Homes are Selling More Frequently and for Less Nationwide

Home sales are up. In February, total home sales in the U.S. rose 14.5% from the month prior. That jump ended a 12-month streak of declines in national home sales, and it’s the largest percent increase since July 2020. The sale of new construction homes has also increased, with numbers up for the third straight month in February.  Inventory, or the number of homes available on the market, is still low in most areas, and mortgage rates are still high—so why are home sales spiking now? While 14.5% feels like a large increase and does indicate a change in the market, it’s important to note that sales are still down year-over-year. Low affordability and low inventory drove sales down dramatically last year, so the increase we’re seeing now is more of a correction than a true spike.   Home prices are coming down. The National Association of Realtors also just reported that home prices have dropped 0.2% year-over-year. Less than one percent? Why does that matter? That number may not seem like a lot, but it’s significant because it’s a departure from a consistent stream of price increases. This is the first time in almost 11 years that home prices have shown an annual decrease. Does that mean the market is going to crash? Not quite. Driven by the ultra-low inventory and extreme demand of pandemic-era homebuying, home prices recently reached all-time highs. The current decrease is simply a correction from those sky-high prices, a relaxation of extremely tight market conditions—and a result of high mortgage rates. But what’s to prevent prices from continuing to drop—and even heading into crash territory? Inventory across the country remains low. There’s only a 2.6-month supply of homes in the U.S. at the current rate of sale, compared to the balanced-market benchmark of a 6-month supply. Additionally, mortgage rates are starting to come down, which will increase buyer competition. Generally, those two factors drive enough demand to prevent a severe drop in home prices. What does that mean for you? It depends on where you live, and whether you’re looking to buy or sell. In some regions, prices are dropping even faster while in others, prices are holding steady (or even continuing to climb).   Should you jump into the real estate market now? The answer to that question is complex and depends largely on your personal situation.  Overall, buyers should take advantage of slipping mortgage rates and dropping prices. If your finances are in order and you’re ready to buy your dream home, low inventory shouldn’t stand in your way—and if you have the right real estate agent, it won’t. Just remember, if you want to buy now, you’ll need to come in with a strong offer and be ready to negotiate. Selling a home? Let’s do it. As mortgage rates come down, buyers who have been sitting on the sidelines will jump in, and it will be easier for your real estate agent to find the perfect match for your property. Just remember, while most regions of the country still favor sellers and most sellers have seen their home values skyrocket, your expectation for your sale price should look a little different this year than it might have in 2021 or 2022. What’s the perfect price to attract buyers? Let’s talk about it.

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Understanding the Spokane Housing Market: What the News is Missing

  In today's world, the news is filled with sensational headlines about inflation, recession, and political scandals. But amidst all the noise, there's one market that continues to thrive - the Spokane housing market. In this blog post, we'll take a closer look at the concerns and misconceptions about the current state of the Spokane housing market and uncover what the news might be missing. Join me, Hayden, your local Spokane real estate expert, as we dive into the facts and insights that paint a clearer picture of the Spokane housing market.   First Quarter Price Drops Let's start by addressing the recent drop in home prices in Spokane. At the beginning of the year, we saw a 17% decrease, with home prices dropping from a high of $460,000 to $380,000. However, when we look at the year-over-year numbers, the decline is only about 6.5% from March 2022 to March 2023. This drastic change was mainly influenced by rising interest rates and uncertainty in the housing market. But since January 1st, we've seen a significant rebound, with home prices starting to rise again, experiencing almost an 8% increase, indicating a rapid change in the market.   Housing Shortage Issue So, what's driving the current trend in the Spokane housing market? It's all about supply and demand. Spokane is currently facing a severe shortage of about 25,000 units to meet the demand, and the number of homes actively listed on the market is less than 700, and it's trending downwards. This lack of supply has created a supply and demand issue, resulting in higher prices and a seller's market. To put it into perspective, in order for Spokane to shift to a buyer's market, we would need to see at least 3,000 homes actively listed, but currently, the market falls far short of that.   Months Supply of Inventory To further illustrate the supply and demand dynamics, let's look at the metric of "months supply of inventory". This measures how long it would take for all the homes listed on the market to be taken off by buyers. Currently, Spokane has only 1.5 months of inventory, which is significantly lower compared to the buyer's markets of 2013-2014 when Spokane had 5-9 months of inventory, indicating a much tighter market now.   So, what can we expect in the coming months? Based on the current supply and demand trends, the outlook for the spring and summer months in the Spokane housing market is likely to continue in the seller's market trend. Unless there is a major event that forces people to sell, it's unlikely to see a significant increase in inventory, which means the market is likely to remain competitive for buyers.   In conclusion, the Spokane housing market is facing unique challenges with low inventory and high demand, resulting in a strong seller's market. Despite the headlines and concerns in the news, the Spokane housing market has its own dynamics that need to be understood beyond the surface level. I hope this blog post has provided valuable insights and analysis for those interested in understanding the real estate market in Spokane. Let's stay informed and navigate the Spokane housing market with clarity and understanding.

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Reasons To Consider Condos in Your Home Search

If you're struggling to find a home that suits both your needs and budget, consider exploring the option of condominiums, also known as condos. According to Bankrate, condos can serve as an affordable entry point into homeownership, allowing you to build equity and access tax benefits that renters don't have. By expanding your search to include condos, you can increase your options and potentially find a more budget-friendly living arrangement. While condos may be smaller than single-family homes, they require less maintenance, giving you more time to focus on the things you enjoy. Additionally, many condos are located in or near city centers, providing convenient access to work and leisure activities. It's important to remember that your first home doesn't have to be your forever home. By starting with a condo, you can begin building equity and potentially use it to purchase a larger home in the future. Ultimately, choosing to live in a condo is a lifestyle decision that can offer added benefits and options in today's market. If you're interested in exploring condo living, reach out to a real estate professional for assistance in finding options in your area.

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