Spokane Real Estate Market Overview – July 2024

The Spokane real estate market has witnessed a notable shift in July 2024 with a significant increase in inventory levels. Specifically, the number of homes for sale rose by 8.6% compared to June 2024, reaching a total of 1,493 homes. This surge in inventory provides potential homebuyers with more options but has contrasting impacts on various aspects of the market.

Inventory and Sales Dynamics

Breaking down the inventory increase, the availability of 1-bedroom homes rose sharply by 26.9%, while 3-bedroom homes saw a 6.7% increase. Larger homes, including those with 4 bedrooms and 5 or more bedrooms, experienced inventory hikes of 13.4% and 14.8%, respectively. However, despite this broader selection for buyers, the market saw a 10.7% decline in homes sold, with only 309 transactions completed in July 2024.

Furthermore, the average time a home spends on the market has also increased. From the prior year’s data, it rose by 37.8%, reaching an average of 22 days on the market. This extended duration could be attributed to higher mortgage interest rates, causing potential buyers to hesitate and delay their purchasing decisions.

Market Trends and Future Predictions

Despite the increased inventory and longer market times, 36.6% of the homes sold above the asking price, maintaining a competitive atmosphere within the market. The median home price in Spokane remained stable at $425,000 in June 2024, consistent with the same month from the previous year. These metrics indicate a balanced market that is slowly shifting from a seller’s dominant stance.

However, affordability remains a concern for many potential buyers in Spokane County. With rising home prices and high interest rates, the average home price remains out of reach for a significant portion of the population. This affordability issue may further impact buyer behavior and market dynamics.

Looking ahead, experts predict a slight price correction within the next year. Forecasts suggest a minor decrease of 0.8% by August 2024 and an additional decline of 0.9% by May 2025. For those looking to buy or sell in Spokane, staying informed about these market changes is essential. For more detailed information and assistance with real estate needs in Spokane, visit forsalespokane.com.