Washington home buyer demand is growing

Market Update - June 2023

Over this past week, there’s been a lot of speculation that there will soon be a plunge in home value like we saw in 2008; however, for that to happen we would need to see either home demand to pull back dramatically OR for available inventory to increase significantly.

And based on recent trends in the housing market, we’re just not seeing that in Pierce County, Washington. What we did find…

Key Takeaways

⚡️ Amount of homes going under contract jumped compared to how it’s been month-to-month. Going from 932 in April to 1134 in May.

⚡️ Average price per square foot increased from 292 in April to 295 in May.

⚡️ The average days a home is listed for decreased from 35 days to 30 days on average.

⚡️ Months of inventory have remained the same over this past month at 1.1 months of inventory

All of these factors illustrate a market with STRONG buyer demand; therefore, we do not see home value dropping anytime soon.

What we do believe is that if there is a correction in home prices, it will not lead to a crash like in the 2008 housing crisis. What’s important to know about what led to that event is that subprime loans were given to borrowers without verifying income OR acceptable down payments.

Now, with stronger underwriting standards for pre-approval for a home loan, that is no longer happening.

Homes For Sale VS Under Contract VS Sold

Avgerage Price Per SQFT

Average Days On Market

Sold Price/Original List Price

Months Of Inventory

Looking to get a market report in a specific city in Pierce County? We do market reports for Puyallup, Bonney Lake, Lake Tapps, Sumner, and Tacoma.