Spokane Rooter
As of June 2023, the Spokane real estate market is experiencing a notable shift, evidenced by a significant dip in home sales and an increase in available inventory. This article dives deep into current trends in Spokane home sales, analyzing the factors influencing this market transition and what it means for potential buyers and sellers. With a nearly 15% year-over-year decline in sales and a rise in inventory levels, understanding the dynamics of this market is essential for anyone looking to navigate it successfully.
Key Takeaways
- Home sales in Spokane saw a nearly 15% drop in June compared to the previous year.
- The current increase in inventory, with over 1,260 homes available, marks a shift towards a more balanced market.
- Rising mortgage rates and inflation are impacting the affordability of homes in Spokane.
Current Trends in Spokane Home Sales
In the ever-evolving landscape of real estate, the Spokane home sales market is experiencing a notable shift, as highlighted by recent data from the Spokane Multiple Listing Service. In June, the region saw a significant decline in home sales, with only 532 properties sold, marking a nearly 15% decrease compared to June of the previous year, and a 6% drop from May. This slowdown can be attributed to an increase in inventory and a surge in new listings, which have altered the once-frantic pace of transactions. While the overall home sales in Spokane for the first half of the year only dipped slightly, by
1.4% from the previous year, with a total of 2,700 homes sold, the dynamics of the market are evidently changing. The median home price has seen a modest increase of
1.5%, bringing the current average to $415,000. Additionally, inventory levels have surged by over 30%, climbing to approximately 1,260 homes available on the market—up from just 960 a year ago. While this indicates a transition towards a more balanced market, it is important to note that the current supply is still low at just
2.4 months, which is historically considered tight. Realtor Marianne Bornhoft emphasizes that this slowdown in sales activity is part of a natural cycle following prolonged periods of rising prices and limited inventory, further compounded by the impacts of higher mortgage rates and inflation on homebuyer affordability. For prospective buyers and sellers in Spokane, understanding these trends is crucial in navigating the shifting real estate market.
Factors Influencing the Market Shift
Several key factors are currently influencing the market shift in the Spokane area, transforming the real estate landscape into a more balanced environment. One significant factor is the increased inventory of homes available for sale, which has risen by over 30% compared to the previous year. The total number of homes on the market has climbed to approximately 1,260, indicating a gradual easing of the intense competition faced by buyers in recent months. Additionally, the spike in new listings has contributed to a change in buyer dynamics, offering more options and creating a less frantic buying atmosphere. Another critical aspect affecting the market is the rise in mortgage rates, which has directly impacted affordability for potential homeowners. As borrowing costs increase, many buyers are finding it more challenging to enter the market, leading to a decline in sales activity. Furthermore, the effects of inflation are also weighing on buyer confidence, prompting a more cautious approach from those looking to invest in property. Ultimately, these factors are heralding a shift that may ultimately result in stabilization within Spokane’s real estate market.
