Current State of the Spokane Real Estate Market

The Spokane real estate market is beginning to show signs of modest recovery after experiencing a cooling period due to previously high mortgage rates. The market had adjusted considerably to the impacts of increased rates during 2023. Potential homebuyers and investors are now seeing a slightly more optimistic forecast for 2024 as interest rates ease, and economic conditions stabilize.

The median home price in Spokane has risen to approximately $398,622 as of September 2024, reflecting a 6.2% increase from the previous year. This growth indicates a rebound in the housing market, coupled with a rise in inventory levels to 1,508 homes, showcasing a 7.9% increase from the preceding month. However, this increase in available homes did not translate into higher sales, as there was a noted decrease in the number of homes sold during the same period.

Impact of Interest Rates on Spokane’s Market

Mortgage rates, which had surged in 2022 and 2023, are now witnessing a downward trend with rates at about 6.6% as of December 2023. This decline is significant, as it represents the first signs of easing after a period of high-interest pressures. Experts anticipate that these rates might stabilize around 6% throughout 2024, offering a breath of relief to prospective homebuyers in Spokane.

The easing of mortgage rates is also expected to contribute to a more favorable environment for home price growth in the near term. Sellers and buyers alike are adapting to these changes, and the stability in interest rates is pivotal in influencing market conditions favorably.

Investment Prospects and Opportunities

Spokane’s real estate market continues to remain competitive, with various neighborhoods emerging as hotspots for investment. Areas like Lincoln Heights, Rockwood, and Manito on the South Hill, as well as Garland and West Central on the north side, are drawing investor attention due to ongoing infrastructure development and potential property appreciation. These areas offer promising opportunities for investors seeking long-term value.

Investment in the rental market within Spokane is equally robust, driven by high demand and increasing rental rates. The average rent for a one-bedroom apartment now stands at approximately $1,095, highlighting the market’s strength and the potential return on investment for rental properties.

Navigating Spokane’s Real Estate Landscape

The Spokane housing market is characterized by competitive conditions, with homes quickly being snapped up by eager buyers. Aspiring homeowners are advised to act swiftly, as properties often receive multiple offers and go pending in around 19 days. The Redfin Compete Score confirms the competitiveness of the Spokane market, indicating the need for strategic planning for those entering this buying or selling environment.

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