Realtor.com Predicts MAJOR Price Drop in Spokane, WA in 2024

The anticipation surrounding the real estate market often mirrors the hopes and dreams of potential homebuyers and sellers. In a recent development, Realtor.com has released its housing market predictions for 2024, unraveling a mixed bag of expectations for various cities. One city that stands out is Spokane, making waves with an intriguing forecast. In this blog post, we will delve into the details, exploring the current scenario, the predictions made by Realtor.com, and the potential implications for both buyers and sellers.

Current Market Dynamics

As of the present moment, the real estate landscape is witnessing a notable shift. The speaker notes that interest rates have fallen below 7%, a phenomenon not observed in the past seven months. With conventional fixed-rate mortgage rates at 6.62% and FHA loans as low as 6.1%, there seems to be a favorable environment for potential homebuyers. The speaker emphasizes the importance of consulting with a lender to get accurate details.

Realtor.com's Predictions for Spokane

Realtor.com has presented price predictions for the top 100 real estate markets in the United States. Spokane is notably absent from the list of the top 10 markets with the largest increases. However, it has claimed the third position in the list of markets with the largest decreases. The prediction is a substantial 10% year-over-year drop in housing prices for Spokane in 2024. This raises questions about the potential consequences for homeowners and the overall market.

Impact Analysis

To understand the significance of a 10% drop, the speaker provides context by comparing it to the current average home price in Spokane, which is around $420,000. A 10% decrease would translate to a reduction of $42,000, bringing the average price to approximately $380,000. The speaker reflects on how this change aligns with the market's recent history and speculates on the factors driving these predictions.

Comparisons with Other Markets

Realtor.com draws parallels with Austin, Texas, highlighting it as an example of a housing market that experienced significant price surges during the pandemic. Despite projected declines in 2023 and 2024, Austin's prices are expected to remain 29% above pre-pandemic levels. Spokane, too, is expected to face a similar situation with prices potentially staying well above pre-pandemic levels despite a projected 10% drop.

Considerations for Homeowners and Buyers

The blog post explores the potential impact on different stakeholders. Homeowners who purchased between May 2021 and the present might face challenges if the predicted drop occurs. For buyers, the question arises: Is it wise to wait for a 10% price drop? The speaker shares insights into negotiating strategies in the current market, emphasizing the importance of considering factors beyond just the house price, such as interest rates and terms.

Red Fin's Mortgage Rate Predictions

Red Fin's forecast on mortgage rates for 2024 is introduced, suggesting a gradual decline. The speaker discusses the potential implications of falling interest rates on buyer behavior and the overall market dynamics.

Increased Home Sales and Inventory

Red Fin anticipates a significant increase in home sales in 2024, accompanied by additional inventory. Move-up buyers, motivated by lower mortgage rates, might contribute to this surge. The blog post discusses the potential consequences of this influx on the real estate market in Spokane.

In the grand scheme of things, the real estate narrative for Spokane in 2024 reads like a captivating story. It's not just about percentages and market trends; it's about the hopes, dreams, and decisions of the people making Spokane their home. As the rollercoaster of prices, rates, and choices unfolds, remember that your journey in the real estate world is more than a transaction—it's an exciting chapter in the story of your life. So, here's to navigating the twists and turns with enthusiasm and making the most of your real estate journey!