Spokane Real Estate Market: Current Trends

The Spokane housing market is projected to maintain stability and demonstrate growth throughout 2024. This forecast is buoyed by various factors, including economic stability, a burgeoning population, and a rise in new construction activities. Notably, the average interest rate for a 30-year fixed mortgage has seen a marginal decline, resting at 6.58% as of August 2024. This easing of rates, along with other market conditions, is expected to foster a favorable environment for both buyers and sellers.

Spokane’s diversifying economy, particularly burgeoning sectors such as healthcare, education, and technology startups, plays a crucial role in maintaining a stable job market. This economic resilience, in turn, supports the real estate landscape. Furthermore, population growth continues at a steady pace, driven largely by an influx of residents from pricier West Coast cities seeking more affordable living options in Spokane.

Key Market Influences

Inventory levels in Spokane have improved, with a noted increase to a 2.4-month supply as of June 2024, up from a 1.5-month supply the previous year. Despite this improvement, the inventory is still relatively low by historical standards. Home prices, while still on the rise, are expected to increase at a more moderate rate compared to previous years. As of November 2023, the median home price in Spokane County was recorded at $407,400.

The rental market remains robust, spurred by continuous population growth and a steady influx of younger demographics. Although rental prices are projected to experience moderate increases, the reliability of this sector provides reassurance for both investors and renters. New construction is anticipated to play a pivotal role in meeting demand and stabilizing prices, ensuring that the market remains balanced.

Interest Rates and Market Activity

The influence of interest rates on the Spokane real estate market cannot be understated. With the current average interest rate for a 30-year fixed mortgage at 6.58%, slightly lower than the previous week, there is optimism that rates will continue to moderate through the rest of 2024. Lower interest rates are expected to stimulate new home sales and bolster the market for existing homes, particularly benefiting first-time homebuyers who are highly rate-sensitive.

Market activity, while experiencing a decline in home sales in June 2024 compared to the prior year, is seen as part of a normal market cycle. The year-to-date decline is less marked, suggesting a healthy moderation rather than a downturn. The combined forecast of steady population growth, economic diversification, and controlled interest rates presents a promising outlook for the Spokane real estate market in 2024.

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