Tacoma Real Estate Market

The Widening Mortgage Crisis and Economic Downturn

noreply@blogger.com (Dan Hall) — Fri, 25 Apr 2008 04:28:00 +0000

There is increasing bad news on the homefront. According to an interesting website The Mortgage Lender and its Impode-o-Meter, there has been 253 Mortgage companies have "imploded" since 2006. I stumbled across this website from a comment posted by John on the Tacoma News-Tribune Real Estate Blog .

Scarily enough, Yale University economist Robert Shiller, admittedly bearish and known for the S&P Case-Shiller home price index, said this week that U.S. housing prices could fall farther than they did during the Great Depression. At that time, prices decreased by 30 percent.

Can you even image a 30% percent plus price decrease? I think we are seeing a widening economic crisis, we have been watching a continue increase in food, crops, gas, and metal prices, you name it.

It will be interesting times, China is increasing it's reach in search for natural resources. They are heavily invested in countries such as Sudan, Myanmar, and Congo. China's steel imports have tripled since 2002 from places like Australia. Mr. Kevin Rudd, the new Aussie PM, is fluent in Chinese. With China holding on to over a trillion (yes a trillion) dollars in reserve, they hold an immense power over the U.S.

Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.
It would also cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession. It is estimated that China holds over $900bn in a mix of US bonds.

Xia Bin, finance chief at the Development Research Centre (which has cabinet rank), kicked off what now appears to be government policy with a comment last week that Beijing's foreign reserves should be used as a "bargaining chip" in talks with the US.

There is now a growing food crisis as well but that is for another day.

More Tacoma Condo Maps at King5.com

noreply@blogger.com (Dan Hall) — Wed, 16 Apr 2008 02:21:00 +0000

I ran across another Tacoma Condo Map at King5.com when I was analyzing the sites that are linking to Tacoma Real Estate Market. It is an interesting exercise in the way the web works, sites link to yours that you never even heard of, let alone visited. A large portion of them are spam sites, but even spam sites can have their uses, if you can get past all the pop-ups that is.

This particular site listing was sitting right below a link to my Tacoma Real Estate blog, and since it had a the magical words "Tacoma Condo Map." I decided to check it out.

It is very similar to the Tacoma Condo Map listed at Exit133.com , although highly out of date considering that defunct Tacoma Condo Projects are listed like Chelsea Heights, Hanna Heights, and Old City Hall Condos.

Looks like it was created by a site called Mapbuilder.net , I will have to check it out some day and maybe keep an updated Tacoma Condo Map.

Home Sales Drop and Current Real Estate Market Trends

noreply@blogger.com (Dan Hall) — Sat, 05 Apr 2008 03:16:00 +0000

In Pierce County and Tacoma, sales are showing a modest upward trend so far this year when compared to the winter months (which is cyclical and quite a normal trend). Pierce County reported a 30 percent drop compared to the year before. Not only are sales continuing to drop, Pierce county registered a 5.5 percent Home Price dip as compared to March a year ago.

Real Estate Market Trends made both Seattle Newspapers today:

See the Seattle Times article here: Home prices declining, inventory building around Puget Sound

Seattle PI: Seattle single-family homes prices stay steady in March

Check out the vastly differing titles and article content.

Real Estate experts still are claiming the end is near: The local market "has reached bottom -- or pretty darn close" and although inventory continues to grow, so does optimism among buyers, Northwest MLS director Dick Beeson said in a statement.

I think that this is hopeful at best. Add in the difficulty of getting a mortgage plus the recent economic development, you get a bleak outlook for a quick turnaround.

"It's no longer a question of recession or not. Now it's how deep and how long. Workers' pink slips stacked ever higher in March as jittery employers slashed 80,000 jobs, the most in five years, and the national unemployment rate climbed to 5.1 percent. Job losses are nearing the staggering level of a quarter-million this year in just three months. "

Check out the rest of the news in this recent AP Economics article: Huge job losses set off recession alarms.

Another Way to Look at Tacoma Condos

noreply@blogger.com (Dan Hall) — Tue, 01 Apr 2008 03:56:00 +0000

I have stumbled across Condo Compare a couple of times and feel that it has some merit in terms of a tool to compare Tacoma Condos across neighborhoods. What I really like about the site is that it gives you an idea of the total number of units for sale, not only for that particular Tacoma Condo Project, but for the condo inventory citywide. Although, to be honest, I am not sure how up to date their information is, I will do some research and report back to you on that.

Check out their website: http://www.condocompare.com/WA/Pierce/Tacoma/condo_search.aspx

There are a lot of condos out there. I don't recommend buying a Tacoma condo as an investment, there is too much inventory and the prices are too high. However, if you were in the market for a condo, this will give you some ammunition when it comes to the negotiating table (although the market is definitely in your favor, especially when it comes to Tacoma Condos).

Tacoma Condo Map

noreply@blogger.com (Dan Hall) — Sun, 30 Mar 2008 05:36:00 +0000

A couple of years ago, I started reading Exit 133, a local Tacoma blog that is about Tacoma. It's about Real Estate, Politics, the Arts, Urban Development, and the interests of Tacoma readers. Of course, I was interested in the Tacoma Real Estate Market.

One of the more interesting posts, I remeber, was a Google map superimposed with new Tacoma condo developments. You can see the original overlay here. They had a scant pickup of interest and some revision in late 2006 as seen here.

I think it would be fascinating to take this idea and create a heat chart (ala Tulia) and utilize some of the functionality seen on the Tacoma Condo Map, not only detailing locations and websites, but also days on the market, and sales prices.

Who knows maybe we could inject a little life in the Tacoma condo market and get some of these stale units moving and reduce the Tacoma condo inventory. Even if it means a loss for the developers.

Who's with me? Anyone? Anyone?

Home Prices Plunge a Record Breaking 8.2%

noreply@blogger.com (Dan Hall) — Wed, 26 Mar 2008 04:13:00 +0000

The National Association of Realtors recently reported the median price of homes sold during the month fell 8.2% to $195,900 from $213,500 a year earlier - the largest year-over-year price drop on record. Before the start of the current housing slump, it had been 11 years since prices declined, when compared with the same period a year earlier. Read the full artice at CNNMoney.com.

Although home sales rose modestly nationwide, home sales still declined in the Western region of the United States. The NAR and housing experts still try to paint a hopeful picture, but as lending practices tighten and foreclosures increase along with rising gas and food prices combined with a weak dollar, I think we haven't seen the worst of it yet. Hold on to your hats, we are in for a bumpy ride.

Thinking about Buying a Condo in Tacoma?

noreply@blogger.com (Dan Hall) — Mon, 24 Mar 2008 03:10:00 +0000

I wrote a post in 2006 talking about Tacoma Condos. I said it then and I will say it now, don' buy a condo in Tacoma as an investement. There are over 300 two and three bed condos on the market right now in Tacoma. The average listing price is hovering at $305k. There were just over 160 condos in this category sold in Tacoma in the past twelve months. That is close to a two year supply, and guess what developers are still building them. Prium has gotten smart and are turning both Chelsea and Hanna Heights into apartments. Not sure how much the rents will be but they will have a hard time breaking even. Prium had not sold one single unit in Hanna Heights despite upgrading the countertops and other amenities. The Jay Heights project has been put on an indefinate hold and there is plenty of developable land on the market.

You also need be to aware of the high risk of construction defect litigation, home owner dues, and poorly managed home owner associations. All of these factors, an individual condo owner does not have much control over, and it usually amounts to higher HOA dues, which creates a huge monthly cost penalty for owning a condo.

The mediam sales price for homes in North Tacoma are $289,000 and have decreased over 7% for the year. If you are looking to buy, don't buy a condo in Tacoma, they aren't good investments. If you love the lifestyle, I would recommend renting one of these recent downtown Tacoma condo projects turned apartments and wait for things to settle out. Zero lot line Townhomes are always an option, at least you won't have to deal with HOAs and HODs.

Tacoma Real Estate Market Listings Soar, Prices Drop

noreply@blogger.com (Dan Hall) — Sun, 23 Mar 2008 03:53:00 +0000

The number of listings in the Tacoma Real Estate Market has ballooned to over 2600 in the MLS. There were 250 SFH Listings on the Tacom Real Estate Market in May of 2006, that is over a 1000% increase since I started tracking inventory on my own.

Prices have dropped close to 10% from last year. Sales are down 25% from a number that already saw the inventory outstripping the demand. Mortgages are harder to get. Washington
was deemed a "soft" market making mortgage insurance companies shut off 100% financing.

Have you tried getting a non-owner occupied loan with a LTV for more than 80%? They basically don't exist, taking another segment of the buyer population out of the picture. Even if prices keep dropping, many Americans don't have the savings to put 20% down.

One disconcerting factor that has gotten some media attention but has not been internalized by many in the Real Estate market today is demographics, good old demographics.

There are 78 million baby boomers approaching retirement fast, with the upper limits already making the transition. Their typical real estate life cycle involved trading upwards for bigger and bigger home ala the McMansion in the suburbs. The problem is that many Gen X'ers even in places like Tacoma, myself include, do not want a sprawling house in the suburbs with the awful commute. What will be done with these homes in the current Real Estate Market crisis?

Time will only tell....

The Subprime Crisis and Widespread Corporate Fraud

noreply@blogger.com (Dan Hall) — Sat, 22 Mar 2008 04:45:00 +0000

There are many causes for the current subprime (and prime) mortgage crisis. One such cause that is coming more to the forefront is the widespread corporate fraud that exists (possibly existed, they have tightened up quite a bit) in the mortgage industry. The FBI is investigated 17 mortgage firms accused of Fraud.

If you have any doubt that things will be supressed for the forseeble future, check out this article in the New York Times. One factor in the real estate boom was the type of loans that were being written, standards are being tightened dramatically so this factor will likely not contribute to a rebound in the future.

Subprime Crisis Nightmares and Mortgage Problems

noreply@blogger.com (Dan Hall) — Fri, 21 Mar 2008 04:28:00 +0000

I have seen it all myself and this article attests to the trapping and lies that have befallen many in the current real estate crisis.

http://money.cnn.com/2008/03/19/real_estate/borrowers_cruz/index.htm

There are a couple of things that you should always keep in mind when shopping around for a mortgage whether it is a refinance (refi) or purchasing a new home.

One of the most important things to ask for when shopping for a refi or when purchasing is a GFE - or good faith estimate. There is a Truth-in-Lending Act ("TILA") statement required for closed-end, fixed-rate residential mortgages under the Truth in Lending Act, and the Good Faith Estimate of Settlement Costs ("GFE") required under the Real Estate Settlement Procedures Act ("RESPA"). A GFE must be provided to you three business days after submission of an application.

The GFE will break down all associated costs, fees, prepayments, and the estimate monthly costs. Important items to look for are discount points and broker fees (shouldn't pay more than 1% origination fee) and any pre-mortgage insurance (PMI).

Be sure to ask if there are any pre-payment penalties.

How do brokers get around the TILA and the 3 day rule? Most lenders don't have you fill out a formal application until closing only then do they conveniently add the GFE in the closing docs.

Always ask for a GFE and do your research to ensure all items have been covered. You can hold them accountable for extreme discrepancies.

Confessions of a Tacoma Real Estate Entrepreneur

noreply@blogger.com (Dan Hall) — Thu, 20 Mar 2008 04:17:00 +0000

Every investor will have their collection of tales in real estate investing. They will have the tale of the "one" that got away. They will have their defining moments in defeat and in victory. I would like to share such a tale with you.

In Late Summer of 2006, I was heavily invested in the Sixth Avenue district in Tacoma. I had researched every parcel up and down that business district, primarily because of the zoning (which is mostly Residential Commercial Mix-Use and Neighborhood Commercial Mix-Use). I felt strongly that Sixth Avenue would become the next Capital Hill in Tacoma. The district is still mostly made up of single family homes but with great zoning and is within walking distance of a lot of great restaurants and bars.

As I dug deeper into the zoning (height limit for most parcels between Pine and State Streets and N. 8th and S. 8th is 45') and the parcels in the area, I realized that sooner or later land prices would become a premium. Why?

SFH prices were high and far outpriced the value of the land they sat on. Homes in the area typically go for 250k plus and usually sit on a smaller than 5k square foot parcel. Actually, there are very few SFHs that sit on anything larger than a 5k lot. I used the mapguide viewer on the City of Tacoma's GovMe site extensively for this. This research led me to make two decisions first I bought a four plex sitting on a 7800 square foot lot that had a nice rental income stream and was well priced at the time. And secondly, I targeted several parcels for acquisition.

One such parcel was located across the Jack in the Box on State Street, it was a small three bedroom rental on a 10k lot. The owner was in the local area and bought it for less than $150k. She had owned it for about three years. I cross referenced her name with White Pages, got a number, and made the call.

I told her I was a local real estate investor and was interested in her house on State street. I asked her if she had any intention of selling and she said she didn't. Not wanting to lose the opportunity, I made a verbal offer of $300k on the spot. She took a deep breathe and asked if I was serious, I said absolutely and said there would be an written offer to her in an hour.

I wrote the offer up with and/or assigns (I like having flexibility), and it was accepted. I knew the land value of the property was worth significantly more than $30/sq ft, so I reached out to several area investors and ended up assigning the contract to a Seattle developer for $17k. Not a bad little deal for the amount of time invested. By the way there are no other SFH on 10k lots in the Sixth Avenue Area that would be at this price point (I have looked).

Look for opportunities, aggressively pursue them, make a strong offer and move the deal.

I use Redfin ...

noreply@blogger.com (Dan Hall) — Tue, 18 Mar 2008 04:35:00 +0000

I use Redfin to look at Real Estate lisitings in Seattle and Tacoma. I used to use Windermere (they uploaded new listings the quickest) and John L Scott is nice for some commercial listings (why can't the CBA website have rendered graphic listings over a map???).

I use Redfin due to two facts.

1. I love to see what I might save if I don't use a traditional buyer's agent (I usually end up telling them which listings I want to view anyways, they just have the MLS Key).

2. They have unique features that shows the number of days on Redfin (on the market) and the price chanes to the listings. Not to mention the tax and parcel information that normally I would have to go to Pierce County's Assessor-Treasure site or Tacoma's Government Made Easy site (easily the best tool for an investor in Tacoma).

Rental Market Heating Up WSJ Article

noreply@blogger.com (Dan Hall) — Fri, 13 Oct 2006 17:20:00 +0000

Bidding War May Be Moving to Rental Front

The country's apartment sector is seeing more bidding wars as tenants jockey for available rental units in increasingly tight markets.

Nationwide, rent for a 1,000-square-foot apartment has risen 3.7 percent in the last year to $1,389 a month, says Property & Portfolio Research Inc.

One of the main reasons for climbing rents is the reduced inventory of units, created in part by developers that built condos or converted rental stock into for-sale units during the home sale boom.

In the second quarter of this year, rental vacancy rates fell to 5.3 percent from 6.2 percent in the year-earlier period. This has produced what is known as a "landlord's market," with companies like AvalonBay Communities Inc. raising their asking prices and cutting concessions for incentives like a free month's rent.

Source: Wall Street Journal, Christine Haughney (10/11/06)

An good article outlining the current state of the Tacoma Real Estate Market...

noreply@blogger.com (Dan Hall) — Fri, 22 Sep 2006 18:39:00 +0000

Forbes.com article 9/22/06

Check out their 10 year prediction for Seattle, though! I think Seattle / Tacoma is a great place to live and not in the same shape as other metro areas but 60% gains over the next 10 years is a little optimistic, I believe.

Real Estate Market Data

noreply@blogger.com (Dan Hall) — Tue, 19 Sep 2006 03:36:00 +0000

where and who people are getting their data. I just look at the MLS and interpret the data how I feel comfortable with. A realtor can provide you with just about any information you desire, of course it helps if you are a buyer or seller working with them, laugh.

Above are a couple of scans of an Area Market Survery hot from the press (generated from the MLS, you can even see the links at the bottom). I am mainly posting this entry for the prolific debaters from both sides of the argument on the housing forum of Craigslist. For better resolution click on the image then expand it. The first pic is all homes sold in seattle from May 18, 2006 to June 18, 2006. The second is from August 18, 2005 to September 18, 2005. The third is August 18, 2006, to September 18, 2006. Don't ask me why the aren't in order, Blogger put them that way.

Tacoma Housing Market sizzle now a simmer..

noreply@blogger.com (Dan Hall) — Wed, 13 Sep 2006 18:55:00 +0000

All the local papers published articles about the cooling Seattle and Tacoma Real Estate Market:

Tacoma News Tribune:
Housing sizzle now a simmer - 09/13/2006

Seattle Times:
Area's home prices idling as buyers take more time - 09/13/2006

Seattle PI
Home buying 'frenzy' may be leveling off - 09/13/2006

Overall I agree with the information published in these articles, they are based on hard numbers that I have confirmed myself through the MLS. We are in a buyer's market, good deals will still move, over priced or undesirable properties will sit - for a very long time.

Seattle Home Prices - A Local Market Debate

noreply@blogger.com (Dan Hall) — Tue, 12 Sep 2006 17:17:00 +0000

Pretty good article in the Seattle Times regarding the local Real Estate market. There is a heated debate whether Seattle is a different market. There are good points on each side.

Home prices' long rise: Is the end near? - 09/03/06

But take this advice because it will serve you well in a buyer's or seller's market. It is a proven principle in real estate and you won't go wrong.

If you are looking to buy. Buy a house you love (if is it your home), but most important buy one that you can afford on a fixed rate mortgage. Your payments will stay the same and you will own your home in thirty years.

The housing market has gotten out of hand because of speculation, investing, and new mortgage programs. Variable rate mortgages make up a very large part of the industry, see the chart below:

http://www.businessweek.com/common_ssi/map_of_misery.htm

Eek, watch out Cali.

I am believer of real estate and do believe in investing in the market. Why? Because of leverage.

You can put 20% down on a property and leverage the rest. You can't do that in the stock market, each dollar invested in your own.

The rental market looks good right now because it hasn't corrected itself yet. Dupre and Scott Apartment Advisors interview thousands of property owners and managers in the Puget Sound region. There are predicting a 15% increase in gross rent over the next two years.

Unfortunately, both buying and renting is becoming more expensive.

Dan
danielh@gibraltarusa.com

Properties are Still Selling in Seattle

noreply@blogger.com (Dan Hall) — Thu, 07 Sep 2006 23:00:00 +0000

You can walk up to any water cooler or any group of people and immediately start a debate on the housing market. I've found, however, this is mostly an emotional debate based loosely on impressions or advice from this guy or that gal. Hardly are hard numbers involved. Now, numbers can be manipulated to show any number of things rarely show the whole picture. However, I like to look at the raw numbers and determine for myself what I think they mean. And I will post these raw numbers on this blog. If you have any market analysis requests in the Tacoma or Seattle area email me and I will see what I can do.

So without further adieu:

Seattle is one of those highly discussed area, partially because it appears the market is not slowing down much. I attribute this to a growing downtown commercial and residential core, a lack of easy expansion due to geography, and the commute.

The following numbers are based on Single Family Homes and Condos.

The number of buyers is constant, which is an indication of a strong market. The inventories, or number of active listings, are rising, doubling actually each month. The next couple of months should be interesting. The rule of thumb is if the inventory is less than 3 months the number of properties sold per month then it is a seller's market. If it is more than 6 months then it is a buyer's market.

Interestingly enough the average days on the market and the price has stayed the same. Homes and Condos are selling in about 30 days and the average price is 475k.

Stay tuned.

What is Your Return on Equity?

noreply@blogger.com (Dan Hall) — Wed, 30 Aug 2006 22:11:00 +0000

I have heard the argument many a times, I don't want to sell because I own the property free and clear. That is a wonderful position to be in but not for the reasons you might think. One of the great benefits to owning investment property is the tax deductions. Mortgage interest is a large portion of it but many people over look the asset depreciation. You don't fully utilize all the depreciation you could get as properties increase in value.

The example below is the difference between a current property almost paid off and a new property bought through a tax-deferred exchange of the current property. Most investors will not hold a property for more than 5 or 10 years, here's why:

Inventories are Jumping through the Roof in Tacoma

noreply@blogger.com (Dan Hall) — Wed, 30 Aug 2006 00:22:00 +0000

I am a big believer in numbers, that is why I went into real estate in the first place.

In the Tacoma Housing Market, inventories have jumped from less than 250 Single Family Homes on the Market in May to over 1300 to date.

Not only that the number of Single Family Homes sold in August in Tacoma was a little over 260, compared to over 520 for the month of August in 2005.

Definitely swinging to a buyer's market. Don't let anyone pressure you into buying. There are plenty of properties available. And yes, while there are some still properties coming under contract in less than a week, that is the anomaly not the norm now.

I am firmly convinced that you should view every property as an investment unless you know for 100% certainty that you are going to live there until you die. Taking the emotional connection out of the picture, take a step back and get the best deal you can in the area you want. If your agent is not providing this kind of service and advice, find another.

I Love the Sixth Avenue District in Tacoma

noreply@blogger.com (Dan Hall) — Tue, 29 Aug 2006 16:59:00 +0000

Great Article about Sixth Avenue in the News Tribune

Sixth Avenue is a growing hotspot in Tacoma, with great restaurants and a strong nightlife. Zoning in the area is robust and there is talk on the city council of increasing the density of the zoning. The majority of my own investments are in this area.

I am a member of the Sixth Avenue Merchant's Association, and we are incredibly involved in Tacoma. Please support Sixth Avenue!

If you need any incentives go grab a pizza from Primo Grill, they have great food.

Article in the Seattle PI Regarding How the Rental Market is Picking Up

noreply@blogger.com (Dan Hall) — Sat, 26 Aug 2006 20:53:00 +0000

Read the Article

While Seattle is a stronger rental market than Tacoma, the basic underlying factors are the same.

Interest Rates Lowest since April ....

noreply@blogger.com (Dan Hall) — Fri, 25 Aug 2006 19:19:00 +0000

Read the Article

Interest rates lower, making Tacoma Real Estate an attractive investment.

Is the Condo Market in Tacoma in Trouble?

noreply@blogger.com (Dan Hall) — Fri, 25 Aug 2006 17:25:00 +0000

Yes, I believe it is and here is why.

Inventories have tripled in the last six months. There were half as many condos sold in July then there were in both May and June. Why?

Developers are setting high prices (Seattle pricing) and are still building more units. Prium is working on three projects in a half mile radius. The median price for a 2 or 3 bed condo sold in the last six months Tacoma is $239k. The median price for a home is $234k. By the way, the median priced condo on the market right now in is $355k.

The reason why condos are attractive is because in most urban markets, Seattle for example, they are much more reasonably priced than single family homes. In Capital Hill in Seattle, the median priced house sold in the last six months is $669k compared to a 2 or 3 bed condo at $369k. That is a difference of over $300k. This is why the Seattle condo market is still hot. Since most people have a hard time entering a market at $670k, condos are much more viable an option.

This absolutely does not exist in Tacoma. Take my advice, do not buy a condo in Tacoma unless you desire that type of living and are willing to pay a premium for it. Condos in Tacoma are not a good investment.

The Tacoma Real Estate Market is Slowing Down this is True...

noreply@blogger.com (Dan Hall) — Fri, 25 Aug 2006 16:42:00 +0000

Don't let Real Estate Agents try to fool you, the market is slowing down. The market is swinging back towards a buyer's market. However, there are some key issues I would like to address. Properties of all kinds, are selling quickly if priced and marketed correctly.

For example a 3 bed / 1 bath, 2000 sq ft house right off 6th Avenue went for 5k more than asking price and was under contract in less than a week.

Now is a very good time to buy or exchange investment property. Why?

The investment property market is slowing but still healthy. The market is shifting from a strong seller’s market over the last four years to a buyer’s market. Increasing interest rates and home prices in the single family housing market, condo conversions, and a stable economy are contributing to lower rental unit supply and increasing rents. For the first time in years, renting is a much more viable and affordable option than buying, with owners getting greater cash flow as a result.

Why is it the perfect time to buy or exchange rental property?

The multi-family property market is still strong with correct pricing and intelligent marketing. Over a quarter of the properties sold in the last two months were on the market for less than three weeks.
Multiplex inventories have doubled in Pierce County over the past year.
A 4% rent increase in the last 12 months with a projected rent increase of 14% of the next two years.
A projected net operating income increase of 21% over the next two years.
In Pierce County, the market vacancy rate is 4.8%. That’s the lowest rate since early 2001 and down from its peak of 8.2% less than two years ago.
In 2006, 5,000 rental units in the tri-county region will be converted to condos significantly decreasing the supply of available units, and putting additional upward pressure on rents.
"Mortgage rates are down for the fourth straight week and are the lowest they've been since mid-April." Frank Nothaft, Freddie Mac chief economist, Aug. 17th.
There is now a difference of $550 between the mortgage payment of an averaged price home in Pierce County and the average rental of an updated 2 bed / 2 bath apartment, making renting an attractive cost-saving option for many people.