Gig Harbor is now the priciest home market in Pierce County

The most expensive homes in Pierce County are right here in Gig Harbor.

The average home in Gig Harbor is now valued at $482,000, according to county assessor Mike Lonergan. If you include the surrounding area, it jumps to $546,000 — more than half a million dollars.

That’s the average. Top-end market prices are much higher, realtors say.

The real-estate site Zillow currently lists 35 Gig Harbor homes priced at more than $1 million — including a waterfront “carriage house” listed at an eye-popping $6.9 million. It sits on 7.5 acres overlooking Wollochet Bay, has a 100-foot deep-water dock and three helipads.

A little over your budget? There’s a nice six-acre waterfront property on Beach Lane Northwest that’s a steal at only $5 million.

Or, dropping into economy class, there’s a four-bedroom, two-bath bungalow on Kopachuck Drive for only $3.95 million.

In fact, on Zillow, you need to scroll down a dozen homes from the top to reach anything under $2 million in Gig Harbor. And under a million? Keep scrolling.

Eventually, you’ll come to the 4-bedroom, 5-bath concrete mansion on Foxglove Drive Northwest, listed at $995,500. It includes a “custom cigar room.”

Buyer angst

High prices and low inventory lead, inevitably, to angst among would-be home buyers.

Mark and Jill Wambold say they are looking for a home in the $700,000 to $1 million range. They currently live in Gig Harbor and are looking to upsize their house. They have not looked in any city but Gig Harbor.

“We are strictly looking in Gig Harbor, mostly for the schools and family lifestyle,” Wambold said. “The quality of schools, ease of shopping and all the services available make it a very desirable place to live.”

The problem is, a lot of other people have made that discovery, too, and they’re hanging onto their houses.

“There’s not a lot of inventory so it’s hard to find the perfect home,” said Wambold, who works for a mortage company.

Realtor Paul Elkins said Gig Harbor is an extremely fast-moving market with multiple offers on homes, especially under $500,000. Houses over that price are a bit more difficult to sell.

“Not as many people can qualify for those loans,” Elkins said.

The tight housing situation may have come about partially because Gig Harbor’s population is growing faster than its housing stock. The city’s population has more than tripled since 1990, going from 3,236 to more than 10,400 in 2018, according to U.S. Census surveys.

The biggest growth spurt came in 2016, when the population grew by 8 percent. Since then it has settled down to a steady 4 to 5 percent a year.

The development boom triggered a backlash in 2017, resulting in the election of a slow-growth slate to the City Council — and a six-month moratorium on new residential building permits.

That’s one of the factors that may have bumped prices higher. Gig Harbor homes rose in value by six percent compared to 2018. Overall, though, countywide prices roses faster, by 7.5 percent.

The upside

There’s a bright side, the county assessor notes: Gig Harbor also has the lowest tax rate in the county — $10.51 per thousand dollars value.

“A house will cost more in Gig Harbor, but the tax rate, as far as thinking about property taxes, is the lowest in the county, which is a plus,” Lonergan said. “You could have more house and better property while paying a lower rate of taxes than you do in other parts of the county.”

House value is determined by the size of homes, the quality of construction, along with miscellaneous things such as a waterfront property or views.

Property tax is determined by taking the 2019 values and multiplying them by the tax rate in various taxing entities, such cities, counties, school and fire districts.

Gig Harbor homes rose in value by six percent compared to 2018. Overall, countywide rose by 7.5 percent.

“Gig Harbor was a little bit below the average percentage increase,” Lonergan said.

The Gig Harbor Fire District, which encompasses an area slightly larger than the incorporated city, contains homes value higher than the average for Gig Harbor, lying at an average of $546,000.

In comparison, the average home value in Tacoma, even including the pricey North End, lies at $321,000. Tacoma’s tax rate is higher, at $12.96 per thousand dollars in value.

Look farther out

But there are still bargains on this side of the bridge, Lonergan said.

If you look at the Key Peninsula, he said, the average residence is $288,000, which is quite low. He said the tax rate is also modest there.

“For someone looking for a more affordable home they might consider looking to the Key Peninsula, as opposed to the Gig Harbor Peninsula,” Lonergan said. “There is a drastic difference in value there.”

In fact, the lowest price listed on Zillow was $138,000 for a single-wide manufactured home on an acre near Vaughn.

Elkins, the Gig Harbor realtor, said he found the county’s calculation of $482,000 as an average value a bit aggressive in his opinion, compared to what he’s seen on the ground.

“They used to value homes in a more conservative fashion, but now they are more optimistic on their pricing,” he said.

Elkins argued that Gig Harbor is still an affordable market, compared to the north end of Tacoma or University place.

To anyone who wants to purchase in Gig Harbor, Elkins recommends getting pre-qualified for a loan, connecting with a strong real estate broker and be ready to pounce when a home opens up.

For more information on property values, visit https://www.co.pierce.wa.us/91/Assessor---Treasurer.

This story was originally published August 28, 2019 at 12:00 AM.