And although several metros are falling behind in the slump, data from Redfin indicates one housing market is especially thriving.
According to a recent analysis from the company, Tacoma, Washington, is the nation’s hottest housing market this spring.
In this metro, home-sale prices have risen 6% from the previous year, reaching $370,000 in mid-May. Additionally, sales have fallen 5.5% as inventory declines a whopping 12.5%.
“The Tacoma metro topped the charts in mid-May, when 50.2% of recently sold homes went under contract within two weeks – a higher share than any other metro – with the typical home finding a buyer in just eight days, the shortest median time on market nationwide,” Redfin writes. “What’s more, Tacoma was left with just 1.3 months of supply – less than any other metro – as of the first week of May.”
Notably, Redfin revealed that in the four weeks ending May 19, 47.7% of homes sold in Tacoma were bought for above asking price.
This percentage sits only behind the three most expensive metros in the nation, which are San Francisco, Oakland and San Jose. In these pricey housing markets, homes sold above asking price at a rate of 66.7%, 58.7% and 54.5%, respectively.
Redfin claims Tacoma’s homebuyer interest is largely attributed to the lack of affordable housing in Seattle, where the median sale price surged to $595,000 in mid-May.
“Ordinary homebuyers have gotten fed up with home prices in Seattle, largely because most people aren’t able to compete with highly paid tech workers and executives at companies like Amazon,” Redfin agent Ellen Campion said. “A lot of buyers are turning to Tacoma. I’m seeing an increase in bidding wars compared to the end of last year and a rise in homes selling for above the asking price, particularly for homes that are ready to move into right away.”
Redfin agent Ashley Sprecher said that with so many new homebuyers, Tacoma is positioning itself as a cultural hub.
“In addition to offering more affordable housing options, Tacoma is becoming a vital city in its own right," Sprecher said. "Some of the neighborhoods, like Old Town, Proctor District and the West End are becoming revitalized, and they’re great for families looking for walkability. My husband and I live in Auburn, about 15 miles away, and we always go to downtown Tacoma for dates because it hosts events like concerts, farmers’ markets and food festivals.”
NOTE: Redfin utilizes data for the four weeks ending on May 19, 2019, with the year over year change representing the corresponding time period from a year ago.