Spokane Real Estate Market Poised for Modest Improvement in 2024

As we enter 2024, the Spokane real estate market is expected to see a modest improvement in the number of homes for sale. This positive shift comes as homeowners adjust to the current rate environment and make lifestyle changes. The market’s gradual recovery is closely tied to mortgage rate trends, which are currently in flux due to various economic factors.

The average 30-year fixed mortgage rate currently stands slightly below 7%, but this figure could soon change. Mortgage rates are expected to fluctuate based on the outcome of a crucial inflation report. If inflation shows signs of slowing down, we could see a slight reduction in rates, providing some relief to potential homebuyers in the Spokane area.

Forecasts and Federal Reserve Influence

Looking ahead, forecasts suggest a downward trend in mortgage rates later in 2024 as inflation subsides. This projection is supported by industry experts who predict a gradual easing of mortgage rates, with rates potentially hovering around 6% for the year. The Federal Reserve’s past efforts to control inflation by increasing the federal funds rate have indirectly influenced mortgage rates. As we move through 2024, potential rate cuts by the Fed could lead to further decreases in mortgage rates, making homeownership more accessible for Spokane residents.

While waiting for rates to decrease, homeowners in Spokane might consider alternative financing options. Home equity line credit (HELOC) rates are currently low compared to alternatives like credit cards and personal loans, making them a viable option for those looking to leverage their home’s equity.

New Developments and Regulatory Changes

The Spokane real estate landscape is set to evolve in 2024, with new developments on the horizon. Developers have submitted plans to build a grocery store on Sprague Avenue and a multifamily residence project in north Spokane, indicating ongoing growth and investment in the area. These projects could potentially increase property values and attract new residents to the neighborhoods.

In addition to new developments, regulatory changes are also shaping the real estate market. Starting January 1, 2024, residential real estate brokers in Washington are required to have a signed brokerage services agreement before providing services to consumers. This new regulation ensures greater transparency and consumer protection in real estate transactions, benefiting both buyers and sellers in the Spokane market. As the year progresses, homebuyers and sellers in Spokane should stay informed about these market trends and regulatory changes to make informed decisions in their real estate endeavors.