vibrant culture, and thriving economy are attracting a diverse range of residents and investors. This influx has led to a growing demand to find Tacoma moving experts, as more people are looking to relocate to this dynamic city. The increase in population and subsequent housing demand has contributed to the growth of the real estate market.
The city's various neighborhoods, each with its unique characteristics and price points, offer a range of options for buyers and renters alike, further fueling the market’s expansion. With these trends in place, Tacoma's real estate market is at a good point, offering opportunities for buyers, sellers, and investors, and it is poised to continue its upward trajectory in the foreseeable future.
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