Navigating Spokane's 2025 Housing Market: Trends, Insights, and Smart Strategies

The early months of 2025 have ushered in a dynamic shift within Spokane’s real estate landscape, necessitating a comprehensive analysis of the prevailing data and a strategic approach for both buyers and sellers. Let's delve into the intricate details of the market's current state and explore actionable advice for successful navigation.

Understanding the Numbers: A Look at Early 2025

As we move into March, the release of February's housing statistics provides a valuable snapshot of year-to-date trends. This data allows us to compare the current market with past years, revealing notable changes and patterns.

Median Price Trends:

• The current median home price in Spokane stands at $415,000. This figure is significant as it surpasses the initial months of 2022, a year recognized for its market peak. This indicates that 2025 has begun with higher prices than any year observed since 2018.
• The use of the median price is crucial for accurate market representation. Unlike the average, which can be skewed by extremely high or low sales, the median reflects the middle value, providing a more reliable indicator of typical home prices.

New Listings and Inventory Surge:

• A striking increase in new listings marks a significant trend, exceeding any year since 2018. This surge is partly attributed to an 8% increase over last year, translating to an additional 110 properties entering the market.
• The compounding effect of carry-over listings from 2024 further contributes to this surge. Homes that did not sell in the previous year are now being relisted, adding to the current inventory.
• Consequently, the active inventory has reached 1486 homes and condos, representing a 21% increase from the previous year. This substantial growth in available properties presents both opportunities and challenges for market participants.

Pending and Closed Sales:

• While new listings have surged, approximately two-thirds of these homes have transitioned to pending status, indicating accepted offers. The remaining one-third remains on the market, offering a variety of choices for buyers.
• The market has experienced increased activity compared to 2023, with more deals being finalized. This uptick in transactions suggests a renewed interest from both buyers and sellers.
• Closed sales have also seen an increase, with 738 homes sold so far in 2025, marking a nearly 5% rise from the previous year.
• The ratio of pending to sold transactions has remained relatively stable from 2024 to 2025. This consistency suggests that the market's overall feel has not drastically changed, although the volume of activity has increased.

The Impact of Increased Inventory

The substantial increase in inventory presents both opportunities and challenges for market participants.

Buyer Strategies:

• Prioritize Non-Negotiables: With a wider selection of homes available, buyers must define their essential criteria to avoid decision fatigue. Focusing on must-have features and location can streamline the search process.
• Avoid Over-Analysis: While thoroughness is important, viewing too many homes can lead to confusion and diminish the excitement of finding the right property. Aim to view homes that meet your predefined criteria.
• Act Decisively: In a competitive market, waiting too long can result in missed opportunities. Buyers should be prepared to act quickly when they find a suitable property.
• Leverage the Market: The increased inventory provides buyers with greater negotiating power. Don't hesitate to make offers below the asking price and request concessions.

Seller Considerations:

• Accurate Pricing: In a market with increased competition, accurate pricing is essential. Overpriced homes are likely to linger on the market, while competitively priced homes attract more attention.
• Property Condition: Homes in excellent condition are more likely to attract buyers and sell quickly. Sellers should address any necessary repairs or upgrades before listing their property.
• Preparedness for Negotiation: With more options available, buyers may be more inclined to negotiate. Sellers should be prepared to be flexible and consider reasonable offers.

Market Outlook and Predictions

The increased inventory is expected to exert downward pressure on home prices, potentially leading to a flattening of values. A return to the peak prices observed in May 2022 is unlikely in the near term.

Key Factors:

• Interest Rates: Interest rates continue to play a crucial role in shaping the housing market. Stability in the mid-to-low sixes would provide more certainty for buyers and sellers.
• Equity Recovery: Many homeowners are still working to regain equity lost during recent market fluctuations. This recovery is anticipated to be a gradual process, influenced by market conditions and interest rates.

To effectively navigate the complexities of this evolving market, both buyers and sellers must stay informed and adapt their strategies accordingly.