The Seattle real estate market has generated a slew of headlines in recent months, mostly due to rapidly rising home values. While it gets less attention, the Tacoma housing market has also had a big year for home price gains. Looking forward, real estate forecasts suggest Tacoma could see significant price gains in 2017 as well.
Tacoma Housing Market Forecasts for 2017
It has been a big year for the Tacoma real estate market, just as predicted. At the end of 2015, the real estate listings company Zillow ranked the city among top ten “Markets to Watch in 2016.” The ranking was justified. Home prices in and around the city rose by double digits over the last year or so, far exceeding the national rate of appreciation.
According to Trulia, the median sales price in the city rose by 10% over the last year (Aug. 2015 – Aug. 2016). Zillow reported an even bigger gain of 13.3% during roughly the same time period. Different sources, different figures. The point is the Tacoma residential real estate market has appreciated rapidly over the last year, which is good news for area homeowners.
The ‘Seattle Effect’ on Home Prices
In some ways, the gains seen in Tacoma are a result of the “Seattle effect.” It’s part of a metropolitan area that has become one of the hottest real estate markets in the country.
But Tacoma itself has plenty of positives that are fueling its housing market. The city offers rugged beauty, a wealth of cultural attractions, and homes that are much more affordable than nearby Seattle.
As of August 2016, the median price for a single-family home in Tacoma was around $230,000 (source: Trulia and Zillow). The median price in Seattle during the same period was north of $600,000, according to the Northwest Multiple Listing Service. This makes Tacoma appealing to people with moderate incomes who want to live within the Seattle metro area.
Most housing market forecasts for Tacoma, and for the broader metro area, suggest that home prices will continue to rise in 2017. But the gains might be smaller than what we’ve seen over the last couple of years. This mirrors the predictions being made for the nation as a whole. The general consensus is that we could see a cooling trend next year.
Still, the Seattle metro area could continue to outpace the nation in 2017, as it has over the last year. Back in July, California-based Veros Real Estate Solutions issued a forecast for major metro areas across the U.S. They predicted the Seattle-Tacoma-Bellevue metro area would have the highest home-price appreciation from June 2016 to June 2017.
According to the report:
“The top forecast markets are showing appreciation in the 10% to 11% range with the Pacific Northwest and Colorado having a lock on the 8 of the top 10 forecast markets. Seattle, Wash. (+11.2%), Portland, Ore. (+11.1%), Denver, Colo. (+9.9%) and other metropolitan areas in these same vicinities appear very strong over the next year.”
The research team at Zillow recently offered this forecast for the Tacoma housing market, extending through the summer of 2017: “Tacoma home values have gone up 13.3% over the past year and Zillow predicts they will rise 5.7% within the next year.”
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Disclaimer: This story contains housing market forecasts and predictions for Tacoma, Washington and the broader Seattle metro area. Projections were made by third parties not associated with our company. We have compiled them here as an educational service to our readers.