Spokane Rooter
In the ever-evolving landscape of Spokane’s real estate market, June 2023 has brought significant changes that potential buyers and investors need to recognize. With a reported drop in home sales from the Spokane Multiple Listing Service, a shift in the dynamics of supply and demand has become apparent, raising critical questions about the future of home purchasing in the area. Higher mortgage rates and an increase in inventory are at the forefront of this transformation, presenting both challenges and opportunities for homebuyers. In this article, we will explore the current market trends in Spokane housing, delve into the implications of these changes for buyers, and provide insights into what this could mean for navigating the market in the coming months.
Key Takeaways
- Spokane home sales dropped nearly 15% in June compared to last year due to higher mortgage rates and increased inventory.
- The rise in inventory has led to a more favorable buyer’s market, with a current supply of nearly 1,260 homes listed.
- Despite the decline in sales, year-to-date figures show only a modest decrease, highlighting resilience in the Spokane housing market.
Current Market Trends in Spokane Housing
In June, the Spokane housing market witnessed significant shifts, as reported by the Spokane Multiple Listing Service, with completed home sales plummeting to 532—reflecting a substantial drop of nearly 15% from the same month last year and a 6% decrease from May. This downturn is attributed to several factors, including an increase in available home inventory and the emergence of new listings, signaling the beginning of a new market cycle following a stretch of soaring prices and dwindling inventory during the pandemic. Spokane Realtor Marianne Bornhoft highlights that higher mortgage rates and ongoing inflation are further complicating affordability for prospective buyers, contributing to the overall climate of caution in the market. Nevertheless, it’s important to note that the year-to-date sales figures present a less alarming picture, with an overall decline of just
1.4%, totaling 2,700 homes sold in the first half of the year. Impressively, the median home price has edged up by
1.5%, reaching $415,000. Concurrently, a surge in inventory has been recorded, with figures showing a notable over 30% increase, resulting in nearly 1,260 homes listed for sale compared to 960 last year. This current inventory equates to a
2.4-month supply, which, while improved, still falls short of the balanced market range of 5-6 months. In summary, while Spokane’s housing market is currently experiencing a transition phase characterized by declining sales and rising inventory levels, it maintains a resilient undercurrent with slightly appreciating home prices.
Implications for Buyers in the Changing Market
As buyers navigate the changing landscape of the Spokane real estate market, understanding the implications of these recent trends is crucial. The current decline in home sales may present both challenges and opportunities. With an increase in inventory, buyers may find more options available, enabling them to be selective and potentially negotiate better purchase conditions. However, the higher mortgage rates and inflation still pose significant hurdles to affordability, which may deter some potential buyers from entering the market. For those who are financially prepared, this moment might allow for advantageous purchasing opportunities before prices potentially stabilize or increase again. As the market adjusts to the new dynamic, buyers should keep a close eye on market conditions and be ready to act when favorable scenarios arise, leveraging the current inventory surge to their advantage.
