If you’ve been watching the headlines, you might’ve seen stories claiming that home prices are starting to dip in some areas. And if that has you rethinking your homebuying plans in places like Tacoma, Auburn, or Des Moines, it’s completely understandable.
Yes, some major metros across the country have seen slight price adjustments. But it’s important to keep things in perspective: home values tend to rise over time. That’s been the case historically, even with short-term fluctuations.
Let’s not forget, the 2008 housing crash was a rare and unique situation. The factors behind that downturn—like loose lending practices and an oversupply of homes—aren’t present in today’s market. In fact, areas like Puyallup, Sumner, and Normandy Park have remained relatively stable, and many neighborhoods are still seeing gradual appreciation.
Understanding the Five-Year Rule
In real estate, there’s a concept known as the five-year rule. It suggests that if you plan to live in your home for at least five years, any short-term price dips are unlikely to affect you much. Home values typically recover and continue rising over that period. So whether you're thinking of buying in Burien, Lake Tapps, or Bonney Lake, know that time is usually on your side.
As Lance Lambert, Co-Founder of ResiClub, puts it:
“There’s the ‘five-year rule of thumb’ in real estate—which suggests that most buyers can buffer themselves from mild short-term declines if they plan to own a property for at least that amount of time.”
What’s Really Going On in the Market?
Here’s the truth: most markets are still experiencing price increases, just at a slower pace than the rapid spikes of previous years. Even in areas seeing slight softening—averaging around a modest 2.9% decline—that’s nowhere near the crash levels some might fear.
Plus, when you zoom out, the gains tell a different story. Over the last five years, U.S. home prices have increased by roughly 55%, according to the Federal Housing Finance Agency. And that trend is reflected in many local markets here in South King and Pierce County as well.
Even if your neighborhood saw a temporary dip this year, the long-term equity built by homeowners in Auburn, SeaTac, and surrounding cities has been substantial.
The Bottom Line for Buyers in Our Area
If you’re considering a move or purchase in cities like Tacoma, Puyallup, or Normandy Park, don’t let short-term headlines shake your confidence. Real estate is a long game, and those who stay in it usually come out ahead. The market isn’t crashing—it’s stabilizing after years of rapid growth.
And if you’re planning to stay in your next home for several years, you’re likely to build wealth as your equity grows.
Need guidance on buying or selling in this market? Let’s talk about your long-term goals and how we can make smart moves in today’s shifting market.
