Spokane Rooter
The Spokane housing market is entering an intriguing phase in May 2024, characterized by increasing sales activity and rising inventory levels, signaling potential stabilization after an extended period of intense buyer competition. The Spokane Association of Realtors reports a significant surge in net closed volume, indicating a robust 123-unit increase in home sales compared to the previous month and a healthy year-over-year growth. Buyers might find themselves in a more favorable position as inventory rises, shifting some negotiating power from sellers to buyers. This article delves into the current trends shaping the Spokane housing landscape and provides insights into future market predictions, equipping potential buyers, sellers, and investors with the knowledge they need to navigate this evolving market.
Key Takeaways
- The Spokane housing market is seeing increased sales activity and rising inventory levels, signaling a transition from a seller’s market.
- Home sales surged in May 2024, with 821 homes sold and a notable year-over-year growth in sales volume.
- Despite rising prices, there are signs of a cooling trend in the market, with predictions of slight home value declines in the near future.
Current Trends in the Spokane Housing Market
The Spokane housing market is currently undergoing a significant transition as of May 2024, reflecting both increased sales activity and an uptick in inventory levels, which could mark the beginning of a more balanced market. According to the Spokane Association of Realtors, the net closed volume surged by over $58 million, with a total of 821 homes sold this month. This activity represents an impressive increase of 123 units compared to April 2024, as well as a robust year-over-year growth, with $40 million and 34 additional homes sold since May
2023. One of the most telling signs of a shift in market dynamics is the substantial rise in the inventory of homes for sale, which increased by 293 listings from April and by 284 when compared to the same month last year. This influx of inventory may be empowering buyers with more negotiating leverage, contrasting sharply with the previous seller’s market conditions. While median sale prices have slightly increased according to data from platforms like Zillow and Redfin, Spokane County has recently experienced a modest decline in average home values. This marks a notable change, as it is the first such drop in over ten years, after peak prices were reached in May
2022. The market has shown signs of stabilization throughout 2023 and early 2024; however, experts predict a slight correction could manifest in the coming year, with expected declines of
0.8% by August 2024 and
0.9% by May
2025. Overall, this evolving landscape does not suggest an imminent market crash or an explosive rise; rather, it indicates that the increasing interest rates may contribute to a more balanced environment that could affect both buyer enthusiasm and the pace of price growth in the near future.
Future Outlook and Market Predictions
As the Spokane housing market evolves, several key indicators suggest a shift towards a more balanced landscape. The recent rise in sales activity, coupled with growing inventory levels, reflects changing dynamics that are crucial for potential buyers and sellers alike. With 821 homes sold in May 2024, marking a significant increase over previous months, it’s clear that buyer demand remains robust. However, the jump in available listings—from April to May—means that buyers now have more options to choose from, ultimately shifting some negotiating power back to them. Additionally, while median sale prices have seen a slight uptick, the overall trend indicates that home values may be stabilizing after years of rapid increases. This trend is particularly notable in Spokane County, where for the first time in a decade, average home values have dipped. As interest rates continue to rise, they could play a pivotal role in shaping buyer sentiment and market movements, leading to more cautious purchasing decisions and influencing price growth trajectories in the months to come.
