Surely, you’ve heard the news: interest rates have risen (almost doubled) since the beginning of the year and inflation is at an all time high. Is now the right time to buy or sell your home in North Tacoma? While “rising interest rates” isn’t the best thing to hear if you’re a homebuyer, it is actually a lot better for the housing market as a whole. We’re breaking down the data for North Tacoma neighborhoods, specifically 98407 and 98403 zip codes.
Inventory (number of homes for sale)
Arguably one of the biggest changes for this North Tacoma Market Update compared to our last update is the number of available homes for sale. In January 2022, the inventory was at an all time low and just nine homes were available. As of June 2022, 42 homes are available in the same area. Homebuyers have more options. Rising interest rates and inflation are the drivers of the softened the market, but it is STILL a sellers market in North Tacoma. The comparison of our current real estate market to 3 – 12 months ago is necessary. Just keep in mind that the the last year was record breaking: At times, less than 0.5 months of homes for sale (meaning all homes would sell in 2 – 3 weeks if no homes were listed 😯), interest rates were below 3% (practically free!) and of course COVID reminded us all, the value of owning a home. 🏡
Showings per home
In January 2022, the average North Tacoma home had 26 showings (buyer appointments to view the home). Now, we see 8 showings per home, on average. The number of qualified buyers has decreased three folds! Meaning, buyers have more time to view homes of interest and likely will not be competing with other offers. Home sellers will have 3x fewer showings; heightening the buyers expectation and standards. Proper preparation for your home is key to a successful home sale. The general rule of thumb still applies – for every 7 showings (of serious and qualified buyers) a home seller can expect to receive 1 offer.
Median Price in North Tacoma
How is the shift in our market affecting the price point of homes in our area? The median home price in Proctor is currently $680K. In January, the median home price was $677.5K. We have not seen a depreciation of home values in our area and don’t expect to. What we are seeing is homes taking 2 – 3 weeks longer to sell and homebuyers negotiating a credit or repairs for deficiencies discovered in the home inspection. 3 – 12 months ago, many winning offers were electing to waive their inspection or complete the repairs themselves once the home was theirs. So you see, the terms of the offers are changing because we aren’t seeing multiple offers. The value of our homes remains steadfast and will until there is a surplus of homes for sale, which we do not expect to change this year.
Sellers: Hiring a local and professional Realtor is extremely important to sell your home for top dollar. As we move through this market adjustments, your Realtor will point out items that are typically negotiated and get creative to creative win-win scenarios.
Buyers: You won’t have to compete against a dozen competing offers (what a relief!). That said, don’t expect to the seller to agree to a steep price reduction. Homes are still selling on average in 15 days in North Tacoma. Now is a great opportunity to find your next home, with (still!) lower interest rates. Investing in a home is a great way to hedge inflation.