Nestled in the scenic beauty of the Pacific Northwest, Tacoma, WA has captured the hearts of both residents and potential homebuyers alike. With its stunning natural landscapes, vibrant cultural scene, and booming economy, it's no wonder that the Tacoma housing market has been a topic of interest for many. In this blog post, we'll delve into the current market trends and forecast for Tacoma's real estate. Let's explore the fascinating world of Tacoma's housing market.
Tacoma Housing Market Update: Steady Prices and High Demand
The following housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.
The Current Market Picture
In July 2023, the median listing home price in Tacoma, WA stood at $500,000, marking a 1% year-over-year increase. The median listing price per square foot was $312, showcasing the value that Tacoma's real estate offers. Additionally, the median sold price for homes reached $462,800, illustrating the demand and competitive nature of the market. This balance between listing and sold prices indicates a stable yet dynamic market landscape.
Sale-to-List Price Ratio: A Balanced Equation
One intriguing aspect of Tacoma's real estate market is the sale-to-list price ratio. In July 2023, homes in Tacoma were selling for approximately the asking price on average, with a sale-to-list price ratio of 100%. This reveals a balanced equation between sellers' expectations and buyers' willingness to meet them, fostering a harmonious environment for real estate transactions.
Seller's Market Dynamics
Tacoma, WA is currently experiencing a seller's market, where the demand for homes surpasses the available inventory. This trend, observed in July 2023, implies that more potential buyers are searching for properties compared to the number of homes listed. This competitive landscape can lead to quicker sales and potentially multiple offers on properties. It's a scenario that motivates sellers but requires buyers to act swiftly.
Median Days on Market: A Swift Turnaround
The median days on market metric offers valuable insight into the pace of the real estate market. In Tacoma, WA, homes were selling within an average of 26 days in July 2023. This indicates a relatively swift turnaround, reflecting the strong demand for housing in the area. Notably, the median days on the market have decreased compared to the previous month, suggesting an increasingly efficient market, and also slightly down from the previous year, highlighting the sustained interest in Tacoma's real estate.
Forecast for the Future
As we look ahead, Tacoma's real estate market appears to be in a healthy and dynamic state. The incremental year-over-year increase in median listing home prices showcases steady growth, while the equilibrium in sale-to-list price ratios and the brisk pace of sales indicate a balanced and competitive market. The seller's market dynamics, while advantageous for sellers, might pose challenges for buyers in terms of choice and timing. Therefore, potential homebuyers should be prepared to act swiftly and decisively to secure their desired properties.
Tacoma Apartment Rent Prices
As of August 2023, the average rent for a 1-bedroom apartment in Tacoma, WA is currently $1,413. This is a 5% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in Tacoma decreased by -11% to $1,195. The average rent for a 1-bedroom apartment increased by 3% to $1,413, and the average rent for a 2-bedroom apartment increased by 3% to $1,795.
- The average rent for a 2-bedroom apartment in Tacoma, WA is currently $1,795. This is a 1% increase compared to the previous year.
- The average rent for a 3-bedroom apartment in Tacoma, WA is currently $2,200. This is an 8% decrease compared to the previous year.
- The average rent for a 4-bedroom apartment in Tacoma, WA is currently $2,875. This is a 9% decrease compared to the previous year.
Tacoma Housing Market Forecast 2023-2024
An Analysis of Current Trends and Future Outlook: The housing market in Tacoma, WA has experienced fluctuations in recent times, with changes in average home values and market dynamics.
Zillow: The average Tacoma home value is $474,616, down 4.5% over the past year and goes to pending in around 7 days.
Market Overview
Typical Home Values: $474,616
1-year Value Change: -4.5%
(Data through July 31, 2023)
Median Days to Pending: 7 (July 31, 2023)
Forecast and Conclusion
Based on the current data, the Tacoma housing market appears to be experiencing a stable and competitive environment. If you're looking for a reliable housing market forecast for Tacoma, I recommend reaching out to local real estate agencies. They can provide you with a more informed perspective on the possible future trends of the Tacoma housing market.
Overall, the Tacoma housing market forecast suggests a competitive and dynamic landscape. Whether you're considering buying or selling a property in Tacoma, understanding the latest trends and forecasts can help you navigate the market and make informed decisions to achieve your real estate objectives.
Tacoma Real Estate Investment Overview
Tacoma, Washington, has emerged as a favorable destination for real estate investors due to its strong housing demand and sustained growth. As the state's third-largest city, Tacoma has a population of around 220,000, and it's growing at a rate of 0.78% annually. Furthermore, it is a satellite city located at the southern end of the Seattle metropolitan area, which is home to approximately a million people. The Tacoma housing market has remained resilient in recent years, and real estate investors have found favorable returns in the short term.
Top Reasons to Invest in Tacoma Real Estate:
- Strong Demand: The demand for housing in Tacoma has consistently remained strong due to its growing population and proximity to the Seattle metropolitan area. Additionally, Tacoma is home to several prominent employers, including Joint Base Lewis-McChord, MultiCare Health System, and the Port of Tacoma. This demand is expected to continue to increase, making Tacoma an excellent destination for real estate investors.
- Affordable Prices: Despite being a part of the Seattle metropolitan area, Tacoma offers more affordable housing options compared to Seattle. The median home value in Tacoma is around $474K, while the median home value in Seattle is > $800K. This affordability factor makes it an attractive destination for first-time homebuyers and real estate investors alike.
- Positive Growth Outlook: According to the Zillow Home Value Index (ZHVI), Tacoma's average home value has steadily grown over the past year, indicating a positive growth outlook. Additionally, the Tacoma housing market is expected to continue growing in the coming years, making it a favorable destination for real estate investors.
- Low Vacancy Rates: The vacancy rates in Tacoma are relatively low, indicating a stable and active housing market. This is good news for real estate investors looking to rent out their properties as they can expect a steady stream of rental income.
- Diverse Housing Options: Tacoma offers a diverse range of housing options, from single-family homes to townhouses and condos. This diversity makes it easier for real estate investors to find a property that suits their investment goals.
- Economic Growth: The economy in Tacoma has been growing steadily, with several new businesses and industries moving to the area. This economic growth is expected to continue in the coming years, which will likely further boost the demand for housing in Tacoma.
In conclusion, the Tacoma housing market offers a favorable destination for real estate investors due to its strong demand, affordability, positive growth outlook, low vacancy rates, diverse housing options, and economic growth. With these factors in mind, it's easy to see why Tacoma is becoming a popular destination for those looking to invest in real estate.
How Should Buyers Invest in This Market?
There is no one-size-fits-all answer to how buyers should invest in the Tacoma real estate market, as each buyer's situation is unique. However, there are some general tips that can help buyers make informed investment decisions:
- Work with a local real estate agent: Working with a local agent who is familiar with the Tacoma market can be invaluable. They can provide insight into market trends, help buyers identify investment opportunities, and negotiate on behalf of their clients.
- Conduct thorough research: Buyers should do their due diligence and research the Tacoma market before investing. This can include analyzing historical sales data, examining current market trends, and identifying areas with potential for growth.
- Consider long-term investment goals: Real estate investing can be a long-term strategy, so buyers should consider their long-term investment goals. For example, if a buyer is interested in rental properties, they should consider factors such as rental rates, vacancy rates, and potential for future rental demand.
- Have a solid financial plan: Investing in real estate can be expensive, so buyers should have a solid financial plan in place. This can include having a pre-approval for a mortgage, a solid down payment, and a plan for ongoing maintenance and repairs.
- Diversify investments: Investing in real estate can be a great strategy, but it's important to diversify investments to minimize risk. Buyers should consider diversifying their investments across different types of real estate, geographic locations, and asset classes.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Tacoma, Washington is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The other best place in Washington to invest in real estate is Spokane. Spokane is a relatively cheap real estate market on the West Coast. It is already seeing increased demand and property valuations, while it remains a safe place to invest in real estate. Skip Seattle and Silicon Valley and invest in the future growth of Spokane. One reason why Spokane long lagged behind Seattle was its higher unemployment rate. Seattle has a roughly 3% unemployment rate, significantly lower than the 5% unemployment rate seen in Spokane. Spokane’s economy, though, is seeing a surge in higher-wage jobs.
Out of the tens of thousands of new jobs created since 2010, the majority of them pay more than the average county wage – which is in line with the national average. The promise of better pay will lure many people to Spokane to live, fueling demand for the Spokane real estate market. Another hot place in Washington to invest in real estate is none other than Seattle. Seattle is a pricey but sizzling market-making news all around the year. Seattle has long been second to Silicon Valley, but its strong economy, diverse population, and better regulatory climate are bringing refugees from California and migrants from around the country and world to live here.
Regardless of the area’s weather, the Seattle housing market’s outlook can only be described as sunny. Seattle has repeatedly hit lists as being among the top cities for real estate sellers to get the highest return on their investments. Property values have gone up consistently for years. Rental rates are high and continue to rise, guaranteeing ROI for those who buy and hold properties. This means you will certainly be able to profit from the large rental market in Seattle whether you buy and hold or buy and flip.
Let us know which real estate markets you consider best for real estate investing! If you need expert investment advice, you may fill-up the form given here. One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References
- https://www.zillow.com/tacoma-wa/home-values
- https://www.nwmls.com/
- https://www.zumper.com/rent-research/tacoma-wa
- https://www.redfin.com/city/17887/WA/Tacoma/housing-market
- https://www.neighborhoodscout.com/wa/tacoma/real-estate
- https://www.realtor.com/realestateandhomes-search/Tacoma_WA/overview
- https://www.fhfa.gov/DataTools/Tools/Pages/FHFA-HPI-Top-100-Metro-Area-Rankings.aspx?
