Spokane Real Estate Market: A Look Ahead to 2024

As we approach 2024, the Spokane real estate market is poised for interesting developments. After experiencing some fluctuations in recent years, industry experts are predicting a year of modest improvements and gradual growth. This forecast comes as welcome news for both buyers and sellers who have been navigating a challenging market landscape.

One of the most significant predictions for 2024 is a modest improvement in inventory. Homeowners, having adjusted to the current rate environment and experiencing lifestyle changes, are expected to list their properties more frequently. This increase in available homes could help balance the market, providing more options for potential buyers who have been facing limited choices in recent years.

Price Trends and Mortgage Rates

Despite a slight decline in home prices during 2023, experts anticipate modest price growth in the coming year. The average home price in Spokane is projected to rise gradually, reflecting the area’s continued desirability and economic stability. This trend, while potentially challenging for some buyers, signals a healthy market that continues to attract investment.

Mortgage rates, a critical factor in real estate transactions, have shown promising signs. After reaching a low of around 6.6% in December 2023, industry experts predict a further easing of rates in 2024. With average rates potentially hovering around 6% for the year, this could create more favorable conditions for potential homebuyers, possibly stimulating increased market activity.

Market Activity and Challenges

The Spokane housing market has already shown signs of increased dynamism, with a significant surge in sales activity observed in May 2024. This uptick in net closed volume and the number of homes sold indicates a robust market with active buyers and sellers. Additionally, rising inventory levels suggest a shift towards a more balanced market, potentially easing some of the competitive pressure buyers have faced in recent years.

However, challenges remain, particularly for first-time homebuyers. While improving inventory and available mortgage programs may provide more opportunities, rising home prices and higher mortgage rates compared to historical lows continue to present hurdles. The rental market in Spokane is also evolving, with increasing demand and high rental prices reflecting the area’s growing population and shifting housing preferences. As we move into 2024, these various factors will continue to shape the Spokane real estate landscape, presenting both opportunities and challenges for all market participants.