The Truth About Real Estate Returns in Pierce and King County

Real estate is often seen as a guaranteed path to wealth, but like any investment, it depends on timing, strategy, and location. Even in strong markets like Pierce and King County, real estate can be a poor investment when the fundamentals are overlooked.

One of the biggest pitfalls buyers face is purchasing at the top of the market. When competition heats up and interest rates fall, it’s easy to get caught up in bidding wars and pay more than a property is worth. If the market stabilizes or rates climb again, the growth you expected might take longer to show up. According to the Northwest Multiple Listing Service, the median sales price across the region dropped about 0.7 percent year over year as of September 2025, a reminder that housing values don’t always move in one direction (NWMLS).

Financing decisions also matter. Adjustable-rate mortgages or higher-interest loans can look appealing at first but become expensive if rates adjust upward or personal finances change. Buying beyond your comfort zone can also turn a good opportunity into a stressful one when taxes, maintenance, and insurance start adding up. Real estate tends to perform best when long-term gains outweigh these ongoing costs.

Liquidity is another consideration. Real estate can’t be sold overnight, and if you need to move quickly during a slower market, you might have to settle for less than you hoped. This can happen when inventory increases or buyer demand shifts. Even within Pierce and King County, some neighborhoods outperform others. The Zillow Home Value Index shows a slight decline of about 0.2 percent in Pierce County over the past year, while Realtor.com reports that local inventory and buyer options have increased.

The truth is, real estate isn’t automatically a good investment. It becomes a smart one when your goals, finances, and timing all align. In markets like Pierce and King County, success still depends on understanding how local trends and personal strategy intersect. Working with someone who studies these shifts daily and approaches real estate with both data and strategy makes all the difference.

— Larissa Butler, Realtor® | Keller Williams Puget Sound

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Written by Larissa Butler, a top female Realtor serving Pierce and King County, Washington. Recognized for her data-driven marketing and focus on empowering women through homeownership.