Looking at the flow of listings in Tacoma for the month of October, the first thought that comes to mind is this: while the number of homes has increased, the number of buyers has not kept pace.

Let's start with the numbers. The Northwest MLS released the September county recap at the beginning of October, which is the most recent official data available, and the October closing figures have yet to be announced, so we will cover that next month.

In September, there were 3,269 active listings for single-family homes and condos in Pierce County. This is a 21.57% increase compared to 2,689 listings in September of last year.

On the other hand, pending contracts stood at 960, down 15.12% from last year. Actual closings also decreased to 862, an 8.98% drop.

However, the median sale price actually rose to $575,000, up 2.68% from $560,000 in the same month last year. This illustrates the current market situation in the area: inventory is piling up, but prices are not dropping.

The months of inventory stood at 3.79 months. Typically, as this number increases, buyers have more time to choose, indicating a shift in the market.

The reason prices are holding steady is likely due to the changing composition of homes being sold. Well-maintained homes in good locations are still selling at their asking prices, while homes needing significant repairs tend to linger on the market, either reducing their prices or not being recorded in sales statistics at all.

Even within Tacoma, the experience can vary significantly depending on the area. Neighborhoods with preferred school districts, like North End or Proctor, still see a lot of showings.

Conversely, as you head south, you'll notice more price-adjusted listings. This is why I recommend not just judging based on listing photos but actually taking a walk around the area.

Looking at the city of Tacoma as a whole, Zillow's housing value index for June was $498,063, which is down 0.4% from a year ago. This shows a slight decline in the city's value index while the county's transaction prices have risen, so it's important to consider that the measurement methods differ.

The rental market is quieter. Honestly, there are no official statistics for Tacoma rent as of October, so we have to rely on private estimates.

RentCafe's July update reported the average rent for Tacoma apartments at $1,788, a 2.01% increase from the previous year. Apartment List estimated the median rent in April at $1,664, up 0.6% year-over-year.

The numbers vary by source, but the trend is similar: rents are neither rising sharply nor falling significantly, indicating a stable market.

On the ground, many new apartment buildings are offering incentives like a month of free rent or discounts on management fees. While the listed rent remains the same, the actual burden has decreased, so be sure to ask about these conditions before signing a lease.

There is also a state-level cap on rent increases. The Washington State Department of Commerce has set the annual increase cap for 2026 at 9.683%, and the cap for 2027, which will apply from January to December, has been announced at 10%.

The cap is determined as the lower of 7% plus the Seattle area consumer price index increase or 10%. There are exceptions for new buildings, so it's best to check if your property falls under this on the Department of Commerce HB 1217 information page.

Tacoma also has its own regulations to consider. An ordinance passed by the city council last December went into effect this January, adjusting the winter eviction moratorium period to run from November 15 to March 15.

Previously, it was from November 1 to April 1, so the period has been shortened. This winter will be the first time the new period is applied, so it's advisable for both tenants and landlords to double-check the dates.

The biggest issue this month is, of course, today's election. The citizen initiative SAFE Homes for All, aimed at strengthening tenant protections, is on the ballot for Tacoma on November 3.

The proponents submitted over 8,700 signatures to the city clerk, and after verification by the county, it was placed on the ballot. The core of the initiative is to allow the city to enforce against violating landlords without tenants having to file lawsuits themselves.

Reportedly, the plan includes a phased introduction of a rental licensing system, with fines for violations ranging from $500 to five times the monthly rent. The enforcement costs will be covered by registration fees per unit, but I couldn't find the exact amount in the materials I reviewed.

Landlord organizations, such as the Washington State Rental Housing Association, oppose this initiative, and it has been reported that a major real estate investment firm in Seattle donated $175,000 to the opposition campaign. The results will become clearer as the counting progresses.

Personally, I understand the intent behind enforcing existing regulations. However, I think it's important to monitor how much the registration fees and administrative burdens will affect small landlords with just one or two units, regardless of the outcome.

So what should you do now? If you're looking to buy a home, now that inventory has increased, it's a good time to test your negotiating power.

Focus on homes that have been on the market for a while or those that have had their prices reduced, and consider asking for seller credits or a rate buy-down. The fact that pending sales dropped over 15% in September signals that sellers are becoming anxious.

If you're looking to sell, it's crucial to set a realistic price from the start. In a market with 3.8 months of inventory, an overly ambitious initial price will only waste time.

For those considering rental investments, keep in mind that the election results could change your operating cost calculations. Be sure to factor in the state cap of 10%, the city eviction moratorium period, and any potential registration fees when recalculating your returns.

If it were me, I would choose to wait and observe the inventory this winter rather than rush into anything. I will provide an update as soon as the October MLS figures and election results are available in the next briefing.