Tacoma Home Price Forecast for 2015: More Growth in Store?
The experts have spoken. Economists and housing analysts seem to agree that home prices will rise more slowly in 2015 when compared to 2016. This is the national forecast, and the same kind of prediction has been offered for cities and metro areas across the country.
But Tacoma, Washington might be a different story. According to one team of economists, home prices in Tacoma could rise as much over the next year as they did in the last 12 months — or even more.
Here’s an updated look at the Tacoma real estate market in 2015, with an emphasis on home price forecasts and projections.
Tacoma Home Price Forecasts Suggest More of the Same
According to the real estate information service Zillow, home prices in the Tacoma area rose by 5% over the last 12 months. This is according to their proprietary “Zestimate” formula for house values. Their home price forecast for the next 12 months calls for a gain of 5.2%.
According to the company’s economists, “The median home value in Tacoma is $191,800 [as of March 2015]. Values have gone up 5.0% over the past year and Zillow predicts they will rise 5.2% within the next year.”
Within the Tacoma real estate market, and all across Pierce County, home prices are inching upward due to strong demand and limited supply. This trend is particularly noticeable when you look at median house prices. According to the Northwest Multiple Listing Service (MLS), the median home value in Tacoma rose 9.76% in 2014. Granted, appreciation has slowed a bit since then, but it’s still on an upward trajectory.
According to MLS data, the total number of homes listed for sale in Pierce County dropped by more than 7% from February 2014 to February 2015. This means buyers have fewer properties to choose from when making a purchase, compared to last year.
Dick Beeson, a Tacoma real estate broker and member of the Northwest MLS board of directors, says that sellers who are planning a local move are concerned about finding another home. “Sellers are frustrated because they can’t find replacement homes,” Beeson said. “Some won’t list their homes because of fear of not finding a suitable replacement.”
But, as he adds, the situation could soon change: “This cycle will work its way out as spring brings more inventory, hopefully, and sellers give in and … trust there will be a home for them somewhere.”
In many ways, current housing conditions are ideal for selling a home. The economy has improved, the local unemployment rate has dropped, and more people are in the market to buy a house. But we don’t know what the market will be like six or twelve months from now. With prices continuing to rise, smart sellers (particularly those trading up) realize this is a good time to sell.
Getting back to the Tacoma home price forecast, how does all of this translate into future pricing trends? While no one can predict the future, there is one thing experts agree on. The current supply-and-demand situation within Tacoma’s real estate market is putting upward pressure on home prices — and that will likely continue for the foreseeable future.
Disclaimer: This article contains home price forecasts for Tacoma, Washington in 2015 – 2016. These forward-looking statements were provided by third parties not affiliated with this website. Their views and opinions do not necessarily reflect the views of the publisher.