Spokane Rooter
The Spokane real estate market is undergoing a significant transformation, as evidenced by a 15% drop in home sales in June compared to the same month last year. With 532 homes sold through the Spokane Multiple Listing Service (MLS), the decline reflects broader economic shifts impacting affordability and buyer behavior. Notably, this decrease follows a 6% dip from the previous month, highlighting a cooling trend that may signal the end of the rapid growth phase experienced during the pandemic. Recent trends indicate an influx of inventory, with new listings climbing and total homes available for sale increasing by over 30% year-over-year. This article unpacks the factors driving this market shift, explores current trends, and provides insights into future predictions for Spokane home sales.
Key Takeaways
- Spokane home sales dropped nearly 15% in June due to higher mortgage rates and inflation affecting buyer affordability.
- Increased inventory and new listings have contributed to a more balanced housing market, moving away from the rapid price increases seen during the pandemic.
- Despite the June decline, year-to-date sales have only decreased by
1.4%, indicating a potential stabilization in the market.
Factors Contributing to the Decline in Home Sales
The Spokane housing market has recently witnessed a pronounced decline in home sales, with June 2023 reporting only 532 homes sold through the Spokane Multiple Listing Service. This figure represents a notable 15% decrease compared to June of the previous year and a 6% dip from the previous month, May
2023. A critical factor contributing to this decline is the surge in inventory levels, as new listings have increased, resulting in a total of over 1,260 homes available for sale by the end of June. This reflects a 30% climb in available homes year-over-year, and although the market’s current inventory provides a
2.4-month supply, it still indicates a low availability when viewed in historical context, particularly in light of last year’s
1.5-month supply. Local Realtor Marianne Bornhoft notes that the Spokane market is transitioning into a new cycle, returning to a more normalized activity level after a period characterized by rapid price hikes and scant inventory during the pandemic. Furthermore, current economic pressures such as elevated mortgage rates and ongoing inflation are adversely impacting buyers’ affordability. Despite the stark month-over-month sales decline, the year-to-date analysis shows a more modest overall decrease of just
1.4%, with 2,700 homes sold in the first half of the year, marking only slightly fewer transactions than the previous year. Interestingly, the median home price, currently standing at $415,000, has experienced a minor upswing of
1.5%, indicating that while sales may be tapering off, the value of properties is showing resilience in an evolving market landscape.
Current Market Trends and Future Predictions
As we analyze the Spokane housing market, several key trends and predictions are noteworthy. The current landscape reveals a stark shift towards normalization, moving away from the extreme fluctuations seen during the pandemic years. With home sales down significantly, it is essential to consider the implications of increased inventory, which has risen sharply, offering buyers more options. A
2.4-month supply of homes suggests that while we may be in a buyer’s market, the inventory still remains constrained by historical standards. Realtors like Marianne Bornhoft emphasize the importance of adapting strategies in light of higher mortgage rates and inflation, which are squeezing buyer affordability. Looking ahead, it is likely that we will see continued stabilization in home prices as supply levels adjust, creating opportunities for both buyers and sellers to engage more effectively in the market.
