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A Year in Review and What’s Ahead
As we wrap up 2024, the Tacoma and Pierce County real estate market has demonstrated resilience and adaptability. This year, buyers and sellers navigated a dynamic landscape influenced by fluctuating mortgage rates, evolving inventory levels, and shifting buyer preferences. Now let’s dive into emerging trends, insights, and predictions for the year ahead.
Market Trends in 2024
Median Sales Price Stability
Despite nationwide volatility, the Tacoma housing market showed remarkable stability. The median sales price for residential properties in Pierce County hovered around $540,000, reflecting a slight increase compared to $515,000 in 2023. This steady trend underscores the region’s continued appeal and affordability relative to neighboring King County ($790,000 as of December 2024).
Click here for Median Price Data Locally
Inventory Challenges
Inventory remained a critical factor, with a limited supply of homes continuing to drive competition in certain price ranges. Correctly priced (aka accurate market value) & move-in-ready homes in all price ranges saw the most activity, often resulting in multiple-offer scenarios.
Buyer Behavior
Buyers leaned towards properties offering more value, including homes with energy-efficient features and those located in walkable neighborhoods. The influence of hybrid work models further boosted demand for suburban and semi-rural properties in Pierce County.
Market conditions typically favor buyers when active/pending inventory ratios are 2 or higher. We have seen an increasing trend in average days on the market since April, while the month’s inventory supply has started to absorb at a sharp rate. We can expect more favorable conditions for sellers beginning in 2025.
https://nwmls.stats.showingtime.com/infoserv/s-v1/v62O-bMW
Key Pierce County Stats for 2024 (year over year)
- Median Sales Price: $540,000 (+4.9%)
- Average Days on Market: 29 (+38.1%)
- Total Homes Sold: 822 (+27.4%)
- Months of Inventory: 2.1
- Mortgage Rates: ~6.7% (Last week of December)
These metrics highlight the market’s trajectory and provide buyers, sellers, and investors valuable context.
Looking Ahead to 2025
As we approach 2025, several factors are poised to shape the real estate market in Tacoma and Pierce County:
- Potential Rate Adjustments: Economists predict that mortgage rates may stabilize or slightly decline, encouraging more first-time homebuyers to enter the market. Though the reality is that they have remained volatile after spiking into the 7% range.
- Increased New Construction: Builders are expected to ramp up efforts to meet demand, particularly in the mid-range and entry-level price points.
- Sustainability Trends: Homes with eco-friendly features will likely remain a priority for buyers, aligning with broader societal shifts toward sustainability.
For homeowners considering selling, 2025 could present an ideal window of opportunity as demand persists and inventory levels gradually improve.
Conclusion
The Tacoma and Pierce County real estate market remained strong in 2024, and professionals and their clients showed adaptability amidst changing conditions with the increase in total number of sales (despite those pesky rates!)
Whether you’re looking to buy, sell, or invest, understanding these trends and data points for your specific neighborhood is essential in preparing to buy or sell in the current market.
If you’re curious about how these insights might impact your real estate goals, feel free to reach out.
Let’s plan a successful 2025 move together!
~Spencer (REALTOR licensed at Windermere Abode)
253.254.6044 or spencer@windermere.com
ig- spencer_eiseman
Schedule an appointment with me HERE
