Here's Why Pre-Approval is Important

If you're planning on buying a home in Spokane this spring, you may be feeling the effects of the current housing market. The limited inventory and higher mortgage rates can make finding the right house a challenge. That's why it's crucial to have a firm understanding of your homebuying budget. One way to prepare is by getting pre-approved.   What is pre-approval, and why is it important? Essentially, pre-approval involves a lender reviewing your finances to determine how much money they would be willing to lend you. They will then provide you with a pre-approval letter, which outlines the maximum amount you can borrow.   Getting pre-approved is an important first step in the homebuying process, especially in a competitive market like Spokane. With limited inventory, it's essential to act quickly when you find the perfect house. Pre-approval gives you a head start by letting you know exactly how much you can afford to spend. This knowledge will help you make more informed decisions about which homes to consider and what offers to make.   Additionally, pre-approval can show sellers that you're a serious buyer. With the current market conditions in Spokane, where homes are selling quickly, having a pre-approval letter can give you an edge over other buyers. It shows that you're committed to buying a home and have taken the necessary steps to secure financing.   If you're considering buying a home in Spokane this spring, it's important to work with a local real estate professional and a trusted lender. They can help you navigate the homebuying process and provide valuable insights into the local market. With their guidance and a pre-approval letter in hand, you'll be well-equipped to find and secure your dream home in Spokane.

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How Long Will Spokane Be Affordable?

  The real estate market in Spokane has been on a rollercoaster ride since the start of the pandemic. From record high prices to a steep decline, the market has now rebounded and is on an upward trajectory. In this video, we will discuss the current state of the Spokane real estate market, the future of real estate prices, and how long the market will stay affordable.   Pre-Pandemic Spokane Real Estate Market Prior to the pandemic, the average home price in Spokane was $275,000. However, as the pandemic progressed, prices skyrocketed, reaching a peak of $460,000 in May 2022.   The Decline in Real Estate Prices As interest rates began to rise, prices dropped for seven straight months, hitting a bottom of $380,000 in January. This decline was short-lived, however, as prices have since bounced back up despite high interest rates and record low inventory levels.   Current State of the Spokane Real Estate Market As of May 1st, the median home price in Spokane is $425,000, up 3.75% from the previous month and up 10% from the beginning of the year. Despite the high prices, inventory levels remain low, exacerbating the supply and demand issue.   The Future of Real Estate Prices To predict the future trajectory of real estate prices, historical data must be analyzed. Prices typically peak in July and taper off until January, with each year's highest sales price occurring in July. It remains to be seen whether the market will hit a peak of $460,000 again this year or exceed it.   Buyer and Seller Activity While prices have been increasing, the number of closed sales in Spokane has actually decreased. The pandemic has caused a drop in both buyers and sellers, with the buyer pool shrinking significantly. However, this has resulted in a lower number of transactions, causing the market to move quickly with competing offers still prevalent.   Despite the challenges faced by the Spokane real estate market during the pandemic, the market has rebounded and is on an upward trajectory. However, with high prices and low inventory levels, it remains to be seen how long the market will stay affordable. Buyers should carefully consider when to purchase a home, as prices are likely to continue to rise in the coming months.

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First-Time Home Buying Dos and Don'ts in Spokane

What are some dos and don'ts for buying a home for the first time in Spokane? If you're a first-time homebuyer in Spokane, there are some dos and don'ts you should keep in mind:   Dos:   Research the neighborhoods: Spokane has several unique neighborhoods, each with its own distinct personality. Do your research to find the one that suits your needs and budget.   Consider your budget: Determine your budget before you start looking for a home. Factor in expenses such as utilities, taxes, and insurance to ensure you can afford the monthly payments.   Get pre-approved for a loan: Getting pre-approved for a loan can make the buying process smoother and less stressful. It also gives you an idea of what you can afford and can help you narrow down your search.   Work with a local real estate agent: A local real estate agent can provide valuable insight into the Spokane housing market, help you find homes that meet your needs, and negotiate the best deal on your behalf.   Don'ts: Ignore potential issues: When buying a home, it's essential to thoroughly inspect the property to identify any potential issues or hidden costs. Don't overlook things like structural damage, water damage, or mold.   Make emotional decisions: Don't let emotions cloud your judgment when buying a home. It's important to be objective and logical to avoid making costly mistakes.   Overextend yourself: Avoid overextending yourself financially. Be realistic about your budget and only consider homes within your means.   Skip the inspection: Skipping the inspection is a mistake many first-time homebuyers make, but it can lead to costly repairs down the line. Always insist on a thorough inspection before finalizing the purchase.   In conclusion, buying a home for the first time in Spokane requires careful consideration and planning. Research the neighborhoods, determine your budget, and work with a local real estate agent to find the right home for you. Don't ignore potential issues, make emotional decisions, overextend yourself, or skip the inspection. With these dos and don'ts in mind, you can make a confident and informed decision when buying your first home in Spokane.

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