Spokane Rooter
The Spokane housing market is undergoing a notable transformation as it heads into the latter half of
2023. Recent reports reveal a sharp decline in home sales, with June witnessing a significant drop in activity when compared to previous years. As inventory levels rise, homeowners, buyers, and real estate professionals are keeping a close eye on the implications these shifts could have on the overall market dynamics. This article explores the current trends in Spokane’s home sales, the increase in available inventory, and how these changes are reshaping the housing landscape.
Key Takeaways
- Spokane’s home sales dropped nearly 15% in June compared to last year, reflecting a significant market shift.
- Inventory in Spokane has surged by over 30%, indicating a growing availability of homes for sale.
- Despite the decrease in sales, home prices have slightly increased, highlighting the continuous demand amid changing market conditions.
Current Trends in Spokane’s Home Sales
As we dive into the current state of Spokane’s housing market, it’s evident that there are significant shifts taking place. In June, the Spokane area witnessed a notable decline in home sales, with only 532 properties sold through the Spokane Multiple Listing Service. This represents a nearly 15% decrease compared to June of last year and a 6% drop from May. Interestingly, while sales numbers dipped, the inventory experienced a remarkable surge. The number of homes available for sale soared by over 30% year-over-year, with 1,260 homes listed at the end of June, a sharp increase from the 960 homes listed a year earlier. This increase in inventory seems to provide buyers with more choices, yet the overall year-to-date performance reveals a more tempered decline; 2,700 homes have been sold in the first half of the year, just 40 fewer than in the previous year. Additionally, the median home price has seen a modest increase of
1.5%, bringing it to $415,000. According to Realtor Marianne Bornhoft, this market is transitioning into a new phase characterized by moderating activity following the earlier surge driven by the pandemic. Factors such as elevated mortgage rates and inflation are squeezing affordability, yet with a
2.4-month supply of inventory, the market remains historically tight compared to the more balanced norm of 5-6 months. These trends indicate that while Spokane’s housing market is cooling off, it is adjusting rather than collapsing, making it crucial for both buyers and sellers to stay informed.
Impact of Inventory on Market Dynamics
The impact of inventory levels on market dynamics cannot be overstated, particularly in the Spokane housing market. As the inventory of homes on the market surged over 30% this June, reaching a total of 1,260 listings, potential buyers now have more opportunities to find homes that meet their needs. This increase in available properties directly influences the supply-demand equation, leading to shifts in pricing and sales velocity. Despite the increase in inventory, the median home price saw a slight rise of
1.5%, indicative of persistent demand even amid higher mortgage rates and inflationary pressures. This suggests that while buyers have more options, competition remains robust for well-priced homes. As Realtor Marianne Bornhoft noted, the market is entering a phase of moderation, where buyers might experience less frenzied bidding wars, yet sellers who price their homes strategically may still find success due to the limited supply relative to historical norms. Understanding these dynamics is essential for anyone looking to navigate the current real estate landscape in Spokane.
