National Housing Meltdown? Here’s What’s Really Happening in Spokane

Lately, headlines have been filled with panic: homes getting pulled from the market, buyers backing out, sellers sweating under pressure. The national housing market appears to be on shaky ground—but how much of that turbulence is showing up in Spokane?

Let’s dig into the national numbers first, then zoom in on what’s actually unfolding here at home.

What’s Going On Nationally?

One of the biggest red flags across the U.S. is a surge in home listings being canceled or withdrawn. Realtor.com reported a massive 47% increase in delisted homes in June compared to the same time last year. Year-to-date, listings are up over 34%, showing this isn’t just a short-term spike—it’s a trend.

At the same time, buyer behavior is shifting. Redfin noted that 14.9% of all pending home sales in June fell through—the highest cancellation rate for June since 2017. Buyers are getting cold feet, sometimes due to unexpected monthly payments, and sometimes because another home pops up mid-transaction that looks more appealing.

Inventory is also on the rise, with active listings up 29% year over year. Homes are now taking an average of 53 days to sell—five days longer than this time last year. Price-wise, things have remained fairly flat. Redfin is projecting a mild 1% national decline in home prices by the end of 2025, with mortgage rates hovering around 6.8%.

Spokane’s Market: Similar Storm, Different Forecast

Here in Spokane, some of the national trends are showing up—but the picture looks more balanced.

In June, 553 homes were either canceled, withdrawn, or expired without selling. That’s a 32.3% increase over the previous year. It’s a notable jump, but still below the national rate of 47%. It suggests sellers are feeling pressure, but they’re not in panic mode. Most homeowners in Spokane have strong equity and low mortgage rates, which gives them the freedom to wait rather than accept a poor offer.

Buyer cancellations, however, are higher than the national average. Spokane saw 144 homes fall out of contract in June out of 846 pending sales. That’s a 17% local cancellation rate—higher than Los Angeles, Phoenix, and nearly double Seattle’s rate of 8.9%.

Why the pullback? Simply put, buyers have more options. More listings mean more leverage. And with rising interest rates and inflation concerns, they’re being more selective.

Inventory Is Up—but That Doesn’t Mean Prices Are Crashing

Active inventory in Spokane has grown to nearly 3,100 homes, representing 3.9 months of inventory—one of the highest summer levels since 2016. While that’s a clear sign of a cooling market, sellers are holding steady. Instead of slashing prices, they’re staying firm, hoping to find the right buyer.

Currently, the median list price in Spokane is around $449,000—down 1.3% from last year. Meanwhile, the median sold price sits at $425,000, essentially flat compared to June 2023. Year-to-date, Spokane prices are up just 1.2%, mirroring the national average.

This tells a key story: the market is adjusting, but not collapsing. Sellers who price correctly and prepare their homes well are still seeing success. Homes that go under contract are doing so in a median of just 11 days—much faster than the national average of 53 days.

What Sellers Should Know

The days of listing your home on a Thursday and accepting multiple offers by Sunday may be over. But that doesn’t mean a sale is out of reach. Sellers need to be realistic. If showings are slow or offers aren’t coming in, it’s a sign to reassess the price, photos, staging, or even the timing.

The good news? Most Spokane sellers have options. With equity and low interest rates, there’s no rush to sell at a loss. Those who take the time to prep, price correctly, and market well are still landing strong deals—some going under contract in less than a week.

What Buyers Should Know

This is the most buyer-friendly Spokane market in years. There’s more inventory, less competition, and a return of negotiation power. Buyers are seeing more price reductions, more listings returning to market, and more sellers willing to make concessions.

That said, the best homes are still moving fast. The key is preparation—have financing ready and act quickly when a well-priced home becomes available. Many of the best deals are going to buyers who are watching closely and ready to move.

A Balanced Market in an Uncertain Time

Nationally, the housing market is in transition. Seller confidence is wavering, buyer cancellations are rising, and inventory continues to grow. But in Spokane, the situation is less extreme.

Sellers are adjusting without panicking. Buyers are cautious but active. And homes that are priced right and presented well are still selling quickly.

This isn’t a market of extremes. It’s one of balance—and opportunity. For both buyers and sellers who take the time to understand the landscape, there’s still plenty of room to make a smart move.