Summary: The Tacoma real estate market is likely to experience a slower rate of growth between April 2019 and April 2020 than in previous years. But, the market is still relatively hot and will likely remain competitive into the foreseeable future.
According to a recent housing market forecast from Zillow, home prices in Tacoma, Washington are expected to continue rising well into 2020 (and possibly beyond). The company’s real estate economists predict that house prices in the city could rise by around 5.3% between now and April 2020.
As of April 2019, median home values in Tacoma had risen by 10% between April 2018 and April 2019, 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 couple of 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 Price Forecast for 2020: Slowed Rate of Growth
It’s also worth noting that this recent Tacoma real estate forecast, which extends into 2020, predicts a slowed rate of growth in home value appreciation. According to various sources, housing values in Tacoma rose by more than 10% during 2017. And, according to Zillow, median home values grew by 10% between April 2018 and April 2019. So a 5.3% growth rate over the next 12 month period suggests a comparatively slower rate of growth than we’ve seen in the previous 2 years.
As of April 2019, the median home value in Tacoma was around $312,200. That’s still relatively affordable for the Seattle metropolitan area (Seattle’s median is currently north of $699,000), but it does mark a big increase from where Tacoma house values were just a few years ago.
Related: Tacoma home buying guide
A Return to Sustainable Growth
From an economic and housing standpoint, this is good news. Double-digit price gains are generally not sustainable over the long term because they outpace wage growth, leading to affordability problems.
The more moderate forecast for the Tacoma real estate market through 2017 and into 2018 suggest a return to normalcy, and a more sustainable pace of appreciation.
This doesn’t mean the Tacoma real estate market will be completely non-competitive in late 2019 and into 2020. Competition will likely remain relatively high in the area, due to limited inventory.
According to a recent report from the Northwest Multiple Listing Service, the number of homes listed for sale in Western Washington has increased since last year, hovering a bit above 16,000. King County showed the greatest gains in inventory. 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 2018. 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.