Spokane Real Estate Market Sees Growth Amid Shifting Interest Rates

The Spokane real estate market continues to show resilience and growth, even as mortgage rates fluctuate. Recent data reveals that home prices in Spokane have climbed by 3.5% year-over-year in April 2024, demonstrating the area’s strong housing demand. This upward trend is further supported by a 5.9% increase in sales compared to the previous year, indicating a robust market despite challenges in the broader economic landscape.

As of November 2023, the median home price in Spokane County stands at $407,400, reflecting the area’s attractiveness to both local buyers and those relocating from other regions. The market is currently experiencing a calm phase, with experts anticipating a typical uptick in activity as spring approaches. This seasonal pattern suggests that February and March may bring increased opportunities for both buyers and sellers in the Spokane area.

Mortgage Rates and National Trends

On the national front, mortgage rates have shown some favorable movement for potential homebuyers. The average interest rate for a 30-year fixed mortgage has decreased to 6.87%, down 5 basis points from the previous week. For those considering shorter-term loans, the 15-year fixed mortgage rate has seen an even more significant drop, now at 6.33%, which is 12 basis points lower than before.

In Washington state, the current average 30-year fixed mortgage rate is slightly lower than the national average at 6.54%, though this represents a 5 basis point increase from its previous position of 6.49%. These fluctuations highlight the importance for potential homebuyers to stay informed about rate changes and their potential impact on affordability.

Looking Ahead: Predictions for 2024

The National Association of Realtors (NAR) paints an optimistic picture for 2024, forecasting higher sales volumes and lower interest rates. Their projections suggest that the average 30-year fixed mortgage rate could settle around 6.3%, potentially making homeownership more accessible for many Americans. This aligns with the broader consensus among industry experts, who anticipate mortgage rates to ease downward throughout the year.

For the Spokane market specifically, predictions for 2024 include a modest improvement in housing inventory and continued, albeit moderate, price growth. With mortgage rates expected to hover around 6%, the local real estate landscape may offer a balanced environment for both buyers and sellers. As the market evolves, those involved in Spokane’s real estate scene should remain attentive to these trends, preparing for potential opportunities in what promises to be an active and dynamic year ahead.