Spokane Real Estate Market Trends in 2024

The real estate market in Spokane has shown robust activity despite broader economic challenges. Sales in Spokane increased by 2.4% year-over-year in July 2024. This rise in sales activity indicates that the market remains dynamic and attractive for both buyers and sellers. Additionally, the listings have seen a significant increase in May 2024 compared to previous months, which signals a potential shift towards a more balanced market. Nevertheless, as of August 2024, the competition remains high due to persistently low inventory levels.

In terms of home prices, Spokane has experienced a slight decrease. Median home prices fell to $417,000 in July 2024, reflecting a minor 0.9% decline from the previous month. The average home value in Spokane County dropped from $431,728 to $428,617 year-over-year, marking the first substantial decrease in over a decade. The increase in the median days on market to 18 days in July 2024, and other reports indicating a further increase to 22 days, highlight a slower pace relative to previous years.

Interest Rates and Buyer Activity

Interest rates in Washington State as of mid-August 2024 were reported at 6.55% for a 30-year fixed mortgage and 6.00% for a 15-year fixed mortgage. These rates are considerably higher than the historical lows seen in recent years and are expected to remain elevated for the foreseeable future. Despite high interest rates, mortgage application rates surged in the first week of August 2024, suggesting that many potential buyers are anticipating future rate cuts before making their purchases.

High interest rates continue to pose a challenge to buyers, yet the demand in Spokane remains significant. The market pace, though slightly accelerated, still shows that homes are selling quickly. Most notably, the low inventory levels create an artificial seller’s market, favoring those looking to sell their properties. Market dynamics are also influenced by new regulations requiring signed brokerage services agreements, potentially impacting buyer and seller interactions with brokers.

Economic Influences and Future Outlook

Spokane’s economy plays a crucial role in supporting its real estate market. The city’s diverse economic base in sectors such as healthcare, education, and tech startups ensures a stable job market, which positively impacts housing stability. Furthermore, the Federal Reserve’s policy decisions have a significant influence on mortgage rates; any future rate cuts could potentially boost the real estate market further.

Looking ahead, forecasts suggest a modest correction in home prices, with a potential slight decline by August 2024 and May 2025. Despite these challenges, moderate growth in the market is anticipated, with 2024 predicted to be a better year for real estate. Lower interest rates could bolster market activity. For more detailed insights and latest updates on the Spokane real estate market, visit forsalespokane.com.