Tacoma, Washington Housing Market Forecast Into 2024

July 24, 2023
Last updated:
January 23, 2024
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We tend to publish a lot of real estate market updates and reports relating to the Seattle metropolitan area as a whole. As a consumer-minded Seattle area mortgage company, we do our best to keep local home buyers and homeowners well informed.

But as you probably know, housing market conditions can vary from one city to the next, even within the same metro area.

So today, we’ll be examining current real estate market trends and conditions in Tacoma, Washington — one of the most affordable housing markets in the Seattle area.

Tacoma Housing Market Update For 2024

As of early 2024, the real estate market in Tacoma, Washington can be summed up in a single sentence: Things cooled down briefly in 2022 and 2023 as mortgage rates rose, but the market is currently heating back up again.

Tight supply conditions continue to challenge buyers and increase competition within the local real estate market. As a result, the overall pace of home sales in the Tacoma area has increased over the past few months.

Granted, things are not as “heated” as they were back in 2021. But they’re not far off from that either. Anyone planning to buy a home in Tacoma in 2024 should pay close attention to these trends, since they directly influence the level of competition in the market.

Here’s an in-depth look at current real estate conditions in Tacoma, Washington for 2024.

Tight Supply Conditions Continue to Challenge Buyers

Housing market inventory levels in Tacoma have been running low for a long time now, even before the nationwide home-buying surge brought on by the COVID pandemic.

Supply levels dropped further during 2021, ending that year at a record low 0.3-month supply of homes for sale. To put that number into context, a “balanced” real estate market has somewhere between four to five months of supply.

Inventory levels began to rise again in 2022, as the real estate market cooled down. But even then, Tacoma’s housing market supply levels were still well below normal.

The next chapter of this story began in January 2023, when supply levels began to drop again. This was partly due to a sharp rise in mortgage rates, which made a lot of would-be sellers hesitant to list their properties for sale. As of early 2024, the Tacoma real estate market is back down to about a one-month supply of homes for sale.

To summarize: supply levels within the Tacoma, Washington housing market have had their ups and downs over the past few years. But they continue to remain low by historical standards, forcing buyers to compete for a limited number of properties.

Still a Highly Competitive Real Estate Market

The Tacoma housing market remains highly competitive in 2024, due to very low inventory and steady demand from local home buyers. Overall, the market has accelerated considerably, with a current sales pace that almost rivals the frenzied days of 2021.

During 2022, the median number of “days on market” rose from around 10 days to nearly 40 days. This was part of a nationwide real estate slowdown largely influenced by rising mortgage rates. But during the first quarter of 2024, the “days on market” metric began to drop again, indicating a re-energized real estate market.

As of early 2024, homes listed for sale in Tacoma, Washington were spending less than 20 days on the market, on average. All of these clues points to a highly competitive housing market with strong demand from buyers.

The national real estate brokerage Redfin has labeled this real estate market “very competitive“. According to their market analysis for Tacoma, as of early 2024:

“Homes in Tacoma receive 2 offers on average and sell in around 20 days. On average, homes in Tacoma sell after 20 days on the market compared to 37 days last year.”

The percentage of homes selling for more than the list price has also risen over the past six months, another sign of increased competition in the market.

Prices Expected to Start Rising Into 2024

Home prices in Tacoma dipped slightly toward the end of 2022, as part of the real estate cooling trend mentioned earlier. That same trend has played out in cities all across the country. The short version is that the housing market has “corrected” itself from the unprecedented price growth of the past three years.

But this is a blip on the radar that will probably soon pass. History shows that home prices in Tacoma, Washington tend to rise steadily over time (with the notable exception of the 2008 Great Recession).

In fact, the latest month-to-month data show that the home-price downturn in Tacoma might be beginning to level off. Based on the current supply and demand situation within this real estate market, it seems likely that prices will remain flat for a brief period and then begin rising again during the latter part of 2024.

Other real estate market predictions for the area have echoed this sentiment, suggesting that home prices will begin to rise at a more moderate pace going into 2024. If these predictions turn out to be even remotely accurate, the next few months could be an ideal time to buy a home in Tacoma. Those who postpone their purchases might encounter rising prices and reduced affordability.

Need a Mortgage in Tacoma?

Do you plan to buy a home in Tacoma sometime soon and need mortgage financing to complete your purchase? We can help. Sammamish Mortgage has been helping borrowers across the Pacific Northwest since 1992, including Washington State, Colorado, Idaho, and Oregon. We offer many different mortgage programs with flexible qualification requirements to suit the needs of each borrower, including our Diamond Homebuyer ProgramCash Buyer Program, and Bridge LoansContact us today if you have questions about applying for a mortgage.

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