Spokane’s Housing Market Isn’t Crashing—But Something’s Definitely Shifting

A Subtle Shift That Buyers and Sellers Need to Watch

There’s no crash happening in Spokane’s housing market. Prices aren’t plunging like in parts of Texas or Florida. But a quiet shift is underway—one that could reshape how both buyers and sellers need to operate. It’s not the kind of change that makes headlines, but it’s altering the dynamics in very real ways.

Right now, inventory is climbing when it would normally start tapering off. As of this fall, Spokane County has 2,235 active residential and condo listings—a 28% increase from last year. We’re at 3.7 months of inventory, up from 2.9 months just a year ago. That’s a big signal we’re moving from a seller’s market into more balanced territory.

Listings Are Up—But So Are Sales

Despite the rise in homes for sale, the number of closed sales has increased too. With 5,836 homes sold so far this year, that’s a 2.5% gain. But homes are taking longer to sell, with days on market now averaging 25 compared to 17 last year. The sale-to-list ratio is flat at 96.6%. Sellers don’t have as much leverage anymore, and the homes that do sell quickly are the ones that nail pricing and presentation.

Breaking It Down by Area

City of Spokane:
The median home price sits just under $409,000, up 2.2% year-over-year. Inventory is up 21% at 3.3 months. New listings are up 11%, but that’s outpacing the 3.5% rise in closed sales. Sellers who price based on past comps rather than current competition are getting stuck. One example—an updated rancher on Wabash—received three offers in three days by pricing smart and focusing on strategy.

Spokane Valley:
The Valley is holding steady, with a median price of $449,000, up 2.3%. Inventory has shot up 70% to 3.7 months, and while listings are slightly up, sales remain flat. Buyers are more cautious here. They want space and value but aren’t rushing. There’s no panic—just a slower, more measured market.

Liberty Lake:
This is where cooling is most evident. Median price has dropped 6.4% to $515,000. Inventory is up 37% and sales are down 4%. Builders offering incentives are making it hard for resales to compete. Homes priced emotionally rather than strategically are sitting for months.

West Plains:
Including Airway Heights, Medical Lake, and out to Davenport, this area is quietly picking up steam. Median price is $400,000 (up 2.6%) and sales are up 2%. Inventory is up only slightly. With local businesses expanding—like Taglio Sandwich Co. opening in Airway Heights—people are investing in this area’s future.

North Spokane (Mead, Colbert, Deer Park):
Here, the slowdown is real. Median price is $490,000, up 3.3%, but supply has jumped to 6.5 months—a 73% increase. Even well-priced homes are struggling to draw interest. Once builder inventory thins out or rates improve, this area is likely to bounce back.

New Construction Pullback Signals a Future Tightening

Building permit values in Spokane have dropped dramatically—down 44% year-over-year, according to the Journal of Business. Only 572 housing units have been permitted this year, compared to 1,211 last year. Single-family permits have fallen by nearly half. And there hasn’t been a single mixed-use project permitted so far in 2025.

That’s significant. While resale listings are rising now, the future pipeline is drying up. This could lead to another supply crunch in 2026 and beyond.

A Labor Market That Looks Fine—But Isn’t

The chief economist at Spokane’s Economic Forecast Office noted something interesting: job data may look okay, but underneath, the market is shaky. Without healthcare hiring, Spokane’s job growth would be negative. Many businesses have paused hiring, which is why it feels like it’s harder to land a job, even if unemployment rates look stable. And historically, when business confidence dips, housing tends to follow.

Stories from the Field

Real sellers are facing real challenges. One refused to make repairs and turned down a nearly full-price offer—now their home’s been sitting for months. Another seller had an offer fall through due to a 10% low appraisal. We were able to negotiate the buyer up $16,000 above the appraised value, but it took effort, and the seller still had to compromise.

Appraisers are clearly seeing the market as softening. Sellers hoping to beat the market need to align their expectations with today’s buyer reality—or risk missing their window.

So What’s Really Happening?

Spokane’s market isn’t crashing. It’s correcting, recalibrating, and rebalancing. Inventory is up. Sales are steady. Prices are mostly holding. But sellers can no longer rely on outdated comps or inflated expectations. It takes strategy, flexibility, and accurate market reading to win right now.

The Bottom Line

This kind of correction is a good thing. It’s what keeps the market healthy and sustainable over time. Buyers have a little more breathing room, and sellers still have demand—if they play it right.

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