Three Factors Affecting Home Affordability in Spokane, WA

Home affordability is a concern for many prospective homebuyers in Spokane. While higher mortgage rates have been a cause for worry, there are other factors that determine home affordability as well. These include mortgage rates, home prices, and wages. Let's take a look at how these factors are impacting home affordability in Spokane.

#1 Mortgage Rates

Mortgage rates have risen since the pandemic, but they've been hovering between 6% and 7% for the past eight months in Spokane. While rates can be volatile, even a small change can affect your purchasing power. It's essential to stay up to date on the latest market trends and work with a team of real estate professionals to make informed decisions.

#2 Home Prices

Home prices in Spokane have appreciated rapidly in recent years due to increased buyer demand and limited supply. However, higher mortgage rates have slowed down the price appreciation. Additionally, home price changes can vary by location. In Spokane, the market is competitive, and home prices have continued to rise due to the high demand and limited supply.

#3 Wages

One of the most positive factors for home affordability in Spokane is rising income. Wages have been increasing over time, making homeownership more affordable. Higher wages reduce the percentage of income required to pay for a mortgage, which can make a significant impact on affordability.

In summary, home affordability in Spokane is determined by a combination of mortgage rates, home prices, and wages. While mortgage rates have risen, they are still relatively stable, and rising wages are making homeownership more accessible. If you're considering buying a home in Spokane, it's crucial to work with a trusted real estate professional who can provide local market insights and help you make informed decisions.