House prices are falling in Tacoma. Check costs in your ZIP code with our interactive map
For the first time in over 10 years, the United States has witnessed a nationwide decrease in year-over-year median home prices, and Tacoma is following the trend.
A study from the National Association of Realtors found that the median price for all types of existing homes fell by 0.2% in February 2023 compared with February 2022 to a median price of $363,000.
The last time the U.S. saw a year-to-year decrease was from June 2011 to June 2012.
“Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines,” National Association of Realtors chief economist Lawrence Yun stated in a news release. “Moreover, we’re seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs.”
Pierce County is slightly ahead of the national curve in price decreases. ZIP codes including Tacoma, University Place, Gig Harbor and Puyallup have witnessed a 0.6% decrease in median home value over the past year.
But home prices for the same Tacoma-area ZIP codes remain well above the national average. As of February 2023, the median home value for the corresponding ZIP codes was $533,400 — that’s a $170,400, or 46.9%, increase.
Across the western U.S., home values have decreased on average by 5.6%. The same data also shows that existing-home sales have reduced across the west by 28.3% in the last year.
According to data from Zillow, ZIP code 98465 — which encompasses part of Tacoma — saw the most significant yearly decrease at 2.4%. The median price for the same ZIP code is now lower than the overall Tacoma-area average at $524,475.
ZIP code 98335 in Gig Harbor saw the largest increase in the area at 1.9%. The median price is $783,386, far above the national and Pierce County averages.
According to data from the National Association of Realtors, housing markets in the western U.S. are primarily responsible for the year-over-year decrease. Home values in the Midwest and South have increased over the past year, while houses in the Northeast and West have decreased.
Tacoma’s total number of homes sold were down over 30% this February compared to this same time last year, according to data from real-estate website Redfin.
This story was originally published March 23, 2023 at 5:00 AM.
