Cross posted at ActiveRain

It has been amazing to watch the transformation of downtown Tacoma and neighboring Hilltop, so named because it is perched on a bluff overlooking downtown, Commencement Bay and Mt. Rainier. I remember seeing Hilltop on the show Cops in Tacoma at a time when there was a proliferation of gang activity and crime.

A lot has changed. Wikipedia has this to say: "Since the mid-1990s, neighborhood watch efforts, increased police presence, commercial real estate development efforts along Martin Luther King Way, and rising real estate values in all areas adjoining downtown Tacoma have served to lower the amount of crime in Hilltop". What has happened is a renaissance of that area. There are new restaurants and businesses, a light rail line with expansion plans and museums. The University of Washington Tacoma campus has been expanding since its inception.

One of my clients, The Gintz Group, a real estate developer, is headquartered in downtown Tacoma in the Mecca, a building that was once an adult movie house, but which they have since renovated beautifully into a mix of office and residential use. They are currently developing a site at the corner of 23rd and Martin Luther King Way. Here they partnered with Ivory and Eric Crittendon in a planned mixed-use redevelopment of a former brownfield site. The site was a gas station in the 1940s and 50s before housing Ivory's Auto Rebuild. The first phase of the redevelopment plan is well under way with the excavation of storage tanks and soil remediation to be completed this week. This will clear the way for a 6 story mid-rise building that will house high-end apartments and commercial / retail space.

And just down the street is a project I am representing for sale: 27th Street Station Condominiums. Despite the economic downturn, 27th Street Station has sold 17 units since opening in April and is the fastest selling condo in Tacoma. Dave Gintz says the success is attributable to deluxe finishes, low prices starting at $124,990, with monthly payments of about $1,000. You can get a condo at the Station with a view of Mount Rainier for less than rent, particularly now with historically low interest rates. Forgive me touting my listing here, but I'm just very excited about the project and the area generally.

More Nums

__________________Pending_____Active_____Sales Ratio
Overall____________143_________622________23.0%
Sub $200K__________51__________95________53.7%
$200-$300K_________43_________249________29.1%
$300-$400K_________20_________150________11.7%
$400-$500K__________7__________72________18.5%
$500-$600K__________2__________52_________4.5%
$600-$700K__________7__________26_________8.3%
$700-$800K__________0__________21________11.8%
$800-$1m____________0__________24_________5.9%
Over $1m____________0__________22_________4.2%

It's official. The under $200,000 market in Tacoma, Fircrest and University Place is not a Buyer's Market any longer!! It is balanced and trending "Seller's". Even the $200,000 to $300,000 range is showing much improvement.

I was really hoping for the $15,000 tax credit for first time home buyers to survive negotiation between the house and senate regarding the stimulus package, but it would appear we are getting something less... probably $7,500. Depending on how this looks in the final bill signed by President Obama, it could have an impact on these numbers. I promise to write about something other than sales ratios soon. I'm just focussed on the ailing market's recovery. I'm encouraged by the entry level price range and hopeful it will trickle up!