By Haydn Halsted — Halsted Hometeam, REAL Broker, LLC · (509) 570-2482

The 30-year mortgage rate averaged 7.40% on October 8. That’s the highest weekly reading since November 2023 and the seventh weekly increase in a row, according to Freddie Mac. A year ago, the same loan averaged 6.30%.

That one number explains a lot of what I watched happen in Spokane through September. Every month I pull the closed sales from the Spokane MLS myself before writing this update, because the free real estate sites don’t agree with each other. This month, the Spokane medians posted online ranged by more than $100,000. Here’s what the actual closed sales say, and what I think it means if you’re moving into, out of, or across Spokane this fall.

What Happened in the Spokane Housing Market in September 2026?

September is when Spokane’s market changes gears. School is back in session, weekend showing schedules thin out, and sellers who missed the summer window start deciding whether to list now or wait for spring.

This year, 647 homes closed in Spokane County in September, up from 584 in September 2025. Active inventory averaged 2,353 listings for the month, which works out to 3.6 months of supply, down from 3.9 a year ago. The softer signal is new contracts: 547 homes went pending in September, down from 666 in August, as rates kept climbing.

The national numbers line up with what agents here have been feeling. The National Association of REALTORS reported September existing-home sales rose 1.5% from August to a 3.99 million annual pace, but August and September were still the two slowest months for sales nationwide in 2026. National inventory climbed to 1.60 million homes.

Are Spokane Home Prices Going Down?

No. The September median sold price in Spokane County was $425,000, the same as August and essentially identical to September 2025 ($424,998). Prices aren’t falling. They’re holding.

A median can mislead in a month like this one. If more homes under $400,000 close and fewer homes over $700,000 close, the median drops even when no individual home lost value. That’s why I read it next to price per square foot and the sale-to-list ratio. Price per square foot was $220.89 in September, down about 2% from $225.48 a year earlier, so there’s a little softness under the flat median.

September’s sale-to-list ratio was 99.0%, the same as last September. In plain terms, the typical Spokane seller got about 99% of their final asking price, or 96.8% of their original price once price cuts are counted. About a quarter of September sales (25.2%) closed above list. For comparison, NAR reported national prices up 1.3% year over year in September.

How Long Are Spokane Homes Taking to Sell Right Now?

Homes that closed in September spent a median of 26 days on market, compared to 21 in September 2025. From list date all the way to closing, the median was 63 days, up from 58.

The countywide number hides a split by area. Spokane Valley sat at 3.0 months of supply in September, while Liberty Lake sat at 5.8. The other tell is listings that never sell: 474 Spokane County listings expired or were withdrawn in September, up from 423 a year earlier.

How Do 7.4% Mortgage Rates Change the Math for Spokane Buyers?

Here’s what the rate move looks like on a real payment. On a $350,000 loan, principal and interest at last year’s 6.30% average comes to about $2,166 a month. At 7.40%, the same loan is about $2,423. That’s roughly $257 more every month for the same house.

That math is a big part of why buyers have slowed down, and why some of them are negotiating harder. It’s illustrative only, not a rate quote. Your rate depends on credit, down payment, and loan type, so talk with a licensed loan officer before you run your own numbers.

For relocation buyers coming from California or Seattle with equity, the rate matters less than it does for a first-time buyer. A bigger down payment shrinks the loan the rate applies to. That shows up in the numbers: cash purchases made up 20.6% of Spokane County sales in September, up from 16.3% a year earlier.

Spokane vs Seattle: How Do the Two Washington Markets Compare This Fall?

Both sides of the state felt the same rate increase, but they started from very different price points. Across the Northwest MLS, which covers most of Western Washington, the September median sales price was $625,000, compared to Spokane County’s $425,000. That gap is the main reason Western Washington owners keep showing up in my relocation consultations.

The difference comes down to land and housing stock. Spokane has more buildable land at the edges of the metro, more older homes on standard city lots, and new construction that’s still being built at the edge of town in places like Liberty Lake and the rural north county. In September, new construction made up 20% of Liberty Lake sales and 39% of rural north county sales, compared to under 5% inside the City of Spokane.

If you’re at the point where the math matters more than the browsing, the next step is knowing what your place is actually worth today. You can check current Spokane home values before you make any decisions about timing or repairs.

Is Spokane a Buyer’s Market or a Seller’s Market in October 2026?

A common rule of thumb says that under about four months of supply favors sellers, four to six months is balanced, and over six months favors buyers. Spokane County sat at 3.6 months in September, which still puts us on the seller’s side of that line.

My read: sellers still have a slight edge, but it’s thinner than the label suggests. Days on market are up, price per square foot is down 2%, and 42% of the listings that left the market in September expired or were withdrawn instead of selling. Countywide labels also blur the areas. The West Plains was at 3.0 months and the City of Spokane at 3.5, while the rural north county was at 4.2 and Liberty Lake at 5.8.

What You Should Know About the Spokane Market Before You Sell This Fall

Spokane Housing Market FAQ for October 2026

More Spokane Market Reads

This Spokane housing market update for October 2026 covers September’s closed sales, median sold price, days on market, and months of supply across Spokane County, along with how 7.4% mortgage rates are shaping buyer activity on the east side of Washington. It also compares Spokane home prices with the Seattle area and walks through what sellers on the South Hill, the North Side, and out toward Liberty Lake should plan for as the fall listing season winds down.