The Tacoma housing market has gone through some changes over the last few years. If you’re looking to buy a home in the Tacoma area in 2024, check out our update on the area’s real estate market to help you make a more informed purchasing decision.
The Tacoma real estate market has changed dramatically over the last few years. So, we thought it would be helpful to publish a real estate market update for those who are planning to buy a home in Tacoma, Washington, in 2024.
Tacoma Housing Market Overview for 2024
As we head into early 2024, home prices in Tacoma are very high. In fact, the housing market in Tacoma is very hot right now, with prices rising quickly and steadily. This is partly due to the “Seattle effect,” given that Seattle has some of the highest home prices in the state, and the country.
According to the real estate information company Zillow, the median home value for Tacoma, Washington, rose to $462,500 as of January 2024, a rise YoY of 0.8%.
Economists and analysts are predicting that the gains will continue to be steady into 2024, both in Tacoma and across the state of Washington.
That said, the inventory situation is another important factor for anyone planning to buy a home in Tacoma in 2024. We started the year with very low inventory levels within the housing market, and things are improving only very slowly.
According to experts, Tacoma and the surrounding Pierce County are still currently experiencing a significant shortage in housing inventory. Right now, there is on average a 1-month supply of homes available for sale.
According to housing experts, a balanced real estate market has somewhere around five to six months’ worth of supply. Given Tacoma’s current housing supply, it’s clearly still a seller’s market in terms of the inventory situation.
There are still plenty of buyers in the market, but not enough properties listed for sale to satisfy the demand. Home buyers who are planning to buy a house in Tacoma in 2024 should understand this supply-and-demand dynamic. It affects everything from your offer price to your negotiating abilities.
Cost Comparison: Buying a Home in Tacoma vs. Seattle
Home prices across the Seattle metro area have risen sharply over the last few years. Seattle’s prices are some of the highest in the state. According to the latest data, the median home value in Seattle is $824,264 as of January 2024. But prices tend to drop off when you move into the surrounding areas, and that goes for Tacoma as well.
As mentioned above, the median home value in Tacoma is $462,500 as of January 2024. That’s a significant difference from the median for Seattle. This is good news for those who are planning to buy a house in Tacoma, Washington, during early 2024.
Housing is more affordable in Tacoma while allowing homeowners to still be within a decent commute to the largest city in the state of Washington for employment purposes.
Loan Limits for 2024
As we’ve explained in previous blog posts, the official loan limits for Tacoma and the broader Seattle metro area have been increased for 2024. This change applies to FHA and conventional home loans (VA loan limits have been eliminated).
At the end of 2023, federal housing officials announced that they would increase loan limits for all of these programs due to significant home-price gains that occurred during the year. Most counties across the nation are now seeing higher limits this year compared to last.
In Tacoma, the 2024 conforming loan limit for a single-family property went up to $977,500. The same loan limit applies to FHA loans.
This is good news for anyone planning to buy a home in Tacoma in 2024. These changes will give buyers a higher financing range without having to cross over into jumbo loan territory. (Borrowers with sufficient income and good credit can still borrow more than these limits, with a jumbo mortgage.)
A National Real Estate ‘Crunch’
The nation as a whole is experiencing a real estate supply crunch right now. Across the country, the average supply level was around 3.5 months as of January 2024. The supply of homes has slowly risen across the country as mortgage rates jumped, making home buying less affordable. But with rates on their way down, hopefully we may see an improvement in inventory as more homeowners decide to list their homes for sale.
The current supply means the market still is not balanced, and there aren’t enough homes for sale to meet demand. So, it’s affecting homebuyers in a lot of markets nationwide; and therefore, things are not just particularly tight in Tacoma and other cities in the Seattle area. Moreover, these conditions are likely to persist.
As a result, you can expect the current supply-and-demand situation in real estate markets across the country to keep putting upward pressure on home prices for the foreseeable future.
Disclaimer: This article contains projections and forecasts for the Tacoma housing market extending well into 2024. That information was gathered from third-party sources outside of our company and presented here as an educational service to our readers.
Need a Mortgage Loan in Tacoma, WA?
If you have any questions about mortgages in Tacoma, Sammamish Mortgage is here to help. We’re a local, family-owned company based out of Seattle & Bellevue, Washington since 1992. Not only do we serve the state of Washington, but also the broader Pacific Northwest regions: WA, OR, CO, & ID. We’ve got plenty of mortgage programs for you to choose from, giving you many options. Get in touch with us with any mortgage-related questions you may have.