‘Average’ home in Gig Harbor is now worth more than half a million dollars

The average home in Gig Harbor is now worth more than half a million dollars, the county assessor says.

That’s right: the average home.

Gig Harbor has the highest assessed average home value in Pierce County at $534,000, according to Pierce County Assessor-Treasurer Mike Lonergan. That’s a 9.3 percent increase from last year.

The real-estate site Zillow currently lists 35 homes in Gig Harbor valued over $1 million. The most expensive, on the market at $3,395,000, is a four-bedroom four-bathroom house with waterfront view on Goodman Drive.

The assessor’s valuations are based on the value of property as of January 1, before the coronavirus pandemic.

On the flip side of the coin, Gig Harbor’s tax rate is $10.08 per thousand-dollar value, the second lowest in the county.

“The issue is, people in the Peninsula are still paying a lot for taxes because of their values being so high,” Lonergan said. That mansion on Goodman Drive would have a tax bill of about $34,221.

Size, quality, location

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

Property tax is determined by taking the 2020 values and multiplying them by the tax rate in various taxing entities, such cities, counties, school and fire districts.

Lonergan added if someone had a modest house, they would be paying low taxes, which is the case for many Key Peninsula residents.

Paige Schulte, a Windermere realtor, said when she looks at the market she separates Gig Harbor from the Key Peninsula, as the price points are on opposite ends of the spectrum

“You can get under $300,000 over on the Key Peninsula,” Schulte said.

Lonergan said the housing market of the Peninsula School District gives a better picture of both Gig Harbor and Key Peninsula together. According to 2020 residential revaluation report, the average assessed value of the PSD school district is $501,975. This is still the highest average value in the county, with University Place School District coming in second at $448,232.

Better value for money

Schulte said when comparing Gig Harbor to a similar-priced housing market like Seattle, the local market gives the better value for money.

“You still have that support local community vibe people can rally around,” Schulte said. “You can create a community here. There are gorgeous views, and a lot of the commuters will get the big yard, the nice schools.”

Schulte said it is currently a seller’s market at every single price point.

“You get so much for your money. It’s not cheaper to live here, but you get more,” Schulte said. “COVID has made people want a home office, a yard, a gym, more space. Families are starting to say they can go a little bit further; they can widen their search.”

Lonergan added that if someone thinks their home has been overvalued, they have until late August to appeal to the Pierce County Board of Equalization.

“It doesn’t cost anything, and then they have to do a little homework and look up what similar houses are listed for,” Lonergan said.

Trend across the county

While Gig Harbor is the leader, homes have increased in value this year all across Pierce County, up to 10.8 percent, the assessor said.

On average, residential properties have gone up by 8.8 percent for 2020, or 1.3 percent more than last year, Lonergan said.

These are the highest assessed values in Pierce County history, with 93 percent of residential properties having increased in value, he said. Fueling the trend are hundreds of buyers priced out of Seattle and King County who have turned south for affordable housing.

The increase in Tacoma at 9.2 percent was slightly higher than the county average. It brought the average home to $381,000

Orting saw the greatest percentage increase from year to year with 10.8 percent, Lonergan said. There, the new average value of a home is $323,000. Roy saw lowest annual increase of 6 percent. An average Roy home value is estimated at $262,000.

The low end of the market is stronger than anticipated. Mobile homes saw some of the largest jumps, Lonergan said.

“Our depreciation tables were under-valuing most mobile homes by an average of 25%,” he said. “The demand for affordable housing has pushed resale prices for manufactured housing higher.”

Josephine Peterson of the News Tribune contributed to this story

The most expensive homes on the market in Gig Harbor, according to Zillow:

▪ $3.3 million, 8412 Goodman Dr. NW

▪ $2.7 million, 6424 Cromwell Beach Dr. NW

▪ $2.5 million 2129 50th Ave. NW

▪ $2.35 million 13020 Thomas Rd. NW

▪ $2 million 8808 Randall Dr. NW

▪ $1.99 million 9002 Randall Dr. NW

▪ $1.95 million 4023 Forest Beach Dr. NW

This story was originally published July 8, 2020 at 12:00 AM.