Spokane RooterSpokane Real Estate Market Shows Mixed Trends in July 2024
The Spokane real estate market experienced a notable shift in July 2024, with inventory levels rising and sales figures declining. According to recent data, the number of homes for sale in Spokane reached 1,493, marking an 8.6% increase from the previous month. This change in inventory levels suggests a potential easing of the tight housing market that has characterized many regions across the United States in recent years.
Interestingly, the inventory increase was not uniform across all types of properties. One-bedroom homes saw the most significant jump, with a 26.9% increase in availability. Meanwhile, larger homes with four or more bedrooms also experienced substantial inventory growth, with increases of 13.4% for four-bedroom homes and 14.8% for those with five or more bedrooms. However, the market for two-bedroom homes bucked this trend, showing an 8.3% decrease in inventory.
Despite the overall increase in available homes, sales in Spokane took a hit in July 2024. The number of homes sold dropped to 309, representing a 10.7% decrease from June 2024. This decline in sales, coupled with the rise in inventory, could indicate a shift towards a more balanced market, potentially offering buyers more options and negotiating power.
Market Dynamics: Days on Market and Sales Velocity
The average time homes spent on the market in Spokane increased to 22 days in July 2024, a significant 37.8% rise compared to the previous year. This extension in the selling timeline might suggest a cooling of the frenzied pace that has characterized many real estate markets in recent years. However, it’s important to note that despite this increase, the majority of homes in Spokane are still selling relatively quickly.
In fact, the sales velocity data paints a nuanced picture of the market. An impressive 75% of homes sold within 30 days of listing, indicating that there is still strong demand for properties in desirable locations or at attractive price points. Additionally, 19% of homes sold between 30 to 90 days, while only 4% remained on the market for over 90 days. These figures suggest that while the market may be slowing slightly, it remains robust overall.
Broader Context and Future Outlook
The Spokane real estate market’s current state reflects broader national trends. Across the country, existing home sales have fallen to levels reminiscent of 2008 or 1995. However, new home sales are showing strength, on track for one of their best years since 2008. This dichotomy highlights the complex nature of the current housing market, influenced by factors such as interest rates, inventory levels, and economic conditions.
Looking ahead, there’s cautious optimism for the Spokane real estate market. The National Association of Realtors (NAR) forecasts a brighter 2024, predicting higher sales and lower interest rates. If these projections materialize, they could have a positive impact on Spokane’s housing market, potentially stimulating both buying and selling activity. Additionally, with Spokane’s median home price of $407,400 (as of November 2023) remaining significantly lower than the Washington State median of $602,000, the area may continue to attract buyers seeking more affordable housing options. As the market continues to evolve, both buyers and sellers in Spokane will need to stay informed and adaptable to navigate these changing conditions effectively.
