Spokane Real Estate Market Report: July 2024

The Spokane real estate market continues to demonstrate resilience and growth as we move through the summer of 2024. With a notable increase in inventory and steady price trends, the market remains firmly in favor of sellers while showing signs of potential balance on the horizon.

As of July 2024, the number of homes for sale in Spokane has risen to 1,493, marking an 8.6% increase from the previous month. This boost in inventory is a welcome development for potential buyers who have been navigating a competitive market. Despite this increase, the market still firmly favors sellers, with homes selling at a brisk pace and often above asking price.

Market Dynamics and Sales Performance

The average time on market for Spokane homes stands at 18 days, which, while 28% longer than last year, still indicates a robust seller’s market. This is further evidenced by the fact that 37.1% of homes sold above their asking price in the past month. The market’s strength is also reflected in recent sales volumes, with May 2024 seeing a substantial surge of over $58 million in net closed volume and 821 homes sold – a significant increase from the previous month and year.

Year-over-year comparisons paint an equally positive picture. May 2024 outperformed its 2023 counterpart by $40 million in net closed volume, with 34 more homes sold. This upward trend in both volume and units sold underscores the market’s continued vitality and appeal to both buyers and sellers.

Price Trends and Market Outlook

Despite some predictions of a potential decline, Spokane’s housing prices have remained steady throughout 2024. The average home value currently sits at $397,068, representing a modest 1.6% increase over the past year. This stability in pricing, coupled with the increase in inventory, suggests that the market may be inching towards a more balanced state, although it still heavily favors sellers.

However, the impact of rising interest rates cannot be overlooked. Buyers are showing some hesitation in the face of higher borrowing costs, contributing to what can be described as a soft seller’s market. This environment may require sellers to make improvements or adjustments to their properties to secure full asking price. Nevertheless, the market pace remains brisk, with homes going pending in an average of just 7 days, indicating that buyer demand still outpaces available inventory, maintaining Spokane’s status as a strong seller’s market for the foreseeable future.