Tacoma is swelling from Seattle’s real estate boom

Tacoma may have been considered as an alternative to Seattle’s tough real estate market in the past, but now it seems the Emerald City’s housing hub is radiating further south.

According to a recent Redfin report, home buyers are rapidly giving Tacoma more and more attention.

“In terms of market speed (median days on market), Tacoma has only just begun to catch up with Seattle in the past few months,” said Rachel Musiker with Redfin. “In terms of prices and competition, Seattle and Tacoma look a little more different from one another.”

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Seattle was listed among the most competitive markets in the United States in June with 62.3 percent of homes selling above the list price. But right behind Seattle on this list is Tacoma with 52.6 percent.

Tacoma is also following close behind Seattle when it comes to rapidly-rising home prices. Both Seattle and Tacoma are listed among the fastest growing prices, at 13.5 percent and 12.2 percent respectively, from June 2016 to June 2017.

Tacoma has historically trailed Seattle’s real estate trends. Redfin’s data going back to 2012 indicates that Seattle homes have stayed on the market for fewer days than Tacoma’s. In recent years, the number of days for Seattle have dipped down into the single digits. In June, for the first time, Tacoma joined Seattle in those single digits.

The City of Tacoma is well aware of this dynamic and has been preparing.

“I can’t compete with Goliath,” City Economic Development Director Ricardo Noguera told KIRO Radio in March. “It’s feeding off of the beast. Seattle-Bellevue is the beast.”

Noguera said Tacoma is more than happy riding Seattle’s economic coattails. The city is currently experiencing a building boom to accommodate the increase in population.

“You’re seeing more and more folks that are being priced-out of King County moving here and other folks who are empty nesters who are moving here from other parts of Pierce County and beyond,” Noguera said.

Seattle / Tacoma median days on the market 2016 – 2017 (to date)

• Jan 2016: 23 / 48
• Feb 2016 13 / 50
• March 2016: 8 / 30
• April 2016: 8 / 16
• May 2016: 7 / 13
• June 2016: 8 / 13
• July 2016: 8 / 14
• August 2016: 10 / 18
• September 2016: 12 / 19
• October 2016: 13 / 25
• November 2016: 15 / 32
• December 2016: 19 / 34
• January 2017: 27 / 39
• February 2017: 12 / 40
• March 2017: 8 / 23
• April 2017: 7 / 10
• May 2017: 7 / 10
• June 2017: 7 / 9

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