How is The Tacoma Housing Market 2019?
If you are looking at buying a house in Tacoma, Washinton as a potential investment opportunity, you must read till the end. Tacoma, WA has long been overshadowed by Seattle. If it was known by those outside the area, it was as a distant suburb of Seattle. Yet that is one of reasons to consider investing in the Tacoma real estate. Let’s learn more about the Tacoma real estate market 2019 before we share the ten reasons to invest in this city.
The second largest city in a state is often a better choice for investors than the largest city, since demand is strong but not so great that investors worry about being priced out of the market or being caught up in a bubble. Tacoma, Washington is actually the third largest city in Washington state. Based on the last twelve months, short-term real estate investors have found good returns in Tacoma.
Tacoma is home to more than two hundred thousand people. Tacoma is also a satellite city at the southern end of the Seattle housing area, growing as Seattle’s metro area expands around Puget Sound. It is also the regional hub for the southern Puget Sound area, home to roughly a million people. Let’s take a look at the Tacoma real estate market trends and the prospects of investing in Tacoma in 2019.
Tacoma Real Estate Market Forecasts 2019 & 2020
The median home value in Tacoma is $312,200 on Zillow. Tacoma home values have gone up 10.0% over the past year and Zillow's Tacoma real estate market prediction is that the prices will rise 5.3% in 2020. The median list price per square foot in Tacoma is $233, which is lower than the Seattle-Tacoma-Bellevue Metro average of $293.
The median price of homes currently listed in Tacoma is $300,000 while the median price of homes that sold is $300,200. The median rent price in Tacoma is $1,750, which is lower than the Seattle-Tacoma-Bellevue Metro median of $2,342.
According to LittleBigHomes.com, the Tacoma real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Tacoma real estate market trend prediction is 92%. Accordingly, they estimate that the probability for rising home prices in Tacoma, WA is 92% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Tacoma Housing Market Forecast 2019 – 2021
The Tacoma housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Tacoma housing market trend prediction is 87%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Tacoma, Washington is 87% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Tacoma, Washington Real Estate Forecast.
Tacoma Real Estate Market Trends
Tacoma real estate market trends indicate an increase of $25,281 (9%) in median home sales and a -3% drop in median rent per month over the past year. The average price per square foot for this same period rose to $247, up from $225. Trulia has 1,465 resale and new homes for sale in Tacoma, Washington, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Tacoma for Mar 1 to May 29 was $310,000 based on 1,013 home sales. Average price per square foot for Tacoma was $247, an increase of 10% compared to the same period last year. The median rent per month for apartments in Tacoma for May 4 to Jun 4 was $1,750.
Data by Redfin shows that the Tacoma housing market is most competitive. Homes in Tacoma receive 2 offers on average and sell in around 7 days. The average sale price of a home in Tacoma was $326,000 last month, up 11.0% since last year. The average sale price per square foot in Tacoma is $217, up 14.2% since last year. Homes typically receive 2 offers. Homes in the Tacoma housing market sell for about 1% above list price and go pending in around 7 days. Hot homes in Tacoma, Washington can sell for about 4% above list price and go pending in around 4 days.
Tacoma Housing Market Statistics
|Median Sales Price||$310,000 (On Trulia)|
|Price Per Square Ft||$247|
|Median Rent Per Month||$1,750|
|Median Household Income||$52,372|
|Transportation||92% people commute by car, public transport available|
There are 922 homes for sale in Tacoma, ranging from $27.5K to $7M on Realtor.com. 139 of which were newly listed within the last week. Additionally, there are 266 Tacoma rental properties, with a range of $575 to $9.4K per month. In April 2019 the housing market in Tacoma, WA was a buyer's market, which means there were roughly more active homes for sale than there were buyers.
In April 2019, the median list price of homes in Tacoma, WA was $339,000, trending up 6% year-over-year. The median listing price per square foot was $207. The median sale price was $350,000. Homes in Tacoma sell faster than average compared to other cities in Pierce County. It takes an average of 37 days on market for a home to sell in Tacoma.
The median list price in Tacoma, WA is $359,996 on Movoto.com. The median list price in Tacoma went down 5% from May to June. Tacoma's home resale inventories is 450, which increased 12 percent since May 2019. The median list price per square foot in Tacoma is $212. May 2019 was $213. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in June.
Tacoma, WA Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the data from the real estate company called Neigborhoodscout.com, the median house price in Tacoma, WA is $298,999, which indicates that home prices in Tacoma are well above the national average for all cities and towns. Single family detached homes are the single most common housing type in Tacoma, accounting for 62.24% of the city's housing units.
Other types of housing that are prevalent in Tacoma include large apartment complexes or high rise apartments ( 26.50%), duplexes, homes converted to apartments or other small apartment buildings ( 7.66%), and a few row houses and other attached homes ( 3.20%).
The most prevalent building size and type in Tacoma are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 50.37% owning and 49.63% renting.
Currently, there are 320 single family homes for sale in Tacoma, WA on Zillow. Additionally, there are 65 single family homes for rent in Tacoma, WA. Under potential listings, there are about 26 Foreclosed and 124 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Tacoma, WA Foreclosures And Bank Owned Homes 2019
Foreclosures will be a factor impacting home values in the next several years. In Tacoma 1.9 homes are foreclosed (per 10,000), according to Zillow.com. This is greater than the Seattle-Tacoma-Bellevue Metro value of 0.8 and also greater than the national value of 1.2. The percent of delinquent mortgages in Tacoma is 1.1%, which is lower than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Tacoma homeowners underwater on their mortgage is 4.7%, which is higher than Seattle-Tacoma-Bellevue Metro at 4.2%.
|Foreclosures in Tacoma||226|
|Homes for Sale||210 (RealtyTrac)|
|Median List Price||$329,975 (4% ⇑ vs Apr 2018)|
There are currently 226 properties in Tacoma, WA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 210. In May 2019, the number of properties that received a foreclosure filing in Tacoma, WA was 37% higher than the previous month and 21% lower than the same time last year.
Home sales for April 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Tacoma, WA was $0. The median sales price of a foreclosure home in Tacoma, WA was $0, or 0% higher than non-distressed home sales.
Tacoma Home Prices And Real Estate Appreciation 2019
Tacoma's real estate appreciation rate in the latest quarter of 2019 has been one of the lowest in the U.S. The cumulative Tacoma real estate appreciation rate over the ten years has been 27.91%, which ranks in the top 30% nationwide.
This equates to an annual average Tacoma real estate appreciation rate of 2.49%. Tacoma real estate appreciation rates are so strong that despite a nationwide downturn in the housing market, Tacoma real estate has continued to appreciate in value faster than most communities.
Looking at just the latest twelve months, Tacoma real estate appreciation rates continue to be some of the highest in the nation, at 10.77%, which is higher than appreciation rates in 95.12% of the cities and towns in the nation. Tacoma appreciation rates in the latest quarter were at -0.14%, which equates to an annual appreciation rate of -0.57%.
The above statistics on real estate appreciation in Tacoma were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to Washington, their data shows that Tacoma's latest annual real estate appreciation rate is higher than 50% of the other cities and towns in Washington.
Where Should You Buy Real Estate In Tacoma, WA?
There are 201 schools in Tacoma, WA. There are 83 elementary schools, 36 middle schools, 43 high schools and 39 private & charter schools. There are 21 neighborhoods in Tacoma. Some of the best neighborhoods in or around Tacoma, Washington are South End, North End and Eastside.
Ruston has a median listing price of $499.9K, making it the most expensive neighborhood. Lakeview is the most affordable neighborhood, with a median listing price of $259.9K. Here are the 10 best neighborhoods in Tacoma to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
E 11Th St / Alexander Ave
U of Washington-Tacoma Campus / Tacoma Ave S
Hillhurst / Mock City
Eastward / Ketron
Lincoln St / Adams St
N 5th St / Crary Ave
U of Puget Sound / N Alder St
S 12Th St / S Union Ave
S 25th St / S Wilkeson St
Should You Invest In Tacoma Real Estate In 2019?
Is it worth buying a house in Tacoma, WA? Investing in real estate is touted as a great way to become wealthy. Is buying an apartment in Tacoma a good investment? Many real estate investors have asked themselves if buying a property in Tacoma is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Tacoma housing market 2019 forecast for answers on why to put resources into this sizzling market. Although, this article alone is not a comprehensive source to make a final investment decision for Tacoma, but we have collected ten evidence based positive things for those who are keen to invest in the Tacoma real estate in 2019.
Investing in Tacoma real estate will fetch you good returns in the long term as the home prices in Tacoma have been trending up 6% year-over-year. Let’s take a look at the number of positive things going on in the Tacoma real estate market which can help investors who are keen to buy real estate in this city.
1. The Benefits of Being a Suburb of Seattle
One of the reasons to consider buying Tacoma real estate investment properties is that it is a satellite city of Seattle. You benefit from the growth of Seattle by buying Tacoma real estate investment properties before they start to skyrocket in value.
By moving to the suburbs, you get away from the 800,000-dollar median home price in Seattle and more than 600,000-dollar price tag that comes with the average home in King County. Property values across the Puget Sound area are soaring as businesses and people relocate here from the insanely expensive San Francisco real estate market.
2. The Benefits of Not Being in Seattle
There are many reasons to consider snapping up homes in the Tacoma real estate market, and more than one include being in commuting distance of Seattle’s job market without being subject to Seattle’s often insane politics.
Tacoma doesn’t have the same homeless issue Seattle does. Tacoma is a sizable port city attracting businesses afraid of Seattle’s threatened head tax. Seattle tried to pass an income tax, but that won’t hit people living and working in Tacoma.
3. The Cooling Regional Housing Market
Seattle’s real estate market was unusual for drop in home price appreciation. The housing marketing didn’t depreciate. Instead, home values only rose 5 percent in 2018 instead of the 12 percent gain seen in 2017.
Note that the Tacoma housing market wasn’t as overheated as Seattle’s to begin with. Buy in the Tacoma real estate market now before appreciation hits ten and fifteen percent annual growth again.
4. The Lower Price Tag
The median home value in the Tacoma housing market was just under three hundred thousand dollars in 2018. Yet the lower cost of Tacoma housing is causing many to move from Seattle to Tacoma, driving up home prices in Tacoma.
After all, 300K is half the price of a 600K starter home in Seattle. Property values in the Tacoma housing market went up 13 percent in 2018 and are projected to rise 10 percent in 2019. Investors will appreciate being able to snap up two properties in the Tacoma housing market for the price of one in Seattle.
5. The More Stable Housing Market
The Tacoma area is treated as separate from Seattle, because of the stark differences between their economies. For example, the home of Microsoft and Boeing has an unemployment rate near 3 percent, whereas the unemployment rate for those living in the Tacoma housing market is close to 6 percent.
The Tacoma area is picking up more jobs as businesses relocate from Seattle and San Francisco. That is contributing to the two percent job growth year over year in Tacoma. This will increase prices in the Tacoma real estate market but won’t lead to a housing bubble that could burst.
6. The Long Term Impact of Geography
Tacoma sits at the southern end of Puget Sound and straddles Commencement Bay. Being a large port town, it is already flanked by smaller cities and backed by mountains. This prevents the city from simply expanding outward, forcing developers to pay for more expensive redevelopment of existing properties.
This will keep prices in the Tacoma real estate market high as long as the job market remains strong. It certainly limits the ability to quickly bring new supply to a tight housing market that has only 1.5 months of inventory on hand.
7. The Large Military Population
Tacoma is ten miles from the Lewis-McChord joint base. This joint Army-Air Force base is one of the biggest employers in the area, employing more than sixty thousand people. This dumps many renters into the Tacoma housing market who won’t be buying when interest rates drop or their personal financial situation improves.
8. The Sizable Student Market
The Tacoma housing market is ideal for those who want to rent to college students. By being home to so many universities, it allows investors to diversify their holdings instead of being beholden to the reputation and enrollment of any particular school.
Tacoma is home to the University of Puget Sound, the University of Washington Tacoma Campus, Faith Evangelical College, Pacific Lutheran University and St. Martin’s University to name a few.
A side benefit of owning Tacoma real estate investment properties is that you will be able to rent it out to the half of the population that rents if fewer students are interested in renting it.
9. The Relative Landlord Friendliness
Washington State is not the most landlord friendly, but it beats both California and Oregon in this regard. More importantly, the Tacoma real estate market is more friendly to landlords than Seattle is. For example, Seattle banned landlords from screening qualified tenants.
Under their rules, landlords would have to rent on a first-come, first-served basis. You can’t choose the tenant who seems more likely to pay the rent on time and less likely to create disturbances. You can’t even choose someone with better qualifications like a better credit score and superior references.
Note that the entire state is swinging further to the extremes in the name of aiding tenants. For example, Tacoma recently passed a law requiring two months’ notice for no cause evictions while state law mandates three weeks. You also have to give someone four months’ notice if you will be displacing them to remodel the property or change its use.
10. The Relatively Favorable Tax Climate
Washington State came in 28 out of the 50 states in terms of its state and local tax burden. That alone makes it a far better choice for investors than California. There is no personal or corporate income tax. Sales taxes are relatively high, but that doesn’t affect owners of Tacoma real estate investment properties.
Property tax rates for the state can be described as average. One of the benefits of the lower home values in the Tacoma housing market is that you’re paying 0.85 percent property taxes on half the assessed value of a comparable home in Seattle.
Best of all, Washington State is going to reduce property tax levies in 2019. Furthermore, the city can’t increase its property tax collections more than one percent year over year, so you won’t face massive hikes in your property tax bills even if property values do go up ten percent a year.
For the sake of comparison, Texas limits increases in assessed property values to ten percent a year, and property tax rates can go up at the same time.
Tacoma Real Estate Investment
Maybe you have done a bit of real estate investing in Tacoma, WA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you are a home buyer or real estate investor, Tacoma real estate investment definitely has a track record of generating one of the best long term returns in the U.S. through the last ten years. If you invest wisely in Tacoma real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Tacoma, WA. Rents and property values in the Tacoma area are rising due to increased demand and constrained supply. This is an ideal time to buy. Furthermore, there are many reasons to consider investing in Tacoma real estate over homes and condominiums in nearby housing markets.
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 U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Tacoma real estate in 2019. However, we always recommend to do your own research and take help of a local real estate investment counselor.
Other Best Places in Washington To Invest in Real Estate
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 of 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 a sizzling market making news all round 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 investment. 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 an expert investment advise, 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, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Landlord Friendliness https://reason.com/2017/12/28/seattle-bans-landlords-from-screening-te
Stable housing market
Housing Market Data, Trends and Statistics