Spokane Housing Market Trends and 2024 Predictions for Downtown Corridor

Current Market Overview

As of 2025, the Spokane housing market is characterized by steady moderate growth, with increased buyer activity and stabilizing inventory levels. The median home price in Spokane hovers between $410,000 and $450,000, reflecting a year-over-year appreciation rate of approximately 3-6%. Despite a slight recent dip of 0.6% in average home values, the market remains attractive to both buyers and investors.

Inventory and Buyer Activity

Inventory levels in Spokane are still relatively low compared to national averages, with about 2.1 months of supply. However, this figure is gradually increasing, offering more opportunities for buyers. Local real estate expert Joey Costello from Windermere Real Estate suggests that the rising inventory is a positive sign for prospective homebuyers looking to enter the Spokane market in 2024.

Downtown Spokane vs Spokane Valley Market

Downtown Spokane

Downtown Spokane continues to attract strong investment interest due to its proximity to universities and employment centers. This has spurred rental demand and new development projects, making it a hotspot for both residential and commercial investment. New multifamily and mixed-use developments are underway, reflecting the city’s commitment to meeting the housing demands of a growing population.

Spokane Valley

In contrast, Spokane Valley offers more affordable housing options, though with slower price appreciation compared to Downtown and South Hill. This area remains appealing for first-time buyers and investors seeking entry-level opportunities.

South Hill Luxury Market Trends

South Hill is Spokane’s premier luxury market, with high-end homes commanding premium prices. The demand for luxury homes in South Hill has been stable or modestly increasing, driven by affluent buyers attracted to the area’s quality neighborhoods and amenities.

New Construction and Development Projects

Spokane is witnessing a rise in new construction projects, particularly in the downtown corridor and near universities. These developments focus on multifamily units and mixed-use projects, essential for addressing the city's limited housing supply.

Several new residential developments are also planned in South Hill and Spokane Valley, aiming to cater to first-time buyers and investors. These projects are crucial for mitigating inventory shortages and providing diverse housing options.

Real Estate Agent and Brokerage News

Local brokerages report increased interest from out-of-state migrants relocating from pricier West Coast cities like Seattle, Portland, and California. Joey Costello notes that the Spokane market is expected to experience heightened activity from February through summer, driven by this influx of new residents.

Property Tax and Regulation Updates

Currently, there are no significant property tax hikes in Spokane. However, local discussions continue around balancing growth with infrastructure needs. Efforts to streamline permitting for new developments are underway to expedite housing supply expansion.

Home Price Trends by Neighborhood

• Downtown and South Hill: These areas demonstrate stronger price appreciation and demand.
• Spokane Valley: Offers more affordable options with slower growth rates.

Rental Market vs Buying Market

Rental demand in Spokane remains robust, particularly near universities and downtown, fueled by a younger demographic and new residents. Meanwhile, purchasing remains a favorable option for long-term investment, despite rising interest rates.

Seasonal Market Patterns

Spokane typically experiences a slowdown in the housing market during winter months (December-January), with activity picking up from February through July. The peak period of activity usually occurs in late spring and early summer.

Population Growth and Demographics

Spokane's population continues to grow, driven by migration from larger West Coast cities. This demographic shift includes millennials, remote workers, and retirees, contributing to sustained housing demand.

Job Market and Economic Factors

Spokane's economy is bolstered by growth in the healthcare, education, and technology sectors, supporting housing demand and instilling confidence among investors.

Mortgage and Lending Conditions

Mortgage rates in Spokane have slightly decreased compared to 2024, encouraging buyer activity. First-time buyer programs and low down payment options are available, supporting entry-level buyers in their homeownership journey.

Conclusion

The downtown Spokane housing market in 2024-2025 is poised for steady growth, driven by increased inventory and moderate price appreciation. The city’s economic stability and appealing lifestyle continue to attract both local and out-of-state buyers. As the market evolves, it's critical for homebuyers, sellers, and investors to stay informed about local trends and work with experienced professionals like Joey Costello from Windermere Real Estate.

For those navigating the Spokane real estate market, consider reaching out to our trusted partners such as Spokane Rooter for sewer and drain services, Inspect Reports for home inspections, and Sewer Report for AI-powered sewer reporting.

Call to Action

Contact Joey Costello at Windermere Real Estate for expert guidance on Spokane's real estate opportunities.

Practical Tips for Spokane Area Homebuyers

• Consult with Local Experts: Work with knowledgeable real estate agents like Joey Costello.
• Leverage First-Time Buyer Programs: Explore available financial assistance and low down payment options.
• Monitor Market Trends: Stay updated on local market conditions and seasonal patterns.
• Consider Rental Investments: Evaluate the strong rental demand in downtown Spokane.

Contact Our Sponsors

• Joey Costello, Windermere Real Estate: For expert real estate advice.
• Spokane Rooter: For reliable sewer and drain services.
• Inspect Reports: For comprehensive home inspection solutions.
• Sewer Report: For advanced sewer reporting technology.