Spokane Real Estate Market Shows Signs of Change in 2024

The Spokane real estate market is experiencing notable shifts as we move through 2024. With a significant increase in housing inventory and changing market dynamics, both buyers and sellers are navigating new terrain. In July 2024, the market saw 1,493 homes for sale, marking an 8.6% increase from the previous month. This surge in available properties could signal a potential rebalancing of the market, which has long favored sellers.

Despite the increase in inventory, Spokane remains a seller’s market, with homes commanding a median sold price of $395,243. The price per square foot stands at $202, reflecting the area’s continued desirability. Furthermore, 37.1% of homes sold above asking price last month, indicating strong demand and competitive bidding situations. However, the average time to sell a home has increased to 18 days, up 28% from the previous year, suggesting a slight cooling in the market’s pace.

Interest Rates and Market Activity

High mortgage interest rates have been a significant factor in shaping the housing market both locally and nationally. As of August 5, 2024, the average 30-year fixed mortgage rate stood at 7.01%, which has contributed to a slowdown in market activity. However, Spokane has shown resilience in the face of these challenges. In May 2024, the market experienced a substantial increase in sales activity, with net closed volume surging by over $58 million compared to April 2024.

This uptick in sales, despite high interest rates, demonstrates the robust demand for housing in the Spokane area. It also suggests that buyers are adapting to the new interest rate environment, possibly spurred by fears of further rate increases or a desire to secure property in a competitive market.

Future Outlook and Market Predictions

As we look to the future, experts are predicting a more balanced market for Spokane. The rise in listings observed in May 2024 could be an early indicator of a shift away from the strong seller’s market of recent years. This change may potentially give buyers more negotiating power and options in their home search.

While a dramatic boom or bust is not anticipated, the market is expected to see stable prices with a slight potential for price corrections in the coming year. This forecast suggests a period of normalization, where both buyers and sellers may find more equitable conditions. As the Spokane real estate market continues to evolve, stakeholders will need to stay informed and adaptable to navigate the changing landscape successfully.