The Competitive Real Estate Market in Spokane

The Spokane real estate market has proven to be highly competitive. With a Redfin Compete Score of 79 out of 100, potential buyers often find themselves in multiple-offer situations. Homes generally sell briskly, averaging just 19 days on the market. This heightened demand is one of the key factors contributing to the rapid turnover of properties, maintaining the market’s competitive edge.

Further accentuating this competitive environment is the rise in median home prices, which reached $390,000 by August 2024, marking a 6.1% increase compared to the previous year. Despite this price hike, the actual sales volume has seen a decline, with 285 homes sold in August 2024, down from 300 during the same period last year. This paradox of rising prices amidst decreasing sales volumes could be indicative of broader economic influences, particularly interest rates.

Interest Rates and Market Dynamics

Interest rates have exerted significant influence over Spokane’s housing affordability. The higher rates have nearly doubled the typical mortgage payments, creating challenges for prospective buyers looking to upgrade or enter the housing market. This rise in borrowing costs has tapered demand slightly, yet the market remains robust overall.

Concurrently, Spokane has witnessed an uptick in housing inventory. The number of homes for sale grew from 1,039 in August 2022 to 1,252 in August 2024. This increase provides some relief from the previously tight supply conditions and edges the market towards a more balanced state. However, despite this improvement in the inventory situation, demand still outstrips supply, keeping the market relatively balanced but pressurized.

Opportunities in Spokane’s Vibrant Real Estate Landscape

Spokane’s rental market is thriving, driven by a booming population and shifting preferences towards renting. The demand for rental properties continues to rise, making investments in rental units appealing. Currently, the average monthly rent for a 1-bedroom unit stands at $1,095, underscoring the market’s strength and attraction for rental property investors.

The sustained home price growth has persisted for five months by November 2023, suggesting that the market might see continued gradual price increases. This ongoing price appreciation, combined with Spokane’s promising investment opportunities in both emerging neighborhoods and urban centers, positions the city as a lucrative area for real estate investments. New infrastructural projects enhance the appeal, making single-family and multi-family units particularly attractive options for investors.

For more comprehensive insights into Spokane’s real estate market and to explore current listings, visit forsalespokane.com. Here, potential buyers, sellers, and investors can find up-to-date market data and listings tailored to Spokane’s dynamic housing market.