Spokane Real Estate Market Shows Resilience Amid Changing Conditions

The Spokane real estate market is demonstrating remarkable resilience in the face of changing economic conditions. As of July 16, 2024, the market has shown a significant uptick in inventory and sales volume, despite challenges posed by elevated interest rates. This complex landscape presents both opportunities and challenges for buyers and sellers in the region.

One of the most notable developments is the 9.1% increase in homes for sale in June 2024 compared to the previous month, bringing the total available inventory to 1,480 homes. This surge in inventory has been accompanied by a 28% increase in the average sale time, now standing at 18 days on the market. Despite these shifts, the market remains competitive, with 37.1% of homes in Spokane selling above asking price in June 2024.

Market Activity and Price Trends

Despite higher mortgage rates, which have been hovering around 7% for 30-year fixed mortgages, the Spokane housing market has seen a significant increase in sales activity. Net closed volume surged by over $58 million in May 2024 compared to April 2024, indicating strong demand. Median sale prices have held steady in 2024, with a slight increase year-over-year, although some experts predict a slight price correction in the coming year.

The inventory landscape has seen varied changes across different property types. The inventory of 2 bedroom homes increased by a substantial 22.7%, while 3 bedroom and 4 bedroom homes saw more modest increases of 2.2% and 4.5% respectively. Larger homes with 5 or more bedrooms also saw a significant inventory increase of 21.2% in June 2024 compared to the previous month.

Interest Rates and Economic Factors

While elevated interest rates have been a concern for both buyers and builders, there are signs of potential relief on the horizon. The 10-year Treasury note yield is near its lowest level since March, indicating the possibility of interest rate cuts in the near future. This could provide a boost to the market, potentially increasing affordability for buyers and stimulating further activity.

However, it’s important to note that confidence among US homebuilders has fallen for the third straight month in July, as elevated interest rates continue to weigh on sales and keep construction financing costs high. Despite these challenges, the Spokane housing market is showing signs of resilience, with prices recovering somewhat in 2023 and remaining stable so far in 2024. As the market continues to evolve, both buyers and sellers will need to stay informed and adaptable to navigate these changing conditions effectively.