Market Update for Homebuyers in Tacoma, WA for 2023

January 2, 2018
Last updated:
February 2, 2023
Post cover image
In This Article

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 2023, 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 2023.

Tacoma Housing Market Overview for 2023

As we head into early 2023, home prices in Tacoma are higher than they have ever been before. 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 $496,432 as of January 2023, a rise YoY of 4.1%. To put that percentage into perspective, home prices in the U.S. tend to rise somewhere between 3% and 5% annually, going back several decades. So, the recent gains in Tacoma are in line with historical averages.

Economists and analysts are predicting that the gains will continue to be strong into the new year, 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 2022-2023. 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 an eight week 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 2022 or 2023 should understand this supply-and-demand dynamic. It affects everything from your offer price to your negotiating abilities.

Live Tacoma Mortgage Rates

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 $913,416 as of January 2023. 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 $496,432 as of January 2023. 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 2023.

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 2023

As we’ve explained in previous blog posts, the official loan limits for Tacoma and the broader Seattle metro area have been increased for 2023. This change applies to FHA and conventional home loans (VA loan limits have been eliminated).

At the end of 2022, 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 2023 conforming loan limit for a single-family property went up to $891,250. The same loan limit applies to FHA loans.

This is good news for anyone planning to buy a home in Tacoma in 2023. 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 2.9 months as of January 2023. The supply of homes is slowly rising across the country as mortgage rates go up, making home buying less affordable.

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 2023. That information was gathered from third-party sources outside of our company and presented here as an educational service to our readers.

Get an Instant Mortgage Rate Quote Today

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.

Other Blogs You May Like
Boise Home Prices Are Rising Again, and It Could Continue in 2024
September 11, 2023
5 min read
Boise Home Prices Are Rising Again, and It Could Continue in 2024
Now, as we approach the fall of 2023, the Boise-area housing market seems to be entering yet...
Seattle Home Prices Report: Values Rose 12% Over the Past 5 Years
July 26, 2023
5 min read
Seattle Home Prices Report: Values Rose 12% Over the Past 5 Years
Home prices in Seattle rose by around 12% over the past 5 years. That even includes the drop in...
Show 139 more posts
from this category

Connect with a Mortgage Advisor Today!

Whether you’re buying a home or ready to refinance, our professionals can help.

Compare Mortgage Rates in Your Area Instantly

No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.

Subscribe to our newsletter