The year 2020 has been a busy one for the real estate market. But what will 2021 be like? Check out this infographic to learn more.
The Tacoma real estate market has been hot over the recent past and is expected to continue this trend throughout 2021.
According to a recent housing market forecast from Zillow, home prices in Tacoma, Washington are expected to continue rising at a rapid pace throughout 2021 (and possibly beyond). The company’s real estate economists predict that house prices in the city could rise by around 12.0% between now and January 2021.
As of January 2020, median home values in Tacoma had risen by 15.8% between January 2020 and January 2021, and Zillow sees more gains during the subsequent 12 month period.
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, and by double digits in 2017 and 2018! 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.
Tacoma Home Prices in 2021: Rapid Rate of Growth
It’s also worth noting that this recent Tacoma real estate forecast, which extends into 2022, predicts a quick rate of growth in home value appreciation. According to various sources, housing values in Tacoma rose by more than 15.8% during the past 12 months. And, according to Zillow, median home values are expected to continue this trend.
As of January 2021, the median home value in Tacoma was around $389,889. That’s still relatively affordable for the Seattle metropolitan area (Seattle’s median is currently north of $804,504), 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 past year has been particularly hot for Tacoma as prices saw over 15.8% increases over a 12-month period.
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 2021.
Home sales in Pierce County are continually tight, according to the Northwest Multiple Listing Service (NMLS). This is especially true for lower-prices 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 2021. These statements and data were provided by third parties not associated without our company. We have presented them here as an educational service to our readers.
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