Why is it So Hard to Buy a Home in Spokane?

  Feeling like it's impossible to buy a home in Spokane, Washington? You're not alone. Let's break down the numbers to understand why and explore some potential relief in the future.   Economic Overview In 2021, home prices were already high, but the situation has only worsened. According to economist Matthew Gardner, the annual income required to afford a home has significantly increased from 2021 to 2024, exacerbated by rising interest rates. Supply and Demand Issues The primary reason prices haven't dropped is due to supply and demand. There's a low supply of housing despite high demand. Even with high prices and interest rates, buyers are still active. Well-priced, desirable homes sell quickly, while others languish on the market. Current Market Conditions For those ready to buy, this could be an opportune time. There's less competition, and sellers are more willing to negotiate. This dynamic may change if interest rates drop, bringing more buyers into the market and potentially driving prices up again.   Home Price Trends In Q1 2021, the average home price in Spokane was $350,000. By 2022, it rose to $425,000. Despite a temporary drop to $407,000 in 2023, prices have rebounded to $426,000 in 2024. While prices have stabilized, interest rates have nearly tripled, making homes less affordable. Increased Costs Higher home prices mean higher down payments and closing costs. Additionally, the cost of maintaining a home has risen. From 2021 to 2024, the average monthly cost for maintaining a home increased from $565 to $686. Principal and Interest Payments In 2021, the average monthly mortgage payment was $1,400. By 2024, this has increased to $2,230, largely due to higher interest rates. Other costs, such as property insurance and taxes, have also risen, making homeownership even more expensive.   Income Requirements In 2021, an average income of $76,000 was sufficient to afford a home. By 2024, this figure has jumped to $130,000. This assumes 31% of income goes towards housing payments and 12% towards other debts, resulting in a 43% debt-to-income ratio. Future Projections While interest rates might drop, leading to increased affordability, home prices are expected to remain relatively flat. The hope is for a more balanced market, but drastic price reductions are unlikely. Strategies for Potential Buyers To afford a home in this market, potential buyers need to save more, reduce debt, and explore grant opportunities for down payments. Reach out to local nonprofits and credit unions for assistance.   Buying a home in Spokane is challenging, but understanding the market dynamics can help you navigate these difficulties. Prepare financially and stay informed to increase your chances of finding the right home.

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Ranking Spokane's Neighborhoods by Affordability

  Narrowing down your home search? Let's explore the most popular neighborhoods in Spokane, ranked from the cheapest to the most expensive, to help you find the perfect area for your new home. Airway Heights Average Price: $373,995Airway Heights, located just west of Spokane, offers affordable new construction and manufactured homes. This area is primarily entry-level new construction and older manufactured homes, contributing to its lower average price. Millwood Average Price: $392,500Millwood, a small section of Spokane Valley, is known for its older homes and quaint community feel. It's a compact area with some charming amenities, though it lacks sidewalks and has busy roads like Argonne. City of Spokane Average Price: $396,000Spokane features diverse neighborhoods with varying price points. While areas like Eagle Ridge and parts of South Hill are pricier, large sections of Northeast and Northwest Spokane offer more affordable housing options. Deer Park Average Price: $406,000Deer Park is known for its newer homes and larger properties. The city itself is small, but the surrounding area includes many homes on acre-plus lots, providing a more rural feel.   Cheney Average Price: $416,000Cheney, southwest of Spokane, is home to Eastern Washington University. The area is largely rural, with a mix of residential properties and natural features like the Turnbull National Wildlife Refuge. Elk Average Price: $425,000Elk, north of Spokane, offers remote and quiet living with lots of trees and space. It's ideal for those seeking privacy and a connection to nature, while still being equidistant to Newport and North Spokane. Medical Lake Average Price: $437,750Medical Lake is a growing area with a mix of new construction and older properties. It's known for its numerous lakes and wetlands, and it has been significantly impacted by recent fires, leading to ongoing rebuilds. Spokane Valley Average Price: $438,000Spokane Valley is slightly more expensive than Spokane, featuring newer and larger homes. It’s more suburban and commercialized, lacking some of the charm of older Spokane neighborhoods but offering modern amenities.   Mead Average Price: $452,000Mead is a blend of older and newer homes, with a strong school district. It includes various suburban neighborhoods and rural properties, making it a versatile option for families and individuals. Rockford Average Price: $480,000Rockford is a rural area south of Spokane Valley, known for its large properties and scenic landscapes. It’s further from downtown Spokane, making it ideal for those seeking a quiet, country lifestyle. Chattaroy Average Price: $535,000Chattaroy, located between Colbert and Elk, offers a balance of proximity to Spokane and rural tranquility. It features a mix of residential properties and large parcels of land. Liberty Lake Average Price: $535,500Liberty Lake is a rapidly growing area with new developments like the River District. It offers a mix of luxury homes, suburban neighborhoods, and recreational amenities, making it a popular choice for families.   Green Acres Average Price: $550,000Green Acres, part of Spokane Valley, features a mix of suburban and rural properties. It’s known for its larger lot sizes and newer developments, feeding into the desirable Ridgeline High School. Mica Average Price: $580,000Mica, a rural area south of Spokane Valley, offers large properties and a peaceful environment. It’s ideal for those looking to live on land while still being within driving distance of Spokane’s amenities. Newman Lake Average Price: $590,000Newman Lake is a scenic area along the Idaho border, featuring properties around the lake and wooded areas. It’s perfect for those seeking a tranquil lakeside lifestyle with easy access to outdoor activities. Colbert Average Price: $600,000Colbert, north of Spokane, is known for its residential neighborhoods and proximity to the Little Spokane River. It features a mix of suburban homes and larger properties, with strong community ties.   Nine Mile Falls Average Price: $650,000Nine Mile Falls, northwest of Spokane, is a close-knit community with beautiful natural surroundings. It offers a mix of properties, from suburban homes to large rural parcels, and is known for its community spirit. Valleyford Average Price: $1.13 millionValleyford, south of Spokane, features luxury homes on expansive properties. It’s an exclusive area with high-end real estate, making it a preferred choice for affluent buyers seeking privacy and scenic views. These neighborhoods offer a range of options to suit different budgets and lifestyles. Whether you're looking for affordable new construction, charming older homes, or luxury properties, Spokane has something for everyone. Explore these areas to find your perfect home in Spokane. Thank you for exploring Spokane's neighborhoods with us. Find the area that fits your lifestyle and budget, and enjoy your new home in this vibrant community!

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The Most Walkable Neighborhoods in Spokane

  Exploring walkable neighborhoods in Spokane? Whether you're a current resident or considering a move, discover the best neighborhoods where you can enjoy the convenience of walking to local amenities. Here's a guide to the most walkable areas in Spokane.   South Hill: Comstock Neighborhood The Comstock neighborhood, specifically the area from 29th Avenue to 44th and Perry to Bernard, offers fantastic walkability. With local amenities such as Remedy restaurant, Starbucks, and the Rocket Market, residents have easy access to dining and shopping. Schools like Jefferson Elementary and Sacajawea are also within walking distance, making it perfect for families. Housing options range from 1950s bungalows priced around $350,000 to $560,000, with larger homes near Comstock Park reaching up to $700,000.   Manito Neighborhood Situated around Wilson Elementary School, the Manito neighborhood is another highly walkable area. It's close to both Comstock and Manito Parks, offering abundant green space. Homes here range from $450,000 to $700,000, featuring older, well-maintained craftsman-style properties. Local amenities include Scoop Ice Cream, Rose Hours grocery store, and Bandidos Pizza, making it a family-friendly and convenient neighborhood.   Perry District The Perry District, located on the east side of South Hill, is known for its quirky small businesses and vibrant community events. With boutiques, barber shops, Perry Street Brewing Company, and the popular Perry Street Farmers Market, this area offers a unique, walkable lifestyle. Home prices vary from the mid $300,000s to over $600,000, depending on the size and condition of the properties. The district's charm and community feel make it one of Spokane's most desirable neighborhoods.   Audubon Downriver Neighborhood The Audubon Downriver neighborhood in Northwest Spokane is another walkable gem. Residents enjoy proximity to Audubon Park, Finch Elementary, and local cafes like Little Garden Cafe and Flying Goat Pizza. Although grocery stores are a short drive away, the neighborhood's tree-lined streets and community vibe make it an attractive option. Homes here offer a range of prices and styles, ensuring something for everyone. Spokane's walkable neighborhoods provide a variety of options for those seeking convenience and community. Whether you're looking for the family-friendly atmosphere of South Hill, the vibrant Perry District, or the charming Audubon Downriver area, Spokane has something to offer. Explore these neighborhoods and find the perfect fit for your lifestyle.

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