Understanding the Spokane Housing Market: What the News is Missing

In today's world, the news is filled with sensational headlines about inflation, recession, and political scandals. But amidst all the noise, there's one market that continues to thrive - the Spokane housing market. In this blog post, we'll take a closer look at the concerns and misconceptions about the current state of the Spokane housing market and uncover what the news might be missing. Join me, Hayden, your local Spokane real estate expert, as we dive into the facts and insights that paint a clearer picture of the Spokane housing market.

First Quarter Price Drops

Let's start by addressing the recent drop in home prices in Spokane. At the beginning of the year, we saw a 17% decrease, with home prices dropping from a high of $460,000 to $380,000. However, when we look at the year-over-year numbers, the decline is only about 6.5% from March 2022 to March 2023. This drastic change was mainly influenced by rising interest rates and uncertainty in the housing market. But since January 1st, we've seen a significant rebound, with home prices starting to rise again, experiencing almost an 8% increase, indicating a rapid change in the market.

Housing Shortage Issue

So, what's driving the current trend in the Spokane housing market? It's all about supply and demand. Spokane is currently facing a severe shortage of about 25,000 units to meet the demand, and the number of homes actively listed on the market is less than 700, and it's trending downwards. This lack of supply has created a supply and demand issue, resulting in higher prices and a seller's market. To put it into perspective, in order for Spokane to shift to a buyer's market, we would need to see at least 3,000 homes actively listed, but currently, the market falls far short of that.

Months Supply of Inventory

To further illustrate the supply and demand dynamics, let's look at the metric of "months supply of inventory". This measures how long it would take for all the homes listed on the market to be taken off by buyers. Currently, Spokane has only 1.5 months of inventory, which is significantly lower compared to the buyer's markets of 2013-2014 when Spokane had 5-9 months of inventory, indicating a much tighter market now.

So, what can we expect in the coming months? Based on the current supply and demand trends, the outlook for the spring and summer months in the Spokane housing market is likely to continue in the seller's market trend. Unless there is a major event that forces people to sell, it's unlikely to see a significant increase in inventory, which means the market is likely to remain competitive for buyers.

In conclusion, the Spokane housing market is facing unique challenges with low inventory and high demand, resulting in a strong seller's market. Despite the headlines and concerns in the news, the Spokane housing market has its own dynamics that need to be understood beyond the surface level. I hope this blog post has provided valuable insights and analysis for those interested in understanding the real estate market in Spokane. Let's stay informed and navigate the Spokane housing market with clarity and understanding.