Current Market Trends in Spokane

The real estate landscape in Spokane experienced notable shifts in July 2024. With 1,493 homes available for sale, this marked an 8.6% increase compared to the previous month, June 2024. This rise in housing inventory has provided a broader selection for potential homeowners and signals a cooling of the previously tight market.

When examining the housing inventory by bedroom count, there were significant variations. One-bedroom homes saw a substantial surge in availability, increasing by 26.9%. Conversely, the number of two-bedroom homes on the market decreased by 8.3%. Meanwhile, the inventory for three-bedroom homes climbed by 6.7%, four-bedroom homes by 13.4%, and homes with five or more bedrooms saw an increase of 14.8%. These changes reflect evolving buyer preferences and availability in the Spokane housing market.

Sales Activity and Market Pace

Sales volume in Spokane showed a decrease in July 2024, with a total of 309 homes sold or pending, down by 10.7% month-over-month. Analyzing the distribution of sold homes, 35% of homes went under asking price, 28% sold at asking, and 37% exceeded the asking price. This indicates a varied market where strategic pricing plays a crucial role for sellers.

The average time required to sell a home in Spokane lengthened to 22 days in July 2024. This marks a 37.8% increase compared to July of the previous year, suggesting a slight slowdown in market operations. Despite this increase, the market pace remains brisk with 75% of homes selling within 30 days. An additional 19% sold within 30 to 90 days, while 4% took over 90 days to sell.

Impact of Mortgage Interest Rates

One of the contributing factors to the changing dynamics in the Spokane housing market is the high mortgage interest rates. By June 2024, the average 30-year fixed mortgage interest rate stood at 7.01%, nearly three times the record low of 2.65% from January 2021. This elevation in interest rates has naturally slowed down the market and contributed to affordability concerns among potential buyers.

Despite slight decreases in home values, they remain unattainable for many due to the compounded effect of high interest rates and stagnant wages. However, the real estate forecast suggests a possible minimal price correction in the near future. Predictions indicate a small decline of 0.8% by August 2024 and a further decline of 0.9% by May 2025, hinting at a possible equilibrium in the market.

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