Photo: Paul Sableman/Flickr
The Seattle housing market has been on fire for over a year now, but an unlikely neighboring city is catching up: Tacoma. According to a new report from Redfin, Tacoma had the fifth highest price growth in the country in June at 12.2 percent. The city fell in right behind Seattle, which took the fourth place spot at 13.5 percent.
Tacoma has long been known as an industrial area with a big city feel and relatively affordable housing prices. But that all may be changing. Redfin found that the Tacoma area’s median home price has increased to $320,767, with 52.6 percent of all homes in the region going for above asking price. An average Tacoma home now stays on the market for only nine days before selling.
Nationally, a new Redfin record was set for homes that sold over asking price. According to the report, 26.6 percent of homes sold in June went for more than their asking price and the typical home found a buyer in 36 days.
The most competitive market in June was San Jose, California where 73.7 percent of homes sold above list price, followed by 70.6 percent in San Francisco, 69.8 percent in Oakland, 62.3 percent in Seattle, and 52.6 percent in Tacoma.
“This market is unlike any we’ve ever seen before,” said Redfin Chief Economist Nela Richardson. “Month after month, new records are set for the pace at which homes are going under contract. Demand continues to swell while supply troughs. For buyers competing in this market, it’s survival of the fittest. The strongest offers that are most likely to close quickly and smoothly rise to the top of the pile.”
As demand for housing in Seattle continues to outpace supply, more people will be seeking a place to live in Tacoma.