The Tacoma real estate market in 2021 can be summarized in one word: FRENZY.
In this video Tacoma real estate agent Marguerite Martin sits down with her niece and colleague Keryn to talk about what is happening in the market, what homes are selling for, how sellers can prepare to sell during an inventory shortage, and how buyers can compete.
What is happening in the Tacoma real estate market in 2021?
The Tacoma real estate market has been named the hottest real estate market in the country for the past few years. This surprises a lot of people. The real Tacoma’s real estate market is the hottest in the country is a shortage of homes to sell. Tacoma’s population is growing (both the population of people who were born here and folks moving to Tacoma from other states and from Seattle/King County) but the city and county build relatively little. With the pandemic in 2020 many workers are now fully remote. Now that they don’t have to worry about commuting, many folks are choosing Tacoma as a beautiful and affordable place to live.
Is the Tacoma housing market in a bubble?
The Tacoma real estate market is not in a bubble- though we here at MovetoTacoma.com would say it is in crisis. There is an extreme inventory shortage and insufficient housing being built. The main problem that creates is that home prices are increasing very quickly. In 2020 Pierce County home prices increased 15%. Some of that increase has been offset by mortgage interest rates going down (that makes it easier for buyers to make payments on a more expensive home). That said, no one trying to buy a house in Tacoma right now would call our current housing market sustainable or affordable. People are putting more money down and the market is seeing more cash buyers- so it is not a bubble. The housing supply is insufficient. It’s a crisis.
Are home prices in Tacoma still less than Seattle?
The average Pierce County home is 36% more affordable than homes in King County. The median home price in King County at the end of 2020 was at $644,950 compared to $435,000 in Pierce County. Pierce County’s median home price increased more than 15% in 2020 while King County’s went up by 10%. King County has more condos in their market than Pierce County does and demand for condos has decreased during the pandemic- so that skews King County’s appreciation numbers a bit. It’s a good time to get a deal on a condo in Tacoma and in Seattle.
Tacoma homes buyers need to be PREPARED in 2020
If you’re planning to buy a house in Tacoma in 2021 (especially if you’re spending less than $600,000) it is going to be extremely challenging. There are fewer homes on the market to choose from compared to 2020. Being successful in the Tacoma housing market is going to require you to have an AWESOME buyers agent, have your financing completely pre-approved and ready to go, and require some flexibility on location and home size.
Unprepared and unrepresented sellers are losing money in Tacoma right now
The truth is, in this hot Tacoma market where the demand exceeds the available homes- your house is going to sell. As Keryn says in the video, even minor preparation and care can mean an increase of tens of thousands of dollars for sellers. Preparation might mean different things if you’re selling your own home vs selling a rental or investment property, so make sure you work with a seller’s agent that specializes in the type of home you are selling and in the neighborhood that house is in.
MovetoTacoma.com creator Marguerite Martin is a different kind of Tacoma real estate agent. Reach out to find out answers to questions you have about neighborhoods in Tacoma and Pierce County. When the time is right to start looking, Marguerite can connect you with a local real estate agent who specializes in the neighborhoods you love most. Click here to talk to Marguerite.