Spokane Rooter
The Spokane real estate market is experiencing a notable transformation as we enter mid-2023. With changes in sales activity and inventory levels, it’s essential for both potential homebuyers and sellers to stay informed about the evolving landscape. In June, home sales in Spokane saw a significant drop, with completed transactions falling to 532—an almost 15% decrease compared to June of the previous year and a 6% decline from the preceding month. This slump coincides with the rise in home inventory and new listings, pointing to a shift in market dynamics that could signal the beginning of a new phase characterized by moderation, as explained by Spokane Realtor Marianne Bornhoft.
Key Takeaways
- Home sales in Spokane dropped nearly 15% in June compared to last year, marking a significant market shift.
- Inventory levels rose by over 30%, leading to a current supply of
2.4 months, indicating a more buyer-friendly market. - Despite short-term declines, year-to-date sales remain close to last year’s figures, with a slight median price increase of
1.5%.
Current Sales Trends and Inventory Levels
As we analyze the current sales trends and inventory levels in Spokane, it’s evident that the real estate market is experiencing a noteworthy transformation. In June, the residential sales sector faced a setback, with completed home sales dropping to 532, reflecting a striking 15% decrease compared to June of the previous year and a 6% decline from May. This downturn is coupled with a marked increase in home inventory and new listings, signaling a shift in market dynamics that real estate experts, including Spokane Realtor Marianne Bornhoft, are closely observing. She notes that the market appears to be entering a phase of moderation, especially after the peak periods characterized by soaring prices and limited availability that defined the pandemic years. Key factors influencing this trend include rising mortgage rates coupled with inflation pressures, which are affecting buyers’ affordability. However, it’s important to contextualize this decline; year-to-date figures reveal a smaller decrease of just
1.4%, with 2,700 homes sold in the first half of 2023, slightly below last year’s performance. Furthermore, the median home price has shown resilience, increasing by
1.5% to reach $415,000. In contrast to these price movements, the supply of homes for sale has surged over 30%, with about 1,260 homes available at the end of June compared to 960 the previous year. This increase results in a modest
2.4 months’ worth of inventory—a figure that, while lower than the typical balanced market range of five to six months, indicates a slow shift toward a more buyer-centric landscape.
Future Outlook for Spokane Real Estate
Looking ahead, the Spokane real estate market is poised for several changes that could reshape buyer and seller interactions. After experiencing a wave of appreciation in home prices during the pandemic, the current landscape suggests a transition toward normalization. With mortgage rates remaining high, potential buyers are likely feeling the pinch of affordability constraints. This factors into their decision-making processes, as they weigh purchasing options against the backdrop of rising inflation and economic uncertainties. Moreover, increased inventory levels could empower buyers to negotiate more favorable terms—something not possible in the previous competitive climate. As sellers adjust their pricing strategies to align with the evolving market conditions, it means that potential home buyers might find opportunities for better deals in the coming months. This could further entice first-time buyers or those looking to upgrade, revitalizing interest in the market as economic indicators stabilize.
