Spokane Rooter
In June 2023, the Spokane housing market faced a significant downturn as home sales plummeted by nearly 15% compared to the same month in
2022. The Spokane Multiple Listing Service reported a total of 532 homes sold in June, a stark drop that has raised eyebrows among local real estate experts and potential buyers. This article delves into the underlying factors driving this decline, including rising inventory levels and increasing home prices, alongside the broader economic issues of higher mortgage rates and inflation impacting affordability. While it may seem like a challenging time for buyers, the overall year-to-date figures reveal a more nuanced picture. In total, 2,700 homes have been sold in the first half of the year, reflecting only a slight decline of
1.4% from
2022. The median home price has seen a modest increase, now sitting at $415,000, which further complicates the landscape for prospective homeowners. With approximately 1,260 homes available at the end of June—up from 960 a year earlier—this article will provide an analysis of the current state of Spokane’s real estate market and what it means for buyers and sellers alike.
Key Takeaways
- Spokane home sales dropped nearly 15% in June due to increasing inventory and home prices.
- The median home price rose by
1.5% to $415,000, impacting overall affordability in the market. - Despite the June decline, year-to-date sales figures indicate a more stable trend with only a slight decrease from last year.
Analysis of June’s Home Sales Decline
In June, the Spokane real estate market experienced a notable downturn as home sales saw a significant decline, according to the Spokane Multiple Listing Service. Sales dropped to 532 homes, reflecting a nearly 15% decrease compared to June of the previous year, and a 6% decline from May. Several factors contributed to this trend, including rising inventory levels and increasing home prices, which coupled with higher mortgage rates and persistent inflation, have adversely impacted affordability for potential buyers. Even though June marked a dip in sales, the year-to-date statistics paint a slightly different picture. There is a minor overall decline of
1.4%, with 2,700 homes sold in the first half of the year—just 40 fewer than the same period in
2023. Interestingly, despite the decrease in sales volume, the median home price has risen by
1.5%, positioning it at $415,000. Additionally, inventory levels have surged by over 30%, with approximately 1,260 homes available at the end of June compared to 960 a year prior. Although the current inventory reflects a
2.4-month supply—indicating a low stock for a balanced market, which typically sits between 5 to 6 months—the overall sentiment within the real estate community suggests the Spokane market is transitioning into a new cycle after the intense activity seen during the pandemic, as noted by local expert Marianne Bornhoft.
Factors Affecting Housing Affordability in Spokane
Several key factors are influencing the dynamics of housing affordability in Spokane, shaping both the current market landscape and future trends. One significant factor is the rise in mortgage interest rates, which have climbed steadily over recent months, making it increasingly challenging for buyers to finance their home purchases. This financial strain is compounded by ongoing inflation, driving up the cost of living and diminishing purchasing power. Additionally, although inventory levels have increased, offering more choices for buyers, the corresponding rise in prices continues to outpace wage growth in the region. The combination of these elements creates a unique challenge for prospective homeowners, compelling many to reconsider their expectations or delay their home-buying decisions altogether. As Spokane navigates these complex trends, monitoring these factors will be crucial for both buyers and sellers as they adapt to a shifting market.
