Spokane Real Estate Market Predictions: What Zillow and CoreLogic Forecast for 2025

If you're keeping an eye on the Spokane real estate market, you might be curious about what the future holds for home prices. Zillow just released their mid-year price predictions, and things look a little different from the boom we've seen in recent years. In this blog post, we'll break down the predictions from Zillow, CoreLogic, and other industry leaders, as well as check in on some of the forecasts I made earlier this year. Let's dive in.

Zillow’s 2025 Spokane Home Price Forecast

Zillow recently released its national home price forecast, predicting a modest 0.9% increase across the U.S. in 2025, with the average home price hovering around $366,000. However, when we zoom into Spokane, things look a bit more subdued.

Zillow predicts that Spokane’s home prices will increase by just 0.5% year-over-year, a stark contrast to the double-digit jumps we’ve seen in recent years. While this may seem low, it's a sign that prices are stabilizing rather than plummeting. If you’re a buyer wondering when prices will drop, this indicates that while they won’t rise rapidly, they're unlikely to drop significantly either.

CoreLogic’s More Grim Outlook

CoreLogic, another major player in real estate data, takes a more pessimistic view of Spokane’s housing market. They’ve listed Spokane as one of the top five markets most at risk for price declines in 2025. According to their data, there’s a 70% chance that home prices could decrease.

However, it’s important to put this in perspective. When people hear “price decline,” they might think of a sharp drop, but even a 0.5% decline could mean just a $2,000 difference on a $400,000 home—not exactly a massive drop.

What About Interest Rates?

Interest rates have been a hot topic lately. While many expected rates to climb higher, we've actually seen a drop in mortgage rates in recent months. Currently, rates are around 6.1% to 6.2%. Predictions from the Mortgage Bankers Association and Fannie Mae suggest that rates could trickle down slightly, ending 2025 at around 5.9%. However, this isn’t a huge change from where we are today, meaning we’re not likely to see much relief in terms of financing costs in the near future.

My 2024 Predictions So Far: A Mid-Year Check-In

At the start of the year, I made a few predictions about Spokane’s real estate market. Let’s see how they’re shaping up so far:

1. Interest Rates: I predicted rates would hold steady for the first half of the year and drop slightly by 0.5-0.75% by the end of the year. So far, rates have dropped from around 7.8% to 6.1%, and while the Federal Reserve rate hasn’t shifted much, mortgage rates have come down.

2. Closed Sales: I anticipated about 1,500 more homes would sell this year, but the actual increase has been modest—about 30 more homes closed year-to-date, reflecting a slow market.

3. Home Prices: I predicted a 4% increase in home prices for 2024, but so far, we’ve only seen about a 1.2% increase year-over-year.

4. Affordability: Unfortunately, I was right in predicting that affordability wouldn’t improve. Prices have remained relatively high, and interest rates haven’t dropped enough to make a significant impact on affordability.

5. Investor Activity: I expected investors to return to the market, but while there has been some activity, particularly with flippers, rental property investments have slowed due to high interest rates and low cash flow potential.

6. New Construction Prices: I predicted that new construction prices would hold steady, but they’ve actually dropped by over 10% since early 2023, bringing them closer in line with resale homes.

The Road Ahead: 2025 Predictions and What to Expect

Looking ahead to 2025, the general consensus seems to be that the market will stabilize, with modest price increases and relatively steady interest rates. Zillow predicts a 0.5% increase in Spokane home prices, while CoreLogic sees a potential decline, though likely a small one.

Interest rates are expected to hover around 5.9%, meaning we’re not likely to see a drastic improvement in affordability. For buyers, this could be a sign to stop waiting for major price drops and consider entering the market while things remain steady.

Let’s Talk About Your Plans

What are your thoughts on the real estate market for the rest of 2024 and into 2025? Are you planning to jump in now, or are you holding out for more favorable conditions? Let me know in the comments—I’d love to hear what’s on your mind.

If you’re thinking about moving to Spokane or want more detailed information about the market, feel free to reach out! Use the links below to schedule a meeting, download our relocation guide, or explore more resources. Thanks for reading, and I’ll see you in the next update!