Spokane Housing Market Update | November 2023

  In the ever-changing landscape of the housing market, staying informed is crucial for both buyers and sellers. Today, we delve into the Spokane real estate scene, breaking down the numbers to provide you with valuable insights. From median sales prices to inventory trends, we aim to equip you with the knowledge needed to navigate this dynamic market effectively.   Median Sales Price Fluctuations In October, the median sales price in Spokane experienced a nominal decrease, aligning with typical market fluctuations. A notable trend emerges when comparing data from 2022 to 2023, revealing more dramatic price changes over this period than in the past eight years. The current median price stands at $413,000, showing a 25% decrease from the previous month and a marginal drop of just under 1% year over year. Homebuyers who made purchases between March and September 2022 may witness a decrease in home value, potentially lasting one to two years.   Interest Rates and Market Dynamics Interest rates recently decreased, providing a positive shift from 8% to around 7.35%, with FHA and VA loans benefiting from rates around 6.8%. Despite favorable interest rates, home prices are not dropping significantly due to a scarcity of new listings. October saw 744 new listings, a 25% decline from the previous month. However, active inventory has risen to 1,334, up nearly 3.5% from last year.   Unsold Listings and Market Dynamics The number of unsold listings, those that expired without a sale, is a key indicator of market challenges. A surge in unsold listings, reaching levels not seen since 2017, suggests sellers may be pricing homes based on historical data, failing to adapt to the evolving market.   Days on Market and Pricing Strategies The average days on market is currently 21 days, but this varies across price ranges. Homes in the $300,000 to $399,000 range sell in just under three weeks, while those in the $400,000 to $499,000 range take longer. Sellers need to adjust pricing strategies, considering the current market dynamics to avoid prolonged listings.   Cash Sales and Affluent Buyers A notable shift is observed in cash sales, especially in the higher price brackets. Affluent buyers are opting to purchase homes with cash to avoid monthly liabilities, demonstrating a cautious approach to the economic climate.   Negotiation Leverage and Buyer's Market Some segments of the market are transitioning into a neutral or buyer's market, evidenced by an increasing inventory, particularly in the $500,000 to $750,000 range. Sellers may need to adjust their expectations, as buyers gain leverage with approximately six months of inventory in these price ranges.   Percent of List Price Received Homes in the $200,000 to $300,000 range are selling above asking price, while those in the $500,000 to $750,000 range are selling at approximately 99% of the asking price. Buyers may find opportunities for negotiation, especially for properties that have been on the market for an extended period.   In conclusion, the Spokane housing market is experiencing shifts in pricing, inventory, and buyer-seller dynamics. Both buyers and sellers should carefully consider the current trends and adapt their strategies accordingly. With transparency and proactive engagement, individuals can make informed decisions in this evolving real estate landscape. Whether you're contemplating a sale or on the lookout for your dream home, understanding these market nuances will be instrumental in achieving your real estate goals.

View more

September Housing Market Update: Are We On The Brink Of A Collapse?

  Is the Spokane Housing Market on the brink of a collapse? 🏚️📉 Let's dive into the latest stats, trends, and expert insights to find out! Don't miss out on the crucial info every homebuyer and seller needs to know! Join the conversation and stay ahead of the game in Spokane's real estate scene.

View more

A Wave of Smaller, Affordable Homes on the Horizon

Are you in the market for a new home but finding yourself thwarted by the seemingly relentless surge in mortgage rates and home prices? Well, there's a silver lining on the horizon. According to Ali Wolf, the Chief Economist at Zonda, smaller, more affordable homes are poised to make a comeback: “Buyers should expect that over the next 12 to 24 months there will be a notable increase in the number of entry-level homes available.” In fact, smaller homes are already making their presence felt. When the pandemic struck, the very concept of 'home' underwent a profound transformation. Homes weren't just places to live; they became offices, schools, gyms, and more. Those who had room to adapt to these new demands tended to hold onto their homes. Meanwhile, those with limited space found themselves looking to upgrade to larger residences. Consequently, during the pandemic, smaller homes became the norm in the housing market, and this trend continues to shape the market today (as illustrated in the graph below): This graph also underscores the seasonality of the housing market, with larger homes often appearing during the summer months when families with school-age children are more likely to move. With fall approaching and historical patterns in mind, we can anticipate an influx of smaller, more affordable homes hitting the market for the remainder of the year. This is excellent news, particularly for those struggling to afford a home. Robert Dietz, the Chief Economist at the National Association of Home Builders (NAHB), notes the recent shift in demand for smaller homes: “. . . as interest rates increased in 2022, and housing affordability worsened, the demand for home size has trended lower.”   What Does This Mean for You? The seasonal trend of smaller homes appearing in the market later in the year, combined with builders currently introducing smaller, budget-friendly newly constructed homes, bodes well for prospective homebuyers. Mikaela Arroyo, the Director of the New Home Trends Institute at John Burns Real Estate Consulting, offers her insight on this potential increase in smaller homes: “It’s not solving the affordability crisis, but it is creating opportunities for people to be able to afford an entry-level home in an area.”   If the idea of a smaller, more affordable home appeals to you, you're in luck – they're on their way. To stay updated on what's available in your locality, reach out to a local real estate agent. The path to your dream home may be shorter than you think.

View more