Where is the Housing Market in Spokane Headed?

Where is the Housing Market in Spokane Headed?In the last decade, Spokane has become an increasingly popular city to relocate to. Whether for work, a change of pace and scenery, or to find more affordable means,  the city of Spokane has been rapidly growing. This has led many potential sellers and buyers to ask questions about the Spokane real estate market. One of the most frequently asked is if home prices are expected to drop soon. Let's take a look at the real estate market in Spokane.

What Does the Housing Market Look Like in Spokane in 2024?

Are Home Prices Dropping in Spokane?

Let's start by answering this often-wondered question. Recent market numbers show that home prices in Spokane have increased when looking at year-to-year numbers. Prices in Spokane increased around 0.9% year over year in January 2024. 

The median listing price of Spokane homes in December 2023 was $478,000. This was a year-over-year increase of 8.6%. The median home sold price was $388,000. The sale-to-list price ratio came in at a surprising 99.4% showing that almost all homes sold at list price. This information also points to a continued sellers' market in Spokane. 

Average Days on the Market

The average days on market for a home to sell in Spokane was 59. This shows valuable insight into the popularity and demand for homes in the Spokane area. It is a slight increase in days on the market as compared to the previous year but not a significant slowdown to say that the market has shifted.

Spokane's 2024 Housing Market Forecast

A slight increase in home prices could lead a Spokane homebuyer to think that purchasing a home in the area could be challenging. There is good news for buyers in 2024 in the Spokane area, however. The housing inventory in Spokane has risen in the past few months giving buyers more options. At the beginning of 2023, the Spokane metro area had about a 0.5-month supply of homes for sale. In the fall of 2023, the inventory approached a three-month supply which was a significant increase but still below normal to shift from a sellers market to a balanced market. It is predicted that more and more housing inventory will come into the Spokane market in the coming months and that it could even be enough to begin shifting the market into a balanced zone in another year.

It is also predicted that though mortgage rates have increased they will have little impact on holding buyers back from purchasing a home in Spokane. Many economists and market analysts believe that buyers have come to terms with the current mortgage rates and will continue to look for a Spokane home simply because they need to purchase one. They will do whatever it takes to adjust their home search parameters to find an affordable Spokane home in 2024. It is also expected that mortgage rates could take a slight decrease which will also bring more buyer interest to the real estate market this year. The Mortgage Bankers Association forecasts that mortgage rates could drop to 6.1% by the end of 2024.

To sum it all up, it is expected that the Spokane housing market in 2024 will have continued modest price growth with an increase in inventory and a slight decrease in mortgage rates. This is expected to keep the sellers' market going at least through the year. Spokane is still a great place to purchase a home and buyers should be relieved and hopeful that more inventory is expected.

If you are looking for a home in Spokane I am here to help. I can help you find the perfect place to settle into if you are relocating to Spokane or I can help you move from your current Spokane home into one that fits your lifestyle better. Contact me anytime with any Spokane real estate needs.

Post a Comment