Summary: The Tacoma real estate market has been hot over the recent past and is expected to continue this trend throughout 2020. Let’s dig deeper into home prices in Tacoma, WA throughout the next few months.
According to a recent housing market forecast from Zillow, home prices in Tacoma, Washington are expected to continue rising at a rapid pace throughout 2020 (and possibly beyond). The company’s real estate economists predict that house prices in the city could rise by around 4.8% between now and February 2020.
As of February 2020, median home values in Tacoma had risen by 7.1% between February 2020 and February 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 2020: Rapid Rate of Growth
It’s also worth noting that this recent Tacoma real estate forecast, which extends into 2021, predicts a quick rate of growth in home value appreciation. According to various sources, housing values in Tacoma rose by more than 7.1% during the past 12 months. And, according to Zillow, median home values are expected to continue this trend.
As of February 2020, the median home value in Tacoma was around $342,200. That’s still relatively affordable for the Seattle metropolitan area (Seattle’s median is currently north of $751,000), 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 7% 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 2020.
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. Unsold inventory was down 47% in January from the same month in 2019.
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 2020 and 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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