Current Trends in Spokane Real Estate and Interest Rates

As of June 30, 2024, potential homebuyers in Spokane are met with notable news regarding the real estate market and prevailing interest rates. Current mortgage rates hit 7.01% for a 30-year fixed mortgage and 6.23% for a 15-year fixed mortgage. Such figures can be attributed to the ongoing inflationary pressures that have necessitated a rise in interest rates, making homeownership a more costly endeavor for many prospective buyers.

Mortgage rate trends show an upward trajectory largely due to inflation. This trend poses a challenge for aspiring homeowners, with higher rates translating into steeper monthly payments. However, according to the National Association of Realtors (NAR), a forecast suggests that a reduction in interest rates will spur a growth in both new and existing home sales by 19% and 13%, respectively, in 2024.

The Spokane Market and Annual Performance

The real estate market in Spokane is currently experiencing a calm phase, a typical prelude to the bustling period observed around February and March. Historically, this season brings an uptick in both sales and property prices. In 2023, despite seeing a notable activity, there was a year-over-year decline of 7.8% in new listings, totaling 9,239. The median sales price registered a slight dip from $430,000 in 2022 to $420,000 in 2023.

As we edge into 2024, industry experts are optimistic, predicting a modest uptick in the availability of homes for sale. The forecasted mortgage rate is expected to hover around the 6% mark throughout the year. Changes in regulations from January 1, 2024, will require Spokane residential real estate brokers to obtain signed brokerage services agreements prior to offering services, and sellers are no longer mandated to compensate the buyer’s agent.

Regional and State-Wide Market Indicators

The median home price in Spokane County recorded in November 2023 was $407,400. This figure is to be contrasted with the median home price on the West Coast, excluding major markets like Seattle and San Francisco, which was $560,000. Such discrepancies highlight the affordability challenges within larger metropolitan areas.

State-wide, Washington saw a significant appreciation in home values, with a median home price touching $602,000. Over the past three years, there has been an astounding 43.8% increase in home price appreciation, reflecting robust growth within the state’s real estate sector. To assist potential buyers and homeowners, Realtor.com offers a series of mortgage tools, such as a mortgage calculator, affordability calculator, rent or buy calculator, and refinance calculator, aimed at facilitating informed decision-making throughout the home buying process.