Tacoma Housing Market Trends and Forecast for 2024 – Norada Real Estate Investments

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Nestled in the scenic beauty of the Pacific Northwest, Tacoma, WA has captured the hearts of both residents and potential homebuyers alike. With its stunning natural landscapes, vibrant cultural scene, and booming economy, it’s no wonder that the Tacoma housing market has been a topic of interest for many. Tacoma is currently a seller’s housing market, which means that there are more people looking to buy than there are homes available.

How is the Tacoma housing market doing currently?

According to Realtor.com, the median listing home price stands at $500K, with a median listing home price per square foot of $307. Notably, the median sold home price is $465.2K. In December 2023, the Tacoma housing market saw a 7.1% year-over-year increase in the median listing home price, reaching $500K.


Buy/sell, rent/lease residential &
commercials real estate properties.

Homes in Tacoma tend to sell for approximately the asking price, reflecting a 100% sale-to-list price ratio. The city is currently a seller’s market, indicating high demand with more potential buyers than available homes. The median days on market for homes in Tacoma is 55 days, a metric that has seen a slight increase since last month but a decrease compared to the previous year.

Tacoma Apartment Rent Prices 

As of January 2024, the median rent for all bedroom counts and property types in Tacoma, WA is $1,645. This is -15% lower than the national average. Rent prices for all bedroom counts and property types in Tacoma, WA have decreased by 19% in the last month and have decreased by 3% in the last year.

Tacoma Housing Market Forecast for 2024

According to the latest data from Zillow, the average home value in Tacoma stands at $458,396, reflecting a modest increase of 1.6% over the past year. Based on the current market indicators, there is no immediate sign of a housing market crash in Tacoma. The steady rise in home values and the relatively short time homes spend on the market indicate a stable and robust real estate environment.

Homes in this market typically go pending in approximately 16 days, indicating a brisk pace of transactions. This data is through December 31, 2023.

Inventory and New Listings

  • For Sale Inventory (December 31, 2023): 452 homes
  • New Listings (December 31, 2023): 145 properties

Sale and List Prices

  • Median Sale to List Ratio (November 30, 2023): 1.000
  • Median Sale Price (November 30, 2023): $433,667
  • Median List Price (December 31, 2023): $486,658

Market Dynamics and Percentages

  • Percent of Sales Over List Price (November 30, 2023): 38.7%
  • Percent of Sales Under List Price (November 30, 2023): 38.4%

Are Home Prices Dropping in Tacoma?

Contrary to a drop, the Tacoma housing market has witnessed a 1.6% increase in average home value over the past year. This suggests a trend of appreciation rather than depreciation in property values.

For prospective buyers, the decision depends on personal circumstances and preferences. While the market is competitive, interest rates and the appreciation of home values suggest that now could be a favorable time to consider a purchase.

Keep in mind that the real estate market is influenced by various factors, and consulting with a local real estate professional is advisable for personalized advice.

Tacoma Housing Market Forecast for 2024
Source: Zillow

Tacoma Real Estate Investment Overview

Tacoma, Washington, has emerged as a favorable destination for real estate investors due to its strong housing demand and sustained growth. As the state’s third-largest city, Tacoma has a population of around 220,000, and it’s growing at a rate of 0.78% annually. Furthermore, it is a satellite city located at the southern end of the Seattle metropolitan area, which is home to approximately a million people. The Tacoma housing market has remained resilient in recent years, and real estate investors have found favorable returns in the short term.

Top Reasons to Invest in Tacoma Real Estate:

  • Strong Demand: The demand for housing in Tacoma has consistently remained strong due to its growing population and proximity to the Seattle metropolitan area. Additionally, Tacoma is home to several prominent employers, including Joint Base Lewis-McChord, MultiCare Health System, and the Port of Tacoma. This demand is expected to continue to increase, making Tacoma an excellent destination for real estate investors.
  • Affordable Prices: Despite being a part of the Seattle metropolitan area, Tacoma offers more affordable housing options compared to Seattle. The median home value in Tacoma is around $474K, while the median home value in Seattle is > $800K. This affordability factor makes it an attractive destination for first-time homebuyers and real estate investors alike.
  • Positive Growth Outlook: According to the Zillow Home Value Index (ZHVI), Tacoma’s average home value has steadily grown over the past year, indicating a positive growth outlook. Additionally, the Tacoma housing market is expected to continue growing in the coming years, making it a favorable destination for real estate investors.
  • Low Vacancy Rates: The vacancy rates in Tacoma are relatively low, indicating a stable and active housing market. This is good news for real estate investors looking to rent out their properties as they can expect a steady stream of rental income.
  • Diverse Housing Options: Tacoma offers a diverse range of housing options, from single-family homes to townhouses and condos. This diversity makes it easier for real estate investors to find a property that suits their investment goals.
  • Economic Growth: The economy in Tacoma has been growing steadily, with several new businesses and industries moving to the area. This economic growth is expected to continue in the coming years, which will likely further boost the demand for housing in Tacoma.

In conclusion, the Tacoma housing market offers a favorable destination for real estate investors due to its strong demand, affordability, positive growth outlook, low vacancy rates, diverse housing options, and economic growth. With these factors in mind, it’s easy to see why Tacoma is becoming a popular destination for those looking to invest in real estate.

How Should Buyers Invest in This Market?

There is no one-size-fits-all answer to how buyers should invest in the Tacoma real estate market, as each buyer’s situation is unique. However, there are some general tips that can help buyers make informed investment decisions:

  • Work with a local real estate agent: Working with a local agent who is familiar with the Tacoma market can be invaluable. They can provide insight into market trends, help buyers identify investment opportunities, and negotiate on behalf of their clients.
  • Conduct thorough research: Buyers should do their due diligence and research the Tacoma market before investing. This can include analyzing historical sales data, examining current market trends, and identifying areas with potential for growth.
  • Consider long-term investment goals: Real estate investing can be a long-term strategy, so buyers should consider their long-term investment goals. For example, if a buyer is interested in rental properties, they should consider factors such as rental rates, vacancy rates, and potential for future rental demand.
  • Have a solid financial plan: Investing in real estate can be expensive, so buyers should have a solid financial plan in place. This can include having a pre-approval for a mortgage, a solid down payment, and a plan for ongoing maintenance and repairs.
  • Diversify investments: Investing in real estate can be a great strategy, but it’s important to diversify investments to minimize risk. Buyers should consider diversifying their investments across different types of real estate, geographic locations, and asset classes.

References

  • https://www.zillow.com/tacoma-wa/home-values
  • https://www.nwmls.com/
  • https://www.zumper.com/rent-research/tacoma-wa
  • https://www.redfin.com/city/17887/WA/Tacoma/housing-market
  • https://www.neighborhoodscout.com/wa/tacoma/real-estate
  • https://www.realtor.com/realestateandhomes-search/Tacoma_WA/overview
  • https://www.fhfa.gov/DataTools/Tools/Pages/FHFA-HPI-Top-100-Metro-Area-Rankings.aspx?

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