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.
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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.
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The last time the U.S. saw a year-to-year decrease was from June 2011 to June 2012.
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“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.”
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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