Tacoma Housing Market Trends for 2023
The Tacoma housing market is experiencing a few changes in 2023. In this blog post, we will be looking at the recent reports discussing the current trends in the Tacoma housing market. 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.
Median Listing Home Price
The median listing home price in Tacoma, WA was $450K in January 2023, trending down -3.2% year-over-year. This means that the median home price in Tacoma has decreased compared to the same period last year. The median listing home price per square foot was $295, which is a good indicator of the current housing market trends in Tacoma.
Median Listing Home Price vs. Median Home Sold Price
When we look at the median listing home price compared to the median home sold price, we can see that homes are selling for slightly less than their listed price. According to the report, the median home sold price in Tacoma was $430K, which is lower than the median listing home price of $450K. However, the sale-to-list price ratio is 100%, which means that homes in Tacoma are selling for approximately the asking price on average in January 2023.
Sale-to-List Price Ratio
As mentioned earlier, the sale-to-list price ratio is an important metric to understand the current housing market trends. A sale-to-list price ratio of 100% indicates that homes are selling for the asking price, while anything above 100% indicates that homes are selling for more than the asking price. On the other hand, a ratio below 100% indicates that homes are selling for less than the asking price. In January 2023, Tacoma, WA had a sale-to-list price ratio of 100%, indicating a balanced market.
Median Days on Market
Another important metric to consider when looking at the housing market trends is the median days on the market. The median days on the market in Tacoma, WA is 68 days, which means that on average, homes in Tacoma sell after 68 days on the market. It is interesting to note that the trend for median days on the market in Tacoma has gone up since last month and slightly up since last year.
Hence, we can see that the Tacoma housing market is experiencing a slight downward trend in the median listing home price. However, the sale-to-list price ratio indicates that homes are selling for the asking price, which is a good sign for the market. Additionally, the median days on the market are relatively stable, but it is increasing gradually. Overall, the Tacoma housing market is currently balanced, which means that the supply and demand of homes are about the same.
Tacoma Rent Prices
As of February 26, 2023, the average rent for a 1-bedroom apartment in Tacoma, WA is currently $1,445. This is a 4% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Tacoma decreased by -9% to $1,283. The average rent for a 1-bedroom apartment increased by 3% to $1,445, and the average rent for a 2-bedroom apartment increased by 1% to $1,725.
- The average rent for a 2-bedroom apartment in Tacoma, WA is currently $1,725. This is a 2% increase compared to the previous year.
- The average rent for a 3-bedroom apartment in Tacoma, WA is currently $2,263. This is a 1% increase compared to the previous year.
- The average rent for a 4-bedroom apartment in Tacoma, WA is currently $2,500. This is a 4% increase compared to the previous year.
Pierce County Housing Market Trends 2023
According to the February home sales report from the Northwest Multiple Listing Service, there was a significant increase in total active listings in January 2023 compared to the previous year. However, pending sales decreased by 5.75%, and closed sales decreased by 34.18%. Despite this, the median home price decreased slightly by 0.97%. The Pierce County market currently has 2.13 months of inventory, indicating a seller's market.
Based on the data presented, it appears that the Pierce County housing market has cooled off slightly since January 2022. While there were fewer active listings in January 2023 compared to the previous year, the median price for properties remained relatively stable, with only a slight decrease of 0.97%.
Buyers in the Pierce County market should expect to see a reduced number of available properties compared to last year, but may still encounter competition for desirable homes due to a low inventory of available listings. Additionally, the slight decrease in median price may present some opportunities for buyers to negotiate better deals. However, it's important to keep in mind that the market can shift quickly, so working with a knowledgeable real estate agent and staying up-to-date on market trends is essential for making informed buying decisions.
Tacoma Housing Market Forecast 2023
The Tacoma housing market is one of the most promising in the United States. Tacoma is located in Washington state and is known for its natural beauty, vibrant downtown, and proximity to Seattle. In this blog post, we will look at the latest trends in the Tacoma housing market for January 2023 based on a recent report released by Zillow.
Average Home Value
According to the Zillow Home Value Index (ZHVI), the average home value in Tacoma is $457,096 as of January 31, 2023. This represents a 1.4% increase over the past year. This increase is a positive sign for homeowners in Tacoma, as it indicates that the housing market is stable and growing.
Market Overview
The median sale-to-list ratio in Tacoma as of December 31, 2022, was 1.000. This means that homes in Tacoma are selling for their asking price on average. Additionally, 35.2% of sales were over the list price, while 42.1% were under the list price. This suggests that the Tacoma housing market is competitive, and buyers may need to offer above the asking price to secure a home. The median days to pending in Tacoma as of January 31, 2023, was 26 days. This means that homes in Tacoma are selling quickly, and buyers need to act fast to secure a home.
Neighborhoods in Tacoma
Tacoma has many vibrant neighborhoods, each with its unique characteristics and housing market trends. Some of the popular neighborhoods in Tacoma include North End, South End, and Central Tacoma. The median ZHVI for these neighborhoods ranges from $355K to $511K.
The Tacoma housing market is stable and growing, with an average home value of $457,096 and a 1.4% increase over the past year. Buyers may need to act fast and offer above the asking price to secure a home in the competitive housing market. Working with a local real estate agent can provide valuable insights into the local housing market and help buyers navigate the home-buying process.
Metro Level Forecast 2023-2024
According to the ZHVI data, the average home value in the Seattle-Tacoma-Bellevue area is $689,866, which is up 2.9% over the past year. This indicates steady and sustained growth in the market. While the 1-year market forecast for the Tacoma housing market is -1.1%, this negative forecast should not deter buyers, as the market remains healthy and stable.
The median sale-to-list ratio for the Tacoma housing market as of December 31, 2022, is 0.993, indicating that homes are selling very close to their listed prices. This suggests that the market is currently balanced, with neither buyers nor sellers having a significant advantage. 53.7% of home sales in the Tacoma housing market as of December 31, 2022, were above the listed price, while 36% of home sales were below the listed price.
This indicates that there is still room for negotiation in the market, but the majority of sales are happening at or above the listed price. The median days to pending for the Tacoma housing market as of January 31, 2023, is 22.7%, indicating that homes are going under contract in just over three weeks. This suggests a competitive and active market, with buyers moving quickly to secure homes they are interested in.
The Tacoma housing market remains healthy and stable, with steady growth in home values and a balanced market. While the 1-year market forecast may be negative, this should not deter buyers, as the market is still competitive and active. With homes going under contract in just over three weeks and a majority of sales happening at or above the listed price, it's a good time for buyers and sellers alike to consider the Tacoma housing market.
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 $457,000, while the median home value in Seattle is $831K. 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?
