The December 2022 housing market statistics are out and there are a few notable changes that are worth diving into.
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We’ve broken down the housing statistics for Tacoma City at large, area code 98407 (North Tacoma) 98408 (South Tacoma) and 98404 (East Tacoma). That statistics and data are in reference to December 2021 and are pulled directly from the Northwest Multiple Listing Service (NWMLS) where Realtors and third parties list properties for sale.
Here’s the news you’ve been waiting for… has our housing market appreciated this year, despite the rising interest rates? The simple answer is YES.
Median Home Values for December 2022 compared to December 2021:
Tacoma at large appreciated 7.5% over the course of one year. Our median home value rose from $440,000 to $474,000.
- Area code 98407 appreciated 11.6%, Median Home value rose from $583,000 to $650,750
- Area code 98408 appreciated 5.5% from $400,000 to $422,000
- Area code 98404 appreciated 8.6% from $396,000 to $430,000
Average Price Per Square Foot December 2022:
- Area code 98407 average price per square foot $354
- Area code 98408 average price per square foot $288
- Area code 98404 average price per square foot $290
Contrary to popular belief, price per square foot is one very small factor in assessing the value of a home, but not the determinant as some expect. The difference in each of these area codes is notable. Discussing the changes we are seeing in the housing market is as important as the nuances we see within each community and home.
Average Days on Market December 2022 vs. December 2021:
It’s taking far longer for homes to sell and that’s true in all neighborhoods of Tacoma. Buyer’s monthly mortgage payment to purchase a home today vs. 1 year ago is hundreds if not thousands of dollars more every month. As such, Home Buyer’s are being less hasty and taking their time given the sudden change in affordability. More home buyers are choosing to purchase homes that have an additional dwelling unit or potential for monthly revenue to offset their mortgage. Homes with an already complete ADU are much more competitive and some receiving multiple offers and escalating offers.
- Area code 98407 average days on market December 2022: 24 & December 2021: 17
- Area code 98408 average days on market December 2022: 28 & December 2021: 17
- Area code 98404 average days on market December 2022: 51 & December 2021: 23
General Tacoma Area stats December 2022 compared to December 2021:
530 homes were for sale in December of 2022, that’s a 47.3% increase from December 2021 where just 359 homes were for sale Dec. ’21. We often refer to “Months of Inventory” to depict the surplus or deficit of homes for sale. Months of Inventory is calculated by dividing the number of homes that are for sale. This is an important measurement because it is the key indicator to determine whether we are in a Buyer or Seller’s Market. Currently we have 1.3 months of inventory compared to last year we had 0.8 Months (eek!) In a balanced market, we should see about 4 months of inventory.
The overall issue in our housing market is simply affordability. The factor of affordability cannot be understated. The median household income in Tacoma in 2021 was just shy of $70,000 per year. Purchasing a median priced home for $473,000 is a heavy bill for to front for the average household. New homeowners (on average) are spending over 30% of their monthly income on housing.
