Why Now Might Be the Smartest Time to Buy or Sell All Year

As the heat of summer starts to cool, so does Spokane’s housing market and the numbers tell a compelling story.

July Sees a Subtle Price Drop, But a Big Shift in Strategy

Spokane’s median sales price in July landed at $426,000, about $2,000 below June’s price, yet still up 1% from last July. But more importantly, the market itself is shifting. Active listings reached 3,367—bringing months of inventory to 4.8, the deepest supply pool we’ve seen since 2017.

The average home went pending in 21 days, but sellers are now netting around 98% of their final asking price—closer to 96% of their original list price. That gap means many are overpricing by $16,000–$20,000 right out of the gate, only to walk it back through reductions and negotiations.

Pricing Ahead of the Market (or Behind It)

Sellers still hoping to list above comps from spring are finding out quickly: the market is softening. Pricing too high today means sitting on the market, offering hefty concessions later, or worse—going stale without any showings at all. Right now, you need to price below comps from May and June. The upward momentum is gone.

Three Markets, Moving at Different Speeds

Spokane’s housing market isn’t one-size-fits-all. Homes under $400K—especially updated bungalows in neighborhoods like Hillyard and Logan—are flying off the shelf. One recent listing in Logan at $335K had nonstop showings and is expected to sell within the week.

Homes between $400K and $650K are sitting longer. With more options available, buyers are negotiating harder and taking their time. Market time here has stretched to about 33 days, and inspection credits are common.

In the luxury space ($1M–$1.5M), demand is light—but inventory is even lighter. One high-end home on Browne Mountain went pending in just 14 days at $1.35M. When the product is truly exceptional, it still moves fast.

Timing the Market? Watch the Days on Market

Back in 2021, buyers were told to pounce on homes that had been listed for 7–10 days—before 20 other offers rolled in. Today? The magic window is 15+ days. That’s when real negotiation begins. Buyers should prioritize homes that have been sitting, especially if they’re nearing 30 or 45 days on market. Sellers who haven’t budged by then are often ready to deal.

Interest Rates: A Window Could Be Opening

Rates ended July at 6.7%, but have already dipped closer to 6.5% in early August. A recent downward revision in jobs reports may signal even lower rates ahead—possibly under 6% by late Q4.

Each 0.25% drop in interest rates boosts buying power by about 3%, so the race to lock in a good rate before competition picks back up is real. Historically, February is when things heat up, as buyers rush back into the market after the holiday lull—while listings are still scarce.

Late fall and early winter could be a golden window for serious buyers willing to move in the snow. Fewer shoppers + more negotiating power + better rates = potential steals.

Big Negotiation Wins Are Back

Buyers have been winning big at the inspection table. Recent repair negotiations include:

• $28,000 for new HVAC and plumbing

• $8,000 for foundation repairs

• Entirely new sewer lines

• Brand new roofs

And those wins aren’t limited to resale homes. Some new construction communities—like D.R. Horton—are offering serious rate buy-downs. One community is advertising a 3.875% rate on a 7-year ARM, translating to $40K–$50K in savings over time.

Advice for Sellers: It's All About the Details

In a market this crowded, the difference between sold in a week and sitting for three months often comes down to prep. Touch up paint. Stage the space. Clean like it’s a model home. Don't give buyers a reason to hesitate.

Other smart seller incentives right now include:

• Prepaid HOA dues

• Home warranties

• Closing cost credits

These offer real value without broadcasting a price cut on Zillow.

No, This Isn’t a Bubble

Yes, prices are softening—but this isn’t 2008. Most sellers aren’t in distress. Foreclosures remain near record lows. If we were in a bubble, prices would be collapsing. Instead, what we’re seeing are ambitious listings being reeled back into reality.

The gap between demand and supply is wide—only 800 pending sales in a sea of over 3,300 active homes. That imbalance means opportunity, but not panic.

Bottom Line:
Buyers have a rare opportunity to negotiate repairs, secure credits, and shop with less competition. Sellers need to price aggressively, prep thoroughly, and understand that the highest offers come in the first two weeks—or not at all.

For those watching the market, don’t wait for a mythical crash. Watch the inventory. Watch the rates. And act before everyone else does.