Is the Spokane Housing Bubble About to Burst?

  Another month has passed, and it's time to delve into the latest numbers for the real estate market in Spokane, Washington. The market has been on a rollercoaster ride recently, with fluctuating interest rates and prices. If you're considering buying or selling in Spokane, it's essential to stay informed about the current conditions. I'm Hayden Halstead, your trusted real estate resource, here to provide you with the most up-to-date information on the Spokane housing market.   Market Volatility Interest Rate Fluctuations: The real estate market in Spokane has witnessed significant fluctuations in interest rates. Within the span of a week, rates have been known to swing by half a percent or more, causing considerable uncertainty. Impact of High Interest Rates: High-interest rates can have a profound impact on affordability, especially in a market where even a quarter-percent increase can significantly affect monthly mortgage payments. Affordability Concerns: Affordability remains a hot topic, with many wondering if we're on the brink of a housing bubble. However, it's crucial to note that the current situation differs from the 2008 housing crash.   August Market Snapshot Median Sales Price: In August, the median sales price for homes in Spokane was $430,000, reflecting a 1.1 percent decrease from the previous month and a 1.1 percent decrease from the previous year. These numbers raise questions about whether we've hit the peak for 2023. Trends Compared to Previous Months: Historically, house prices tend to dip around this time of year, with a slight bump in October before the market cools in November and December. September sees a last-minute surge before winter sets in.   Activity Levels Number of Closed Sales: August saw 573 closed sales, a 22.5 percent drop compared to the previous year but a 4.5 percent increase from the previous month. This suggests a potential one-month increase or a plateau before winter sets in. Month-to-Month and Year-to-Year Comparisons: Market activity levels are holding steady, with little dramatic movement. It's essential to note that this is not causing a decline in home prices but is more about a slowdown in real estate transactions.   Housing Market Stability Differentiating from the 2008 Crash: The current housing market's stability differs from the 2008 crash, where easy access to credit caused the bubble to burst. Today, stringent lending regulations make it harder to secure loans, resulting in more responsible homebuyers. Foreclosure Rates: Foreclosure rates remain low, with only minor increases compared to the 2008 crash. The key indicator to watch is the jobs report, which will determine whether homeowners can continue meeting their mortgage obligations.   Interest Rates Monthly Interest Rate Trends: Interest rates have been volatile, with August being the highest-interest rate month in the last 18 months. Rates have exceeded 7 percent and even touched 7.8 percent for some conventional loans. The Outlook for Interest Rates: Experts predict a potential drop in interest rates in the coming months, with estimates ranging from 5.9 percent by the first quarter of 2024 to 6.2 percent in the last quarter of 2023.   Creative Real Estate Strategies House Hacking: Creative real estate strategies like house hacking are gaining popularity, allowing homeowners to reduce their monthly expenses by renting out spare rooms or portions of their property. Innovative Real Estate Solutions: Creative approaches to real estate are becoming more prevalent due to high-interest rates and housing prices compared to average incomes. These innovative solutions offer ways to optimize investments.   Manufactured Home Community Land Ownership Current Housing Shortages: Washington faces a severe housing shortage, projected to reach one million units by 2040. The speed at which manufactured homes and communities can be developed presents an opportunity to address this issue. Government Initiatives: Legislative initiatives are being proposed, such as giving tenants in manufactured home communities the chance to collectively purchase the land they occupy. This could create opportunities for affordable housing solutions. Pros and Cons of Community Ownership: While this approach has its advantages, it may deter some investors. However, it could potentially lead to more accessible housing options and offer stability to those residing in manufactured home communities.   In conclusion, the Spokane, Washington real estate market remains intriguing and dynamic. While interest rates have been volatile, affordability concerns persist, and the market activity levels have experienced fluctuations. However, it's crucial to note that the current situation differs significantly from the 2008 housing crash, with foreclosure rates remaining relatively low. Interest rate predictions vary, with some experts suggesting a potential drop in the coming months, which could impact the market positively. Moreover, creative real estate strategies like house hacking are gaining traction, providing opportunities for homeowners to optimize their investments. Additionally, legislative initiatives, such as allowing tenants to own land in manufactured home communities, could potentially help alleviate the housing shortage in the state of Washington. In this ever-changing real estate landscape, it's essential to stay informed and adapt your strategy to align with market conditions. Whether you're planning to buy, sell, or invest in Spokane, it's wise to consult with a real estate professional to make informed decisions that align with your goals. Thank you for tuning in, and if you have any questions or require assistance with your real estate needs, feel free to reach out.

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Increased Employment Opportunities and Higher Incomes Fuel Surge in Buyer Demand

Amid prolonged discussions about an impending recession, the economy has displayed remarkable resilience, a phenomenon partly attributed to robust employment rates and steadily climbing wages. Examining the most recent data on both fronts reveals promising trends for those contemplating the sale of their homes.   Expanding Job Market In contrast to the anticipated job losses during periods of economic downturn, our current economy is experiencing growth and job creation. According to the Bureau of Labor Statistics (BLS), July saw the addition of 187,000 jobs—an increase from the 185,000 generated in June. This ongoing job growth is indicative of an expanding workforce. Notably, the unemployment rate remains significantly lower than the historical average of 5.7%, as illustrated in the graph below: A lower unemployment rate signifies that a majority of job seekers are successfully securing employment. Gainful employment provides individuals with stable incomes, thereby fostering an environment conducive to exploring homeownership.   Elevated Earnings Furthermore, data demonstrates a consistent upward trajectory in hourly wages over the past several years, as depicted in the graph below: As wages continue to rise, individuals have access to greater disposable income, which can be allocated towards savings or directed into the home purchasing process. This augmented income helps mitigate some of the affordability challenges posed by current housing market conditions. Affordability hinges on three primary factors: wages, home prices, and mortgage rates. Amidst the current backdrop of elevated home prices and mortgage rates, Builder Online aptly highlights the contribution of escalating wages: “The housing market has been a beneficiary of the strong economy and labor market. Many of those employed have saved money over the past few years and used those funds toward a down payment on a home.”   For homeowners contemplating a property sale, the synergy of a buoyant job market, increasing wages, and the resultant surge in buyer demand is indeed cause for celebration. The expanding pool of potential buyers is now better positioned to embark on their homeownership aspirations.   The confluence of burgeoning employment prospects and rising incomes has given rise to an enthusiastic buyer base, significantly favoring property sellers. To make the most of this propitious environment, consider enlisting the expertise of a local real estate agent. Their guidance will prove invaluable in navigating the intricacies of the home selling process, from appropriately pricing your home to ensuring it is ready for prospective buyers' scrutiny.

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Spokane Job Market 2023 | Top 15 Employers in Spokane, WA

  Have you fallen in love with the Inland Northwest and are considering a move to the Spokane area but are curious what the job market is like and who the top employers are? Well this video is for you! I’m excited to share with you the top 15 employers here in Spokane.   After just before we jump into the video, if you wouldn’t mind gently turning the like button blue, or white if you’re on night mode, and smashing the subscribe button. You have no idea how much that two seconds of your life helps push this content out to more people that are moving to Spokane just like you.   #15 Gonzaga University In the number 15 spot, we have Gonzaga University. Now as we go, we’ll kind of talk about trends to notice and industries that seem to be doing well in Spokane and so right off the bat you’ll see that Education is a very big industry for our area. Gonzaga employs one thousand two hundred and ninety three people with an increase of about 30 employees over the last year. And for those of you who don’t know, Gonzaga is one of our private universities here in Spokane and is nationally known for our basketball team, the Gonzaga bulldogs, but also if you’re someone that is thinking of going to law school, they have a heavy weight to any resume when getting into the career. It’s a beautiful campus right along the Spokane river and the centennial trail runs conveniently through it allowing you to walk or bike east or west away from the campus. Currently they have 38 job openings listed on their website so if you’re looking to make a move as a professor or faculty member, it could be worth checking out.   #14 Mann-Grandstaff VA Medical Center Number 14 is the Mann-Grandstaff VA Medical Center or as most people call it, the VA Hospital. This is another trend you’ll start seeing as we go down the list but healthcare is another huge industry in our area especially as we’ve expanded our university district which has lead to the University of Washington and Washington State University to have their main nursing campuses here in Spokane. The VA Hospital employs one thousand three hundred and twenty two people and currently over 100 jobs available to apply for online. So if you’re a traveling nurse watching this or a nurse looking for a place to settle down, Spokane has many medical positions.   #13 Walmart 13 is Walmart and that’s everything from retail to pharmacy and delivery. Some positions don’t need much on a resume and others might be more corporate positions or specialists like the people that work at the pharmacy. There are currently one thousand four hundred and twenty two employees in Spokane County which is actually down by over 500 people from this time last year. I find that very interesting and curious as to why that happened so if you are someone that worked at Walmart in 2021, leave a comment down below, let us know what happened!   #12 Spokane Falls Community College and the Spokane Community College And here we are, back in education for number 12 which is the Spokane Community Colleges. We have two community colleges here in Spokane, the Spokane Falls Community College and the Spokane Community College or SFCC and SCC respectively. Very generally speaking, SFCC tends to be more for Liberal Arts and SCC tends to be more for the trades but I’ve known people that have gone to the other school for Liberal arts and vice versa. I think something that is really cool for high school students that I know is not available everywhere, is the option to do running start. High School students in Spokane can opt to start going to community college when they’re a Junior in high school and can actually graduate from High school with a diploma and an AA which is really cool. It allowed my little sister to only have to attend her undergrad for 2 years because she had all of her basic classes done and for a lot cheaper.  #11 Kalispel Tribal Economic Authority (Northern Quest Resort and Casino) Number 11 on the list is the Kalispel Tribal Economic Authority which is the fancy name for the Northern Quest Resort and Casino and all that they provide to the Spokane area. Now, I’m not a big casino goer, I haven’t stepped foot in one since I stopped being a professional drummer in Montana playing country gigs multiple nights a week, but the Northern Quest Casino is a very nice place to go with a beautiful hotel, they have a Masselows out there so some amazing steak options, they just introduced sports betting if that’s something that you’re into, and they have a ton of other amenities and have been growing a lot in Airway heights. They’ve had almost a ten percent growth in employment over the last year and now have just over fifteen hundred employees.   #10 URM Stores From their website, URM is a retailer-owned co op meaning that the owners and shareholders of URM are also retail grocers, or in other terms, their customers. So for example, Rosauers might get their food supplied by URM but Rosauers also is part owner in the company. And this is the first company that touches on another large sector of business in Spokane which is Logistics. Spokane has a hub for freight, flight deliveries and railroad deliveries because we are situated right along Interstate 90 that runs east and west and Highway 195 that runs north and south. So if being in that industry on the technology side, engineering, management, but that also provides opportunities for a lot of manufacturing and more laborious jobs that need to be filled as well. URM currently has just over sixteen hundred employees.   #9 Central Valley School District Next up is our second largest school district here in Spokane, so for spot number nine we have the Central Valley School District. This district covers the South side of I 90 from Dishman Mica all the way to the Idaho Border including Liberty Lake. They’ve recently added Ridgeline High School and Selkirk middle school to help with the expansion of Liberty Lake and Greenacres with all of the new housing projects going on in that area. The sixteen hundred employees are spread across thirty schools assisting just over fourteen thousand students so the adult to student ratio is about 1 in 10.   #8 City of Spokane & #7 Spokane County Now I’ll combine our next two which would be 8 and 7 because they’re relatively similar but those employers would be our local government. The City of Spokane and Spokane County employ four thousand people in the Spokane area and that can be anything from office jobs like city planners and data analysts to police officers and firefighters to judges to park managers and maintenance workers. So this is a wide spectrum of employment here in the area that want to contribute directly to the betterment of the city and the county.   #6 MultiCare Health System of the Inland Northwest Number six is the MultiCare Health System of the Inland Northwest which basically covers a ton of our smaller hospitals and clinics like Rochwood, Indigo, Deaconess, and the Valley Hospital. They have thirty one hundred employees.   #5 Amazon Five is still newer to the area but rapidly growing just like they are everywhere else and that is Amazon. Within the last maybe five years, we have had two amazon fulfillment centers show up in our area, one outside Airway Heights and the other along Trent in the Valley. The only bummer is that we still don’t have same day or even one day delivery here, sometimes it takes a week but now I just sound privilege so we’re moving on! But before I do, they currently employ over thirty seven hundred people providing a ton of job opportunities. Love them or hate them, they provide opportunities or people to make a lot of money at the top and give people a place to maybe work a terrible job fulfilling orders, but everyone has to start somewhere.   #4 School District 81 Number four is our largest school district here in spokane, District 81. Like I said, the trends continue with another huge employer in the education space. District 81 has seven high schools, six middle schools which I think will be eight or nine here soon and thirty four elementary schools which adds up to nearly thirty thousand students and provides just over thirty seven hundred jobs. One thing I want to say is that teachers get paid pretty well in Washington for the cost of living. I know multiple teachers that have been in for less than ten years that make very close to six figures a year and if you’re a two teacher household which seems to be somewhat common, you can make a solid household income for our area. I got my education license in Montana and the pay was nothing like it is here so that’s something to consider if you’re moving from out of the area.   #3 State of Washington Number 3 is more government jobs from the State of Washington which is over fifty five hundred jobs here in Spokane county, that’s pretty wild. If you include all the teaching jobs and the city and county, basically all government jobs available in our area, it probably adds up to close to five percent of people in Spokane county have a government job of some sort which is an interesting observation.   #2 Providence Inland Northwest In second place is another healthcare company, Providence Inland Northwest which would be in conjunction with Sacred Heart. That is our largest hospital in Spokane and the largest in the inland northwest.The hospital is highly awarded in multiple areas from stroke care to cardiac issues. I’m obviously not a doctor so I don’t know all the terms but I know that it is a highly respected hospital and patients are flown in from all across the inland northwest for care here. They currently have just over six thousand employees and I have multiple clients who work here, make great money and have really flexible schedules, too. It honestly makes me kind of jealous.   #1 Fairchild Air Force Base And finally, our number one employer here in Spokane is not in education or healthcare, but it is for the government, it’s Fairchild Air Force Base. Now to my surprise there are over sixty seven hundred people that work for the air force base which is wild and the cool thing is, there are almost seventy jobs available on base and all of them can be applied to by the public. They’re looking for physicists, engineers, cooks, psychologists, biologists, nurses, you name it. Maybe I’m the dumb one but I had no idea they employed that many “civilians” which is just super cool. The other thing to note is just how many of these jobs are in the west plains of Spokane or around the town of Airway Heights. You have the Base, Amazon, Northwest Quest Casino all in or around the town itself so I think this area is going to keep growing a lot over the next few years. 

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