Current Trends in Spokane’s Real Estate Market

The Spokane, WA real estate market is experiencing noteworthy changes and trends as of October 2024. In recent months, various factors have influenced the market dynamics, including median home prices, inventory levels, and market competitiveness. Understanding these elements is crucial for potential buyers, sellers, and investors looking to navigate this competitive landscape.

Price Trends and Inventory Levels

The median home price in Spokane has shown a significant increase, with the current figure standing at $398,622 — a 6.2% rise from the previous year. This upward trend in pricing is paralleled by a median price per square foot of $205, further highlighting the area’s growing property value. However, it’s important to note that not all housing types have experienced uniform price changes. While 3, 4, and 5+ bedroom homes have seen price increases, smaller 1 and 2 bedroom homes have actually decreased in price by 6.0% and 0.9%, respectively.

The inventory of homes for sale in Spokane has also expanded, with 1,508 homes available in September 2024. This marks a 7.9% increase from August, paving the way for more options for prospective buyers. The growth in inventory has been primarily driven by an increase in the number of available 3, 4, and 5+ bedroom homes.

Sales Activity and Market Balance

Despite the increase in home availability, there has been a noticeable decrease in sales activity. The number of homes sold or pending in September 2024 dropped to 287, which is a 14.6% reduction from the previous month. This suggests a cooling off period in terms of transactions, leading to a more balanced market where 40.1% of homes sell below asking price, 33% at asking price, and 27% above asking price.

The speed at which homes are selling in Spokane continues to reflect the competitiveness of the market, with many properties receiving an average of two offers and selling within approximately 19 days. In terms of market competitiveness, Spokane remains robust, as indicated by the Redfin Compete Score that highlights multiple offers and instances of waived contingencies by buyers looking to secure their desired property swiftly.

Impacts of Mortgage Rates and Seasonal Fluctuations

Mortgage rates play a crucial role in influencing Spokane’s real estate market dynamics. With rates dropping to around 6.6% by December 2023 and prospects of stabilizing around 6% in 2024, there is potential for improved affordability. Such rate adjustments are likely to stimulate market activity by easing the financial burden on potential homebuyers and encouraging more property investments.

Additionally, seasonal trends have a significant impact on the Spokane real estate market. Typically, transaction volumes increase from May to August, followed by a brief lull in August. Subsequently, there’s an uptick in September and October, before a slowdown during the winter months. These seasonal patterns contribute to the cyclical nature of the market, influenced by weather conditions and buyer behaviors.

For a comprehensive insight into Spokane’s real estate opportunities, consider visiting forsalespokane.com for updated listings and expert advice.