Spokane Real Estate Market Sees Significant Growth

The real estate market in Spokane has been vibrant, with a noticeable increase in sales volume. During May 2024, the area experienced a substantial surge in net closed volume, surpassing $58 million and recording 821 homes sold. This represents a 123-unit increase from April 2024. Furthermore, when comparing May 2024 to May 2023, there was a $40 million rise in net closed volume and 34 more homes sold, underscoring the market’s growing strength and demand.

Spokane’s inventory of homes for sale has also been on the rise. In May 2024, there were 293 more listings compared to April 2024 and 284 additional listings compared to May of the previous year. This growth suggests a possible shift towards a more balanced market, providing more options for buyers and possibly impacting prices and sales velocity in upcoming months.

National Trends Impacting Local Dynamics

On a national scale, existing home sales have seen a slight increase in July 2024 after a four-month decline. However, these sales remain 2.5% lower than the same period last year. The median home-sale price nationally continues to hover at record levels, despite a slight decline from June’s all-time high. Home prices are still up by 4.2% year-over-year. This national trend ties into the Spokane market where median sale prices have remained steady, with a modest 1.6% increase over the past year, bringing the average home value to $397,068.

Mortgage rates have been a significant factor in shaping both national and local real estate markets. As of August 21, 2024, the average rate on a 30-year fixed-rate loan was 6.62%. Though this is below the peak of 8% seen in October 2023, it remains high enough to impact affordability and buyers’ purchasing decisions. The elevated rates contribute to a more cautious and calculated approach among potential buyers, influencing overall market activity.

Forecasts and the Path Ahead

The supply of homes for sale on a national level has increased by 19.8% from a year ago, signaling a move towards greater availability. Despite this increase, national inventory levels are still below what is considered necessary for a balanced market. In Spokane, the increase in inventory has been more pronounced, with significant growth compared to previous months and last year. This increase may help ease the pressure on buyers, creating more negotiations leverage and potential price adjustments.

Forecasts for the Spokane real estate market suggest a potential slight correction in home prices. By August 2024, prices are expected to decline by 0.8%, with a further 0.9% decrease anticipated by May 2025. These projections indicate a movement towards a more balanced market rather than dramatic fluctuations. This stability could benefit both buyers and sellers looking for a long-term investment. For more detailed information on the Spokane real estate market, you can visit For Sale Spokane.