What’s Really Happening in the Spokane Real Estate Market (2025 Update)

If you’ve been watching the Spokane real estate market and feeling a little confused lately, you’re not alone. I hear it from buyers, sellers, and even other agents all the time.

Prices don’t look like they’re crashing, but homes aren’t flying off the market either. Some sellers are doing fine while others are taking major losses. Depending on who you talk to, Spokane is either “stalled” or somehow being called a top housing market for 2026.

So today, I want to slow things down and walk through what’s actually happening, using both real data and what we’re seeing on the ground right now.

Pricing Looks Stable — But That’s Not the Full Story

When you look at sold data, prices appear mostly sideways year over year. We haven’t seen major appreciation, but we’re also not seeing a meaningful drop.

On paper, that makes things look relatively stable.

But sold data only tells part of the story.

What it doesn’t show is the pressure happening in the active inventory.

What Active Listings Are Showing Right Now

We currently have listings priced 5–10% below what sellers paid in 2021 and 2022, and we’re still seeing very limited showings. These aren’t wildly overpriced homes — they’re simply struggling in today’s market.

At the same time, buyers are extremely selective.

What Buyers Are Negotiating

Right now, buyers are consistently negotiating:

• 5–10% total discounts
• Price reductions combined with seller-paid closing costs
• Credits for deferred maintenance and repairs

If you’re buying a home in Spokane, this is where strategy matters far more than headlines.

Seller Outcomes Vary — Even in the Same Neighborhoods

This is one of the first times in my career where I can say that sellers in the same neighborhoods are having completely different outcomes.

Some sellers who rode the COVID appreciation wave are still doing fine. They may not be getting what they thought their home was worth, but they’re not losing money. Others — especially those who bought in 2021 and 2022 — are losing tens of thousands of dollars.

If you’re selling a home in Spokane, pricing and positioning are everything right now.

Hope is not a strategy in this market.

Inventory Is Where the Real Story Lives

When you look at year-to-date numbers, something important stands out.

In 2017, Spokane had roughly 14,454 new listings and about 4,128 unsold homes. This year, we’re sitting at approximately 14,347 new listings, but more than 5,557 homes that didn’t sell.

The number of new listings hasn’t changed much — but the number of homes that failed to sell has increased significantly.

Why This Is Happening

Many sellers today are still anchored to 2021 pricing. When they don’t see immediate traction, they pull their homes off the market and plan to try again later.

This creates:

• Stop-and-start inventory
• Recycled listings
• Increased pricing pressure

Condition Matters More Than Ever

Buyers are moving quickly past anything that feels dated or deferred, including:

• Kitchens from the 1990s
• Roofs with limited remaining life
• Original windows or mechanical systems

Sellers may think these are “fine,” but buyers see future cost. In this market, buyers know they can wait.

Why Spokane Is Still Being Called a 2026 Housing Hot Spot

A recent National Association of Realtors report ranked Spokane as a top ten housing hot spot for 2026.

That does not mean explosive appreciation.

It means functionality and affordability.

Key Highlights from the Report

• About 34.3% of households are millennials
• Average first-time buyer age is now around 40
• Household income growth around 15.8%
• Prices have gone sideways while incomes have risen
• Job growth is modest but stable, anchored by healthcare, education, and regional employment

This helps explain why people relocating to Spokane continue to view this market as an opportunity.

For ongoing insights like this, you can follow our regular Spokane market updates.

Short Sales Are Starting to Appear

For the first time in my career here, I’m currently dealing with a short sale.

A short sale happens when a homeowner owes more on their mortgage than the home can realistically sell for, and the lender agrees to accept less to avoid foreclosure.

These situations are becoming more common for people who bought at peak pricing in 2021 and 2022.

For buyers, short sales can present opportunities — but they require patience, flexibility, and the right strategy.

This Is a Strategy Market

Whether you’re a buyer or a seller, this is not a market for guesswork.

• Sellers need realistic pricing and strong positioning
• Buyers need negotiation strategy and patience
• A broad price collapse is unlikely

If you’re moving into, out of, or within the area and want to talk through what this market means for you personally, that’s exactly what we do every day.

Contact Halsted HomeTeam to schedule a conversation.

Final Thoughts

This market rewards preparation, clarity, and strategy.

If you’re:

• Buying a home in Spokane
• Selling a home in Spokane
• Relocating to Spokane

The right plan makes all the difference.