Tacoma, WA Housing Market Study: What Sold Houses Quickly in 2018?
As an agent, it's important to know the local market, which includes market trends, predictions, and the most effective practices for purchasing and selling homes. With that said, one thing that I wanted to do was to study the market statistics and the numbers on homes that lasted 10 days or less on the market in 2018 in all South Tacoma. I took into consideration the purchase price, the number of bedrooms and bathrooms, and the size of the homes. I ran a variation of different numbers in each category and found some interesting statistics. Below are the most significant takeaways from my study.
1. Lower Asking Prices = Higher Purchase Price (Usually): This isn't ALWAYS the case, but numbers showed that it was true in 2018 for the most part. Of the homes in what is considered South Tacoma that were sold in 2018 in 10 days or less, 15% and 42% were listed for less than $200,000 and between $200,000 and $250,000 respectively. However, homes that had a SALE price for less than $200,000 dropped down to 10% while the number of homes sold between $200,000 and $250,000 dropped from 42% of the listings to 33% of the sales. Homes listed between $250,000 to $300,000 accounted for just 30%. However, when the homes sold it jumped to 39% in this category! In fact, there was a 13% jump from the number of homes listed over $250,000 to the number of homes sold for that amount.
So what does this mean for you, the seller? This means that when a Realtor suggests a listing price that is lower than your initial expectations, you should not take in personally. If you want your home sold quicker AND for more money, then history shows that you should consider placing your asking price for a lower number than what your goal is.
2. 3 Bedroom homes are still king: Of course, when everyone thinks of the typical home to purchase, the first thing that pops in their head is "3 Bedrooms, 2 Bathrooms" and according to the data, 3 bedroom homes are by far the most popular number of bedrooms in a home. In fact, 53% of homes that lasted 10 days or less on the market in 2018 had 3 bedrooms. However, please do not let that discourage you if you have 1, 2, 4, or more bedrooms in your home! A proper marketing plan from your agent is extremely important when it comes to your selling your home. 47% of homes that lasted 10 days or less on the market did not have the typical 3 bedrooms, so it is still very much possible to get away without having that specific feature!
3. 2 Bathrooms are not king: Move over 2 bathroom homes, 1 bathroom homes are in style in Tacoma! I'm not sure if it's because there are a number of older homes that have a 1 bathroom layout, or if it's because 1 bathroom homes are slightly more affordable. No matter the case, 49.4% of homes sold in Tacoma in under 10 days had just one bathroom. As a matter of fact, there were more homes that had 1.75 bathrooms (basically a .75 bath is one with just a shower and no tub), than those that had a full 2 bedrooms. Now, this isn't to say that 2 bathroom homes are less desirable, it's just simply an observation. If anything, I think this study should give MORE homeowners optimism when it comes to selling their homes since it proves that 2 bedrooms is not, in fact, a deal breaker for a buyer!
In summary, this study was very interesting to look at the data to see market trends, what kind of homes were desirable, and to gauge different aspects of the market for both buyers and sellers. This data obviously helps sellers understand that those with 1 bathroom homes may want to lower their listing price another $5,000-$10,000 to maximize their sale price. It also helps buyers understand how the home they're buying will do on the market whenever they decide to sell in the future. Investors can take this data as well to make decisions on what kind of investments they should focus on and target and which ones they should trend away from. It's always good to look at hard data going forward so that we can get a better understanding of what is really going on. Using data to interpret the market and come up with an analysis is a useful tool that I can offer my clients moving forward. Now I can refer to numbers when I make suggestions rather than relying on the idea that I'm a "professional" or an "expert." This helps verify my findings, conclusions, and suggestions in the future.
If you'd like to know more about my studies, please feel free to contact me! And of course, if you're looking to buy or sell, I am always here to help!