Gig Harbor Real Estate Looking back at 24, thinking ahead to 25

The Gig Harbor housing market exhibited remarkable resilience in 2024, with median home prices climbing 5. 8% since December 2023, surpassing the previous peak of 2022 by 4%. This upward trend is particularly significant, as home prices have increased by 52. 4% since December 2019, the last month before the pandemic's upheaval. Despite this price growth, home sales have remained below average for three years, largely due to elevated mortgage rates that discourage homeowners from selling.

According to the Federal Housing Finance Agency, homeowners are 18. 1% less likely to sell for every percentage point increase in mortgage rates, which may hinder recovery in sales volume unless rates decline significantly. Inventory levels are critically low, dropping to just 1. 2 months by December 2024, which intensifies competition among buyers. The lack of new construction further constrains supply, with only seven new homes recorded at the year's end, the lowest since 2012.

Looking ahead to 2025, the market remains at a crossroads, with potential shifts in buyer sentiment and economic conditions likely to influence home prices. As such, the delicate balance of supply and demand in this seller's market will be crucial in shaping the future of the Gig Harbor real estate landscape.