Zillow's 2025 Forecast vs. Spokane: What Homeowners Really Need to Know

Zillow recently released a new housing market forecast, and while it's getting national attention, the real question for Spokane homeowners is: what does it mean here?

In this post, we’ll break down Zillow’s latest projections, how they align—or don’t—with what’s happening in Spokane, and what steps sellers should take to navigate this shifting market.

Zillow’s Forecast at a Glance

Zillow projects an 8.8% increase in U.S. home prices between February 2025 and February 2026. They’re also forecasting 4.1 million existing home sales in 2025, up just 1.1% from 2024, which was one of the slowest sales years in the past decade.

What’s Actually Happening in Spokane?

Let’s take a closer look at our local data:

• Median sales price is $415,000—up 1.2% year-to-date.

• Home sales volume has increased 8.7% compared to this time last year.

• New listings are also up by 8.9%, giving buyers more options and creating more competition among sellers.

That means Spokane is moving at a very different pace than the rest of the country. We’re seeing more transactions, but price growth has been modest.

Why Are Prices Holding Steady?

Even with increased buyer activity, home values in Spokane haven’t climbed significantly because buyers have more leverage. With more homes on the market, many buyers are negotiating under asking price. This added inventory is keeping prices from rising rapidly, despite stronger sales volume.

Many sellers are still hoping to hit 2021–2022 prices, but those days are gone. On average, home values are still down 5% from those peak highs. Appraisals from that period may not reflect today’s true market value, especially if they were tied to HELOCs or refinances.

What This Means If You're Selling in 2025

If you’re planning to sell this year, Spokane’s market presents both opportunity and challenge. There are more buyers out there, but they have more homes to choose from. To stand out:

1. Enhance Your Home’s Appeal

Make the small updates—fresh paint, landscaping, minor repairs. Homes that show well are selling faster and for better prices.

2. Be Strategic About Pricing

Overpricing will only stall your sale. Work with a local agent who will show you real comps, not just base it on what your neighbor listed for two years ago.

3. Invest in Marketing That Works

Professional photography, virtual tours, and targeted online ads are no longer optional. You need to get your home in front of the right buyers—not just the most buyers.

4. Work with a Spokane Market Expert

Your agent should understand the local dynamics, from neighborhood-specific pricing to buyer demand. National data is helpful, but your pricing and strategy should be hyperlocal.

Bottom Line

While Zillow expects modest growth nationwide, Spokane’s real estate market is moving with its own rhythm. More homes are selling, but prices remain relatively flat. That makes your strategy more important than ever.

If you want help navigating these changes and positioning your home to sell in Spokane’s evolving market, I’d love to help. Reach out anytime for a personalized consultation.