Forecast: Tacoma, WA Home Prices to Continue Rising In 2023

Published:
March 13, 2017
Last updated:
November 4, 2022
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The Tacoma real estate market has been hot over the recent past and is expected to continue this trend throughout 2022.

According to real estate markets, home prices in Tacoma, Washington are expected to continue rising at a healthy pace into 2023. The price of an average home in the “Tacoma” area blew past WalletHub predictions of reaching $350,116 by July 2027, and is already $514,336 as of September 2022.

This is not surprising, given the current state of the Tacoma housing market. Home prices in the area have risen steadily over the last few years! This was due to an imbalance between supply and demand.

There are a lot of home buyers in the market, but a relatively limited number of properties available. Prices tend to rise under such conditions, and that’s exactly what they’ve been doing in Tacoma.

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Tacoma Home Prices in 2023: Healthy Rate of Growth

It’s also worth noting that this recent Tacoma real estate forecast, which extends to the end of 2022 and into 2023, predicts a quick rate of growth in home value appreciation. Current home prices as of September 2022 are at $514,336. Median home values in Tacoma had risen by 14.1% year-over-year, and Zillow sees more gains during the subsequent 12-month period.

That’s still relatively affordable for the Seattle metropolitan area (Seattle’s median is currently north of $982,600), but it does mark a big increase from where Tacoma house values were just a few years ago.

Related: Tacoma home buying guide

Tacoma: A Very Hot Real Estate Market

From an economic and housing standpoint, double-digit price gains are generally not sustainable over the long term because they outpace wage growth, leading to affordability problems.

But unlike other real estate markets in Washington State that have seen double-digit gains since 2012 only to plateau in mid-2018, Tacoma’s home price increases have been steady. In fact, the previous years have has been particularly hot for Tacoma as home prices saw over 22.1% between December 2020 and December 2021, and only slightly smaller increases through 2021 to 2022

That means the market is competitive right now for buyers as they compete for homes with others. This, coupled with tight inventory right now, is driving home prices up in Tacoma in 2022 and there is no sign this will change in early 2023.

Home sales in Pierce County are continually tight, according to the Northwest Multiple Listing Service (NMLS). This is especially true for lower-priced homes under $500,000, which are virtually non-existent.

Based on the information in this NWMLS report, it’s reasonable to assume that the Tacoma real estate market will remain very competitive for the foreseeable future.

Disclaimer: This story contains forecasts and home-price predictions for Tacoma, Washington, extending into 2023. These statements and data were provided by third parties not associated with our company. We have presented them here as an educational service to our readers.

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Do you plan to buy a home in Tacoma sometime soon? Do you need mortgage financing to complete your purchase? We can help. Sammamish Mortgage has been serving borrowers across the Pacific Northwest since 1992. This includes Washington State, Colorado, Idaho, and Oregon. We offer our clients many different mortgage programs with flexible qualification requirements to suit the needs of each borrower. Feel free to contact us today if you have questions about applying for a mortgage.

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