Understanding Spokane’s Booming Real Estate Market

As of October 2024, Spokane’s real estate market has demonstrated remarkable resilience and growth. For those looking to invest or settle in this vibrant city, understanding key market trends is crucial. From soaring median home prices to competitive market dynamics, Spokane remains a notable destination for both homebuyers and real estate investors.

Rising Home Prices and Market Competitiveness

The median home price in Spokane has reached $398,622, showing a 6.2% increase over the past year. This rise underscores the strong demand for housing in the city. The competitive nature of the market is reflected in Spokane’s Redfin Compete Score of 80 out of 100, indicating that homes often receive multiple offers and sell quickly, with an average sale time of just 19 days. Potential buyers should be prepared for a fast-paced market environment where making timely decisions is essential.

Spokane’s housing competitiveness is further underscored by the variety in price trends across different home sizes. While three-bedroom homes saw a significant increase in price by 6%, one-bedroom homes experienced a price decrease of 6%. Such dynamics highlight the varied demand across different segments of the market, necessitating keen market research for prospective buyers.

Inventory and Sales Dynamics

One of the notable changes in the Spokane real estate market is the increase in available inventory. The number of homes for sale rose by 7.9% from August to September 2024, leading to 1,508 homes on the market. This increase suggests a shift toward a more balanced market, with inventory levels approaching a three-month supply compared to the previous 0.5-month supply earlier in the year.

Despite an increase in inventory, there has been a 14.6% decrease in homes sold or pending, with 287 transactions recorded in September 2024. The sales pattern indicates a diverse range where 40.1% of homes sold below asking price, 33% at asking price, and 27% above asking price. Understanding these nuances can help buyers and sellers alike to set realistic expectations in their real estate transactions.

The Impact of Interest Rates and Relocation Trends

High interest rates often pose challenges to real estate markets, but Spokane has shown resilience, maintaining robust home prices and rapid sales times. As of mid-November 2023, rates hovered around 7.5%, creating slightly higher mortgage costs. However, predictions of stabilizing or even declining rates in 2024 may bolster further market activity.

Spokane continues to attract movers from cities like Los Angeles, Seattle, and San Francisco. Approximately 35% of local homebuyers choose to remain within the Spokane metro area, while others consider nearby attractions such as Sandpoint, Bellingham, and Ellensburg. The influx of new residents not only supports Spokane’s housing market but also enriches its diverse community fabric.

Neighborhood Insights and Rental Market Trends

The popularity of Spokane neighborhoods such as Lincoln Heights, Rockwood, and Manito on the South Hill reflects the city’s cultural and lifestyle appeal. Areas like Cliff/Cannon Park, Browne’s Addition, and Liberty Lake’s Rocky Hill have emerged as sought-after locales, showcasing the city’s growth in different directions. With these varied options, Spokane offers something for everyone, from historic charm to modern conveniences.

Furthermore, Spokane’s rental market shows growing strength, fueled by increasing demand and evolving housing preferences. As the city experiences population growth, the average rent for a 1-bedroom unit stands at $1,095, with properties strategically located near employment hubs and public amenities being especially in demand. For those interested in Spokane’s promising real estate opportunities, visit ForSaleSpokane.com for additional insights and listings.