Spokane Real Estate Market Shows Signs of Cooling Amidst Rising Interest Rates

The Spokane real estate market is experiencing a significant shift as of July 13, 2024, with declining sales and increasing inventory marking a departure from the previous year’s trends. This change in market dynamics is largely attributed to mortgage interest rates hovering around 7%, which has noticeably impacted buyer behavior and contributed to the slowdown in sales.

Despite these changes, the median home price in Spokane remains steady at $425,000, unchanged from last year. This figure stands $133,000 lower than the national median price, highlighting Spokane’s relative affordability compared to other markets across the country. The stability in median price, coupled with the market shifts, suggests a complex landscape for both buyers and sellers in the coming months.

Market Trends and Economic Predictions

Economists are predicting a stabilization of the market rather than a decline in home prices. While price appreciation is expected to ease, a significant drop in values is not anticipated. This forecast aligns with the current inventory levels, which remain low at a 2.4-month supply, indicating that the market still favors sellers to some extent.

Interestingly, the most desirable properties in Spokane continue to sell quickly and often attract multiple interested parties. This trend underscores the persistent demand for certain types of homes, even as the broader market experiences a cooldown. It also highlights the importance of property condition, location, and pricing in determining market success.

Regional Outlook and Comparison to National Trends

The Spokane market is following national trends in terms of declining sales and increasing inventory. However, local factors are also playing a role in shaping the market’s trajectory. The significant difference between Spokane’s median home price and the national median suggests that the area remains an attractive option for buyers looking for more affordable housing options.

Looking ahead, the market is expected to continue in its current direction. With prices easing in their appreciation and inventory remaining relatively low, both buyers and sellers face challenges. Buyers may find more options available but could still encounter competition for the most desirable properties. Sellers, while benefiting from continued demand, may need to adjust their expectations in terms of time on market and potential price appreciation. As the Spokane real estate market navigates these changes, all stakeholders will need to stay informed and adaptable to the evolving conditions.