Spokane Real Estate Market Shows Signs of Shifting Dynamics

The Spokane real estate market is experiencing a subtle yet significant shift as housing inventory slowly grows in both Spokane and Coeur d’Alene. This change in market dynamics is providing new opportunities for both buyers and sellers in the region. Despite the evolving landscape, the median price of a home in Spokane has remained steady at $425,000 compared to the same month in 2023, indicating a level of stability in home prices that may comfort potential buyers.

One of the most notable changes in the market is the substantial increase in available homes. At the end of June, there were 1,253 homes on the market, representing a remarkable 31% increase from the 960 homes available in 2023. This growth in inventory has extended the time it would take to sell all available homes to about 2.4 months, up from the 1.5-month supply observed in June 2023. While this increase is significant, it’s worth noting that realtors consider a six-month supply to be the ideal gold standard for a balanced market, suggesting there’s still room for further inventory growth.

Sellers Adapt to Changing Market Conditions

The shifting market dynamics have prompted sellers to adjust their strategies. With more homes available and buyers taking longer to make decisions, sellers are finding it necessary to make improvements to their properties to secure full asking prices. Common upgrades include fresh paint and new flooring, as these enhancements can make a significant difference in attracting potential buyers in a more competitive market.

The impact of high interest rates cannot be overlooked in this evolving landscape. With national mortgage rates hovering around the 7% range, many potential buyers are hesitating to make purchases. This hesitation is contributing to a less brisk market than what would typically be seen with lower interest rates. The situation underscores the delicate balance between inventory, pricing, and financing costs in the real estate market.

Regional Variations and Economic Factors

While Spokane’s market shows signs of stabilization, neighboring Kootenai County presents a slightly different picture. The median price of a home in Kootenai County at the end of June was $527,000, marking a 1.8% increase over 2023. Homes in this area are averaging just over three months on the market, indicating a somewhat slower pace compared to Spokane.

As the local real estate market continues to evolve, it’s important to consider the broader economic factors at play. Inflation concerns and the upcoming presidential election are influencing consumer confidence and buying decisions. These macroeconomic elements, combined with local market conditions, will likely continue to shape the Spokane real estate landscape in the coming months. Both buyers and sellers will need to stay informed and adaptable as they navigate this changing market.