Spokane Real Estate Market Shows Signs of Growth and Stability

The Spokane real estate market is experiencing a notable uptick in housing inventory, signaling a potential shift in the local property landscape. As of July 2024, there were 1,493 homes available for sale, marking an impressive 8.6% increase from the previous month. This surge in inventory spans across various housing types, with significant increases observed in 2-bedroom, 3-bedroom, 4-bedroom, and 5+ bedroom homes. The expanded selection offers prospective buyers more options and could potentially ease some of the competitive pressure that has characterized the market in recent years.

Despite the inventory growth, Spokane remains firmly entrenched as a seller’s market. This status is reflected in the robust median sold price of $395,243 and a competitive price per square foot of $202. The market’s strength is further evidenced by the fact that 37.1% of homes sold above asking price in the past month, indicating strong demand and willingness among buyers to compete for desirable properties. Additionally, the rapid pace of sales, with 83% of homes selling within 30 days, underscores the market’s dynamism and the continued appeal of Spokane real estate.

Interest Rates and Their Impact on the Market

The real estate landscape in Spokane is being influenced by broader economic factors, particularly interest rates. Lower interest rates are anticipated to increase competition for entry-level and workforce housing, potentially benefiting first-time home buyers who may find it easier to enter the market. This trend could further fuel demand in an already active market, possibly leading to continued price appreciation and quick sales.

Looking ahead, mortgage rates are expected to experience a slight decline in 2024. Forecasts suggest that rates will settle between 6.6% and 6.7% by the end of the year. This projected decrease, while modest, could have a significant impact on affordability and buyer behavior, potentially stimulating even more activity in the Spokane housing market.

Spokane in the National Context

The strength of Spokane’s real estate market aligns with broader national trends. Across the United States, home prices have shown resilience and growth, with a 5.3% year-over-year increase reported in April. This widespread appreciation, observed in all states, positions Spokane as part of a larger pattern of real estate value growth across the country.

As Spokane continues to navigate these market dynamics, both buyers and sellers should remain attentive to evolving trends. The combination of increased inventory, competitive pricing, and favorable interest rate projections suggests that Spokane’s real estate market is poised for continued activity and potential growth in the coming months. Whether you’re looking to buy or sell, understanding these market conditions will be crucial in making informed decisions in Spokane’s vibrant real estate landscape.