Spokane and Coeur d’Alene Housing Market Shows Signs of Shift

The housing markets in Spokane and Coeur d’Alene are experiencing a notable shift, with inventory levels slowly increasing and sales pace remaining muted compared to the post-pandemic boom. This change signifies a move towards a more balanced market, reminiscent of pre-pandemic conditions. As of June, the number of homes available for sale has grown by 9.1% compared to May 2024, indicating a steady rise in housing options for potential buyers.

Despite the increase in inventory, the current market is best described as a soft seller’s market. High interest rates, hovering around 7%, are causing buyers to hesitate, which in turn affects the overall sales pace. This shift has led to a more normal pace of sales and inventory levels, resembling the housing market before the pandemic-induced frenzy.

Pricing and Market Dynamics

In Spokane, the median home price remains steady at $425,000, mirroring figures from the same period in 2023. Kootenai County, on the other hand, has seen a slight increase, with the median home price reaching $527,000, representing a 1.8% rise over the previous year. These figures suggest a stabilization in prices, even as the market dynamics continue to evolve.

The changing market conditions have also impacted seller expectations. To achieve full asking price, sellers are now required to make improvements to their properties, such as painting or installing new floors. This development further underscores the shift towards a more balanced market, where buyers have more leverage in negotiations.

Interest Rates and Future Outlook

Interest rates continue to play a crucial role in shaping the housing market. The current high rates are a significant factor in buyer hesitation and the overall pace of sales. However, it’s worth noting that any potential decrease in interest rates could lead to unintended consequences. A drop in rates might result in reduced inventory and increased prices, highlighting the delicate balance within the market.

As the housing market in Spokane and Coeur d’Alene continues to evolve, both buyers and sellers will need to adjust their strategies. Sellers may need to be more flexible and willing to invest in property improvements, while buyers should remain vigilant for opportunities as inventory levels rise. The coming months will be crucial in determining whether this shift towards a more balanced market will persist or if new factors will emerge to influence the housing landscape in these regions.