Spokane and Coeur d’Alene Housing Market Shows Signs of Stabilization

The housing markets in Spokane and Coeur d’Alene are experiencing a notable shift as inventory levels increase and sales pace moderates. As of June 2024, Spokane boasts 1,253 homes on the market, while Kootenai County offers 1,114 available properties. This surge in housing inventory marks a significant change from the post-pandemic frenzy, indicating a more balanced market for both buyers and sellers.

Despite the increase in available homes, median prices have remained relatively stable. Spokane’s median home price held steady at $425,000 in June 2024, mirroring the figure from the previous year. Kootenai County saw a modest 1.8% increase, bringing the median price to $527,000. These figures suggest a market that is finding its equilibrium after years of rapid appreciation.

Interest Rates and Market Dynamics

The current interest rate environment, with rates hovering around 7%, has played a significant role in shaping market conditions. Higher borrowing costs have caused many potential buyers to hesitate, leading to a slower sales pace compared to recent years. The days of multiple cash offers over asking price have largely subsided, giving way to a more measured approach from both buyers and sellers.

This shift is particularly evident in Spokane, where the inventory of homes has surged by 31% compared to June 2023. The market now boasts a 2.4-month supply of homes, up from just 1.5 months in the previous year. This increased inventory has transformed the landscape into what experts describe as a soft seller’s market, where sellers may need to make improvements or adjustments to secure their full asking price.

Looking Ahead: Forecasts and National Trends

While the local market shows signs of stabilization, national trends offer a glimpse into potential future developments. Pending home sales have shown a slight uptick nationally, with a 3.4% month-over-month increase and a marginal 0.1% year-over-year rise. The National Association of Realtors (NAR) projects a more optimistic outlook for 2024, forecasting higher sales volumes and potentially lower interest rates.

As the market continues to evolve, factors such as consumer confidence, economic uncertainties, and political events like the upcoming presidential election may influence buyer and seller behavior. However, with inventory levels improving and prices stabilizing, the Spokane and Coeur d’Alene housing markets appear to be moving towards a more balanced state, offering opportunities for both buyers and sellers in the coming months.