Spokane Housing Market Update – January 2026: A Two-Sided Market Explained

If you’ve been watching the headlines, you’ve probably heard two completely different stories about the Spokane housing market. One says prices are rebounding. The other says inventory is piling up. The truth is both are right.

We’ve officially closed the books on January 2026, and the data shows we are operating in a two-sided market. Some homes are moving quickly and selling near list price. Others are sitting, expiring, and quietly re-entering the market weeks later.

As the owner of the Halsted Home Team, my team navigated more than 70 transactions last year through this exact landscape. What we’re seeing now is not chaos. It is a reset. And if you understand how to read it correctly, there is real opportunity here.

Median Price Rebound: What the $415,000 Number Really Means

The median sales price for residential homes and condos in Spokane is now $415,000, up 2.7 percent year over year. That confirms something important: we have likely moved past the bottom of the market.

Back in early 2022, the median was around $390,000. It dipped in 2023, then began a slow, steady climb. What we are seeing now is not explosive growth. It is stabilization.

Many buyers are still waiting for another big price drop. But sellers in Spokane are not under major financial distress. Most are choosing to wait rather than take steep discounts. That dynamic is keeping the floor relatively firm.

The Quiet Crisis: Record Expired Listings

While prices are rebounding, expired listings have reached record levels. Nearly 700 homes expired off the market in December alone.

That means hundreds of families prepared their homes, handled showings, and ultimately did not sell. The difference between homes that sell and homes that expire is almost always pricing and strategy.

Homes that are priced correctly are selling at roughly 98 percent of asking price. Homes that are not are sitting for 60 to 90 days before expiring.

Honest guidance matters in this market. A true consultant should tell you what the data supports, not simply what sounds good in the moment.

Why It Now Takes a Six-Figure Income to Buy in Spokane

Affordability remains the biggest challenge in the Spokane market. Current data suggests a household income of roughly $100,000 is required to comfortably afford a median-priced home.

While mortgage payments have eased slightly compared to peak 2025 levels, buyers still face a higher entry threshold than they did pre-pandemic.

The good news is inventory has increased to over four months of supply, giving buyers more leverage than they have had in years. Instead of aggressive lowball offers, smart buyers are negotiating closing costs and rate buydowns that reduce monthly payments more effectively.

Inventory, New Listings, and What Comes Next

January brought more than 1,000 new listings to the market, many of which were previously expired properties returning for a second attempt.

Spokane does not have an oversupply problem like some large Sunbelt markets. Housing permits declined significantly in 2025, meaning new construction is not flooding the market.

That long-term supply constraint, especially in established areas like the South Hill, continues to support steady appreciation rather than dramatic swings.

What This Means for Sellers in 2026

If you are considering selling, this is a strategic window. Inventory typically increases in the spring, so early-year listings face less competition.

Success depends on precise pricing and proactive marketing. If you want to understand how your home fits into today’s data, start here:

Spokane seller resources

What This Means for Buyers in 2026

Buyers have more options than they did during the pandemic surge. However, that does not mean every home is discounted.

Well-priced properties are still moving quickly, sometimes with multiple offers. The key is identifying which homes are positioned correctly and which are overpriced.

To explore different areas and pricing tiers:

Browse Spokane neighborhoods

For buyers moving from out of state:

Relocation guide to Spokane

Final Thoughts: A Balanced but Strategic Market

Spokane in January 2026 is not a boom market and it is not a crash market. It is balanced, strategic, and unforgiving of poor pricing decisions.

At the Halsted Home Team, we believe clarity wins. Whether you are buying, selling, or relocating, you deserve a strategy built on current data, not outdated headlines.

If you would like to discuss your specific situation, reach out here: Contact Me