Spokane Housing Market Update | November 2023

In the ever-changing landscape of the housing market, staying informed is crucial for both buyers and sellers. Today, we delve into the Spokane real estate scene, breaking down the numbers to provide you with valuable insights. From median sales prices to inventory trends, we aim to equip you with the knowledge needed to navigate this dynamic market effectively.

Median Sales Price Fluctuations

In October, the median sales price in Spokane experienced a nominal decrease, aligning with typical market fluctuations. A notable trend emerges when comparing data from 2022 to 2023, revealing more dramatic price changes over this period than in the past eight years. The current median price stands at $413,000, showing a 25% decrease from the previous month and a marginal drop of just under 1% year over year. Homebuyers who made purchases between March and September 2022 may witness a decrease in home value, potentially lasting one to two years.

Interest Rates and Market Dynamics

Interest rates recently decreased, providing a positive shift from 8% to around 7.35%, with FHA and VA loans benefiting from rates around 6.8%. Despite favorable interest rates, home prices are not dropping significantly due to a scarcity of new listings. October saw 744 new listings, a 25% decline from the previous month. However, active inventory has risen to 1,334, up nearly 3.5% from last year.

Unsold Listings and Market Dynamics

The number of unsold listings, those that expired without a sale, is a key indicator of market challenges. A surge in unsold listings, reaching levels not seen since 2017, suggests sellers may be pricing homes based on historical data, failing to adapt to the evolving market.

Days on Market and Pricing Strategies

The average days on market is currently 21 days, but this varies across price ranges. Homes in the $300,000 to $399,000 range sell in just under three weeks, while those in the $400,000 to $499,000 range take longer. Sellers need to adjust pricing strategies, considering the current market dynamics to avoid prolonged listings.

Cash Sales and Affluent Buyers

A notable shift is observed in cash sales, especially in the higher price brackets. Affluent buyers are opting to purchase homes with cash to avoid monthly liabilities, demonstrating a cautious approach to the economic climate.

Negotiation Leverage and Buyer's Market

Some segments of the market are transitioning into a neutral or buyer's market, evidenced by an increasing inventory, particularly in the $500,000 to $750,000 range. Sellers may need to adjust their expectations, as buyers gain leverage with approximately six months of inventory in these price ranges.

Percent of List Price Received

Homes in the $200,000 to $300,000 range are selling above asking price, while those in the $500,000 to $750,000 range are selling at approximately 99% of the asking price. Buyers may find opportunities for negotiation, especially for properties that have been on the market for an extended period.

In conclusion, the Spokane housing market is experiencing shifts in pricing, inventory, and buyer-seller dynamics. Both buyers and sellers should carefully consider the current trends and adapt their strategies accordingly. With transparency and proactive engagement, individuals can make informed decisions in this evolving real estate landscape. Whether you're contemplating a sale or on the lookout for your dream home, understanding these market nuances will be instrumental in achieving your real estate goals.