Tacoma Real Estate Market Update Spring 2023

The Tacoma real estate market in Spring 2023 is bouncing back. The number of buyers for homes in Tacoma remains high (especially for homes under $600,000). We’re seeing the number of days a home spends on the market dropping and the median sales price increasing. In this post we will talk about what that means for home buyers, sellers, and investors.

Are Tacoma home prices going up or down?

As of April 2023 home prices are trending up in Tacoma and Pierce County after falling about 10% from Spring 2022 to Winter 2023. The current median sales price of a home in Tacoma is $460,000. The median sales price of a home in Pierce County is $510,000. Demand for homes in Tacoma and Pierce County remains very strong, especially for homes under $600,000 as buyers struggle to acquire financing for homes with higher interest rates.

What is it like selling a house in Tacoma right now?

There is still a demand for homes in Tacoma, especially homes that have been properly prepared for the market. As you can see in the chart above the number of days homes in Tacoma (and all of Pierce County ) is falling. Homes in Tacoma spend about 13 days on the market before receiving an offer. In Pierce County the number of days is 17. The effort that sellers make preparing their homes for sale is more important than ever. First and foremost, sellers need to have their homes thoroughly cleaned before they are photographed and put on the market. Additionally sellers should make sure that repairs that will impact a buyers ability to finance the property are prioritized.

What is it like buying a house in the Tacoma in Spring 2023?

Because the interest rates have gone up (essentially doubling from 3.5% to close to 7%- though rates are fluctuating) buyers find themselves facing higher mortgage payments. While we are seeing some seller’s homes sit on the market (Some buyers have even had the opportunity to buy homes contingent on the sale of their existing home) we’re also seeing multiple offers on certain homes. Staying fluid is important for buyers. Depending on the neighborhood, the price of the house, the condition of the house, and the size of the house- demand for homes can be high. Especially for homes under $600,000. Buyers and their buyers agents need to be on their toes and be constantly reevaluating the market as they go.

How is the market for investment properties in Tacoma in 2023?

The Tacoma Real Estate Market is seeing an overall shift (see our post Tacoma Real Estate Market 2023.)  On top of this national shift land use changes are the biggest change for investors in the Tacoma real estate market in 2023. It’s less about just numbers and more about how single family zoning is going away statewide. While the proposed legislation is still being hashed out at the state level, Tacoma is passing Home in Tacoma. Home in Tacoma is going to increase the amount of multifamily properties allowed in neighborhoods across the city, especially in specific corridors.

On the landlord/tenant side, things are going to get more strict when it comes to rent increases. Effectively, rent control has been proposed. At this point it’s made it’s way through committee at the state level and it remains to be seen how it manifests statewide in Tacoma. But with rents having increased so quickly and so much over the past few years, investors should be building rent control into their business plans.

Additional resources for Tacoma real estate investors:

How to Choose the Best Tacoma Real Estate Agent for You

Tacoma’s Most Expensive Neighborhoods

Tacoma’s Most Affordable Neighborhoods

The Most Affordable Neighborhoods in Pierce County