Pierce County Housing Market Update: What to Expect in 2025

As we begin 2025, the housing market across the country has experienced a slowdown, primarily due to higher mortgage rates. Let’s take a closer look at recent trends and what’s expected in Pierce County, including Tacoma, Puyallup, and Bonney Lake.

December 2024 Market Recap

Homes Took Longer to Sell

• In December 2024, homes in the U.S. stayed on the market for about 70 days—the slowest December in five years.

• This trend was also evident in Washington State, where homes took longer to sell, affecting local markets like Gig Harbor and Lakewood.

More Homes for Sale, But Fewer New Listings

• Active home listings in the U.S. grew by 22% compared to December 2023, marking the 14th consecutive month of inventory growth.

• However, new listings slowed down, leading to the lowest total number of homes for sale since June due to seasonal factors.

Home Prices Slightly Decreased

• The median listing price in the U.S. for December 2024 was $402,502, reflecting a 1.8% decrease compared to the previous year.

• However, the median price per square foot increased by 1.3%, indicating buyers are opting for smaller, more affordable homes.

• In Pierce County, price fluctuations varied across Tacoma, Spanaway, and Sumner, with some areas seeing a minor decline and others holding steady.

What to Expect in 2025

Home Sales Expected to Increase

• Existing home sales are projected to rise by 9% year-over-year.

• New home sales may see an 11% increase, providing more options for buyers in Puyallup, Orting, and Graham.

Mortgage Rates May Decline

• Mortgage rates are expected to gradually decrease over 2025, which could make homeownership more affordable.

• Lower rates may bring more buyers into the market, driving higher demand in key areas such as Bonney Lake and University Place.

Impact on Pierce County Homebuyers and Sellers

• Buyers: Lower interest rates may create more affordable financing options, but competition could increase as demand grows.

• Sellers: A steady market means it’s still a good time to list, especially in desirable neighborhoods with limited inventory.

Navigating the Pierce County Housing Market in 2025

Understanding these trends is key to making informed real estate decisions. Whether you’re looking to buy or sell, market shifts could impact home prices, mortgage rates, and overall affordability.

???? Have questions about what these trends mean for your home plans in 2025? Let’s chat! I’m here to help you navigate the Pierce County real estate market and make the best decision for you and your family.

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