Spokane Housing Market Shows Mixed Signals in June 2024

The Spokane, Washington housing market displayed a complex landscape in June 2024, with both positive and challenging indicators for buyers and sellers alike. As the summer real estate season reached its peak, the market saw an increase in inventory coupled with a decrease in sales, painting a picture of a gradually shifting market dynamic.

According to the latest data, the number of homes for sale in Spokane reached 1,480 in June 2024, marking a significant 9.1% increase from the previous month. This boost in inventory provides more options for potential buyers, potentially easing some of the intense competition that has characterized the market in recent years. However, despite this increase, Spokane remains firmly in seller’s market territory, with homes continuing to sell quickly and often above asking price.

Price Trends and Sales Activity

The median sold price for homes in Spokane stood at $395,243 in June 2024, with an average price per square foot of $202. This figure reflects the ongoing strength of the market, despite recent challenges. Interestingly, the number of homes sold in June saw a notable decline, dropping 21.3% from the previous month to 311 units. This decrease in sales volume could be attributed to various factors, including affordability concerns and changing buyer sentiment.

Homes in Spokane continued to sell quickly, with an average of just 18 days on the market. While this represents a 28% increase compared to the previous year, it still indicates a robust demand for housing in the area. The sales distribution further underscores the competitive nature of the market, with 37% of homes sold above asking price, 32% at asking price, and 31% below asking price.

Market Influences and Future Outlook

Several factors are influencing the Spokane housing market as it moves through 2024. Mortgage rates, which had reached a low of around 6.6% in December 2023, have played a significant role in shaping buyer behavior. Industry experts anticipate a gradual easing of rates, potentially settling around 6% for the year, which could stimulate buyer activity.

Regulatory changes have also impacted the market landscape. As of January 1, 2024, residential real estate brokers in Washington are required to have signed brokerage services agreements before providing services to consumers. This change aims to enhance transparency and consumer protection in real estate transactions. Additionally, recent assessments have shown the first decline in average home values in Spokane County in over a decade, potentially signaling a leveling of the market after years of rapid growth. Despite these shifts, affordability remains a significant challenge for many potential buyers, with wage growth failing to keep pace with rising home prices and interest rates. As the Spokane housing market continues to evolve, both buyers and sellers will need to navigate these complex conditions carefully.