How Long Will Spokane Be Affordable?

The real estate market in Spokane has been on a rollercoaster ride since the start of the pandemic. From record high prices to a steep decline, the market has now rebounded and is on an upward trajectory. In this video, we will discuss the current state of the Spokane real estate market, the future of real estate prices, and how long the market will stay affordable.

Pre-Pandemic Spokane Real Estate Market

Prior to the pandemic, the average home price in Spokane was $275,000. However, as the pandemic progressed, prices skyrocketed, reaching a peak of $460,000 in May 2022.

The Decline in Real Estate Prices

As interest rates began to rise, prices dropped for seven straight months, hitting a bottom of $380,000 in January. This decline was short-lived, however, as prices have since bounced back up despite high interest rates and record low inventory levels.

Current State of the Spokane Real Estate Market

As of May 1st, the median home price in Spokane is $425,000, up 3.75% from the previous month and up 10% from the beginning of the year. Despite the high prices, inventory levels remain low, exacerbating the supply and demand issue.

The Future of Real Estate Prices

To predict the future trajectory of real estate prices, historical data must be analyzed. Prices typically peak in July and taper off until January, with each year's highest sales price occurring in July. It remains to be seen whether the market will hit a peak of $460,000 again this year or exceed it.

Buyer and Seller Activity

While prices have been increasing, the number of closed sales in Spokane has actually decreased. The pandemic has caused a drop in both buyers and sellers, with the buyer pool shrinking significantly. However, this has resulted in a lower number of transactions, causing the market to move quickly with competing offers still prevalent.

Despite the challenges faced by the Spokane real estate market during the pandemic, the market has rebounded and is on an upward trajectory. However, with high prices and low inventory levels, it remains to be seen how long the market will stay affordable. Buyers should carefully consider when to purchase a home, as prices are likely to continue to rise in the coming months.