Tacoma, WA Housing Market Report

The Tacoma real estate market is currently undergoing a significant transition toward more balanced conditions, offering a notable shift from the hyper-competitive environment of previous years. As of December 2025, the median home value stands at $478,988, reflecting a slight year-over-year decline of 1.11%. However, the most striking data point is the 24.06% surge in active inventory, with 6,857 homes currently available. This increase in supply, coupled with homes spending an average of 67 days on the market—15 days longer than last year—indicates that buyers now have more leverage and selection than they have had in recent memory.

Despite the minor annual dip, a closer look at the last six months reveals a steady recovery in pricing. After hitting a low point in August 2025 at $474,123, home values have climbed for four consecutive months, ending the year on an upward trajectory. This suggests that while the market corrected itself in early 2025, demand remains resilient within the Seattle-Tacoma-Bellevue metro area. The sale-to-list ratio remains at a perfect 1, meaning that while buyers have more time to browse, sellers are still generally receiving their full asking price, provided the home is priced accurately for the current climate.

Looking ahead, the Tacoma market presents a unique window of opportunity for both parties. For buyers, the combination of increased inventory and longer cooling-off periods reduces the pressure of bidding wars. For sellers, the rental market remains a strong alternative or supplement to selling, as median rents have risen 3.57% year-over-year to $1,749. As we move into 2026, the market appears to be stabilizing. Prospective participants should focus on local inventory levels and interest rate movements, as the steady price growth seen in the final quarter of 2025 suggests that the period of price depreciation may be coming to an end.