Spokane Rooter
The Spokane real estate market is undergoing notable changes, as shown by the substantial 15% drop in home sales in June 2023 compared to the same month in the previous year. In this article, we will delve into the factors contributing to this shift, including rising inventory levels, fluctuating mortgage rates, and how these elements are reshaping the landscape for buyers and sellers alike. Despite recent declines, we’ll also highlight the year-to-date performance, offering insights into what this means for the future of home sales in Spokane.
Key Takeaways
- Home sales in Spokane dropped nearly 15% in June, indicating a change in the real estate market cycle.
- Increased inventory and higher mortgage rates are contributing to declining home sales and affordability.
- Despite the drop, overall year-to-date sales remain stable, and the median home price has seen a slight increase.
Overview of June Home Sales in Spokane
### Overview of June Home Sales in Spokane
In June 2023, the Spokane housing market experienced a notable cooling trend, with a total of 532 homes sold through the Spokane Multiple Listing Service. This figure reflects a substantial drop of nearly 15% compared to the 624 homes sold in June 2022, and a 6% decrease from the 565 homes sold in May
2023. This downturn can be attributed to an increase in inventory and new listings, as the market adjusts after a prolonged period of rising prices coupled with limited supply during the pandemic years. Realtor Marianne Bornhoft pointed out that higher mortgage rates and ongoing inflation are significantly impacting home affordability—a key factor driving this market transition.
Despite June’s sales decline, the year-to-date statistics remain fairly stable, with 2,700 homes sold in the first half of 2023, representing only a
1.4% decrease from the same period in the previous year. This stability is underscored by notable sales surges in February and April, which helped mitigate the lower sales activity observed in other months
Interestingly, the median home price in Spokane has shown a slight uptick of
1.5%, now reaching $415,000. This modest increase suggests that although sales activity has slowed, home values are still resilient amidst market changes. Additionally, inventory levels have surged more than 30% year-over-year, with approximately 1,260 homes listed at the end of June, compared to 960 in June
2022. This increase in inventory translates to a
2.4-month supply of homes—a figure that remains relatively low by historical standards, given that a balanced market typically maintains a 5-6 month inventory.
In summary, while Spokane’s June home sales reflect a cooling market with reduced activity, the year-to-date stability and rising inventory levels indicate that this could be a transitional phase towards a more balanced and sustainable housing market.
Factors Influencing the Real Estate Market Shift
Several factors are currently influencing the shift in the Spokane real estate market, contributing to the downturn in home sales observed in June
2023. One of the primary drivers is the rise in mortgage rates, which has significantly impacted home affordability for potential buyers, pushing a segment of the market to sit on the sidelines as they reassess their financial capabilities. The ongoing inflation is another critical issue, diminishing purchasing power and leading to caution among buyers. Furthermore, the increase in inventory reflects a response to the previous years’ scarcity; with many homeowners now looking to sell as prices stabilize, this rise in available properties has prompted a shift toward a buyer’s market, ultimately affecting the dynamics of home sales and prices.
