Tacoma, WA, known for its scenic beauty and thriving community, has become a sought-after destination for homebuyers. In this blog post, we will delve into the current state of the housing market in Tacoma, focusing on the median listing home price, sale-to-list price ratio, and the average days homes spend on the 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 housing market in Tacoma, WA maintains its stability, with the median listing home price remaining flat year-over-year.
The sale-to-list price ratio indicates that homes are being sold at or near their asking prices, highlighting a competitive market. Although the median days on the market have seen a slight increase, Tacoma remains a desirable location for homebuyers, with varied neighborhoods catering to different budgets and preferences.
Median Listing Home Price: Stable Year-over-Year
In April 2023, the median listing home price in Tacoma, WA remained steady at $485,000, showing no significant change compared to the previous year. This consistency in prices indicates a balanced market, providing stability for both buyers and sellers.
Median Listing Home Price per Square Foot
The median listing home price per square foot in Tacoma, WA was $308, reflecting the value that homebuyers can expect for their investment. This metric allows potential buyers to make informed decisions based on the size and price of properties.
Median Home Sold Price: $443.8K
The median home sold price in Tacoma, WA was recorded at $443,800. This figure represents the actual price at which homes are selling, giving an accurate measure of market activity. It is essential to consider the median sold price alongside the listing price to gauge buyer-seller negotiations and overall market health.
Sale-to-List Price Ratio: Close to Asking Price
In April 2023, homes in Tacoma, WA sold for approximately the asking price on average. The sale-to-list price ratio of 100.01% suggests that sellers are receiving offers close to their initial listing prices. This indicates a high demand for homes and a competitive market for buyers.
Tacoma, WA: A Seller’s Real Estate Market
The housing market in Tacoma, WA continues to favor sellers in April 2023. This means that there are more people looking to buy homes than there are properties available. With a limited supply and high demand, sellers have an advantage, potentially leading to multiple offers and bidding wars. Buyers need to be prepared to act swiftly and make competitive offers in this market.
Median Days on Market: 27 Days
On average, homes in Tacoma, WA sell after spending 27 days on the market. This metric provides insight into the pace at which homes are being bought and sold. It is worth noting that the median days on the market in Tacoma have increased since last month, suggesting a slight slowdown in the market. However, compared to the previous year, the trend remains relatively consistent.
Neighborhoods in Tacoma
Tacoma comprises eight distinct neighborhoods, each with its own unique characteristics and housing market dynamics. Among these neighborhoods, North End stands out as the most expensive, with a median listing home price of $820,000. This neighborhood offers upscale properties and desirable amenities, attracting buyers seeking a luxurious lifestyle. On the other hand, South Tacoma emerges as the most affordable neighborhood, with a median listing home price of $385,000. It provides opportunities for buyers with more budget-conscious preferences while still offering a desirable living environment.
Tacoma Rent Prices
As of June 2023, the average rent for a 1-bedroom apartment in Tacoma, WA is currently $1,400. This is a 1% decrease compared to the previous year. Over the past month, the average rent for a studio apartment in Tacoma increased by 4% to $1,300. The average rent for a 1-bedroom apartment remained flat, and the average rent for a 2-bedroom apartment increased by 1% to $1,730.
The average rent for a 2-bedroom apartment in Tacoma, WA is currently $1,730. This is a 5% increase compared to the previous year.
The average rent for a 3-bedroom apartment in Tacoma, WA is currently $2,208. This is an 8% decrease compared to the previous year.
The average rent for a 4-bedroom apartment in Tacoma, WA is currently $3,100. This is a 31% increase 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.
Average Home Values: $468,403
According to Zillow, as of April 30, 2023, the average home value in Tacoma, WA stands at $468,403. This figure represents the general price range that buyers can expect when looking for properties in the area. It is crucial to keep in mind that home values can vary significantly depending on factors such as location, size, and condition.
1-Year Value Change: -4.6%
Over the past year, the Tacoma housing market has seen a decline in average home values, with a 4.6% decrease. This change indicates a slight downward trend in the market. While it’s important to consider this decline, it’s worth noting that real estate markets can be influenced by various factors and can experience fluctuations over time.
Sale-to-List Ratio: Median at 1.000
As of March 31, 2023, the median sale-to-list ratio in Tacoma is 1.000. This ratio suggests that, on average, homes are selling at their listed price. It indicates a balanced market where sellers are receiving offers close to their initial asking prices, and buyers are able to negotiate within a reasonable range.
Percentage of Sales over and under List Price
According to data from March 31, 2023, approximately 36.4% of sales in Tacoma were conducted over the list price. This statistic implies that a significant portion of buyers is willing to compete and offer more than the asking price to secure a property. On the other hand, around 38.7% of sales were under the list price, indicating that there is still room for negotiation and opportunities for buyers to find deals.
Median Days to Pending: 6 Days
The median days to pending, as of April 30, 2023, is 6 days. This metric measures the average time it takes for a property to go under contract after being listed. A low median days to pending indicates a fast-paced market with high demand and quick buyer response. Properties in Tacoma are moving swiftly, and sellers should be prepared to act promptly to capitalize on this trend.
Forecast and Conclusion
Based on the current data, the Tacoma housing market appears to be experiencing a stable and competitive environment. While there has been a slight decline in average home values over the past year, the sale-to-list ratio suggests that sellers can expect offers close to their listing prices. The percentage of sales over list price demonstrates a willingness among buyers to compete and pay a premium for desirable properties.
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.
Source: Zillow
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.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?
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