Tacoma Housing Market 2022: Prices, Trends & Forecast
The Tacoma housing market was once seen as one of the most affordable housing markets nationwide. It didn’t take long for it to become overheated, as many housing markets did throughout the pandemic. Is it finally cooling off? Read on to find out everything you need to know about the Tacoma housing market prices, trends, and forecasts.
Tacoma Housing Market Prices
The Tacoma housing market is seeing many of the same price fluctuations that we’re seeing nationwide at this time.
The median price for all housing categories has increased, according to Redfin. The median sale price for homes is $465,000, an increase of 3.3% compared to last year.
Single-family homes barely saw a price increase, even though they are the most popular homes on the market right now. The median price of a single-family home in Tacoma is $455,000, which is only a 1.1% increase in price.
Townhouses saw a significantly larger price increase year over year. The median price of a townhouse on the Tacoma housing market is $457,500, an increase of 14.1%.
Condos and co-ops saw the most significant price increase year over year. The median house price in this category is now $799,502, an increase of 162%.
Tacoma Housing Market Trends
Overall, sales are down in the Tacoma housing market. Only 263 homes were sold in October, almost a 40% decrease in sales year over year. Houses spend an average of 20 days on the market, an increase of 14 days compared to last year.
Approximately 226 of the houses sold on the market fell in the category of single-family homes. While this makes up the majority of homes sold in Tacoma, it’s still about a 43% decrease in sales compared to last year. Single-family homes spend about 20 days on the market before selling, a 12-day increase year over year. Need to sell your house fast? Contact us today. We buy houses in Tacoma!
Only 4 of the houses sold on the Tacoma housing market were townhouses. That’s a 60% decrease in sales year over year. On average, townhouses spend 27 days on the market, a 20-day increase year over year.
At one point, townhouses were the most popular housing category in the Tacoma housing market, according to this article. However, this resulted in more people buying them and a low supply of townhouses. The market reacted naturally with price increases, further discouraging the purchase of townhouses. The low inventory has continued to see more price increases in this category.
About 28 of the homes sold fell into this category, almost a 30% increase in sales. These housing types spend a median of 55 days on the market, a 48-day increase year over year.
Condos and co-ops used to be the cheapest housing option on the Tacoma market. Now, the volatility in the market sees them as the most expensive in some months and the least expensive in other months. For example, in September 2022, the price for this housing category dipped into the $500,000 range. A mere one month later, it had increased by almost $300,000.
This is because of the low housing supply, as we saw in early 2022, according to this article. When there are ample houses, the prices go down. However, people buy them quickly because Tacoma is still a desirable place to live. That results in there being a lower supply, so prices go up. This is why the condo and co-op market is so volatile right now.
Tacoma Housing Market Forecasts
Tacoma shows signs of slowing down, but it will continue to be a seller’s market for quite some time. Tacoma was once overshadowed by the Seattle housing market but has become known as the more affordable housing market when comparing the two. It is close to Seattle, giving residents the same opportunities at a fraction of the price.
However, this has resulted in more people buying homes and a low inventory. The result of this will be higher prices and then fewer sales. This trend will continue as the market corrects itself.
Condos and co-ops will continue to be volatile for the next several months before this housing category finds the stability buyers seek.
Rising interest rates nationwide have resulted in and will continue to result in many buyers shying away from the market. This, combined with increasing prices, will continue to see buyers shy away from the market.
Over time, this will result in a higher housing inventory and prices coming down. However, we’re not going to see that for months or at least a year. Prices will come down gradually. We’re not looking at another housing bubble burst. Instead, we see a nationwide market correction due to the overheating we saw throughout the pandemic.
Now is not a great time for anyone in the Tacoma housing market, but it won’t stay that way.
Sellers are having a more challenging time selling, and it won’t be more accessible for quite a few months. The market is seeing more price drops, and this will continue. If you want to sell your property for maximum capital gains, it’s best to sell sooner instead than later. Hanging onto the property is not going to help you see more profit. Instead, you may wind up losing money. Sell it fast by finding a cash buyer in Tacoma.
Buyers are not in a much better situation short term. However, it does look promising in the long run. Over the next couple of years, interest rates will likely come back down, and buyers will have more bargaining power. We won’t see a buyer’s market soon, but there is a chance the Tacoma housing market will once again become a neutral market.
Investors should either sell now or plan on holding onto their investments for the long haul. Buyers will not feel confident in the market and economy for quite some time, meaning they won’t make a maximum profit for some time. Selling now while prices are still high is a good idea. Waiting until prices come down in the next year to purchase more investment properties will help you see better long-term gains as well.