Gig Harbor Real Estate Market | Rising Prices, Surging Demand, and Shifting Mindsets

Nestled between the Purdy Bridge and the Narrows Bridge, including the serene Fox Island, the Gig Harbor real estate market is proving its resilience yet again. After four months of price stagnation, January ushered in a fresh wave of growth. The median price for a single-family home climbed 1.8% from December, reaching an all-time high of $915,000—a 7.6% increase compared to January 2024.

A Market Awakening: New Listings and Eager Buyers

The start of the year is often a period of recalibration for the housing market. New listings surged in January, more than doubling from December’s numbers. Yet, with increased inventory came a wave of determined buyers, snapping up properties as soon as they hit the market.

A deep dive into the data reveals an interesting dynamic: while 63 homes were listed, 46 went under contract in the same month. This underscores an important reality—spring is not the only prime selling season. The first few months of the year present a golden opportunity for sellers, as buyers who paused their searches over the holidays return with renewed urgency.

Speeding Up: Homes Selling Faster Than Before

January 2025 also marked a four-year high in closed sales. These sales, initiated in December, further confirm the intense demand among buyers. Another revealing metric is the median days on the market:

• January 2025: Homes sold in 19 days
• January 2024: 39 days
• January 2023: 49 days

This steady decline showcases buyers' increasing willingness to act fast, further tilting the market in favor of sellers.

Lessons from the Past: Market Trends and Stability

Gig Harbor home prices have only seen one notable dip in recent years—from late 2022 to mid-2023, a period marked by skyrocketing mortgage rates. As rates neared 7%, many buyers hit pause. However, those who took the leap during that downturn have since reaped the rewards, benefiting from a 10% appreciation in home values. Today, mortgage rates remain around 7%, yet home prices continue their steady climb.

For those anticipating a market cooldown, the data suggests otherwise. A combination of limited new construction and homeowners clinging to their low mortgage rates (often below 3.5%) makes a significant price drop highly unlikely—assuming economic stability persists.

The Shift in Homeowner Mindsets

Beyond statistics, there’s a subtle but powerful shift occurring among homeowners. One recent client shared her evolving perspective: though she initially hesitated to sell due to her low mortgage rate, she now prioritizes quality of life over financial considerations. She is choosing to downsize to a home that better suits her lifestyle, even if it means a higher rate but a similar monthly payment. This shift suggests a growing trend—more sellers may prioritize lifestyle over financial incentives in the near future.

Looking Ahead: A Market Poised for Growth

As inventory increases, the Gig Harbor real estate market still overwhelmingly favors sellers. Demand remains strong, and as more homeowners reconsider their living situations, new opportunities will emerge for both buyers and sellers alike.

For those waiting for prices to fall—the data tells a different story. Gig Harbor’s market is resilient, competitive, and steadily growing, making now a compelling time to make a move.