Spokane Rooter
The Spokane real estate market is facing a significant shift, with June reporting a 15% plunge in home sales compared to the previous year. This downturn is characterized by 532 transactions recorded through the Spokane Multiple Listing Service, marking a downward trend not only from June 2022 but also a 6% decrease from May
2023. As new inventory floods the market, potential buyers grapple with rising mortgage rates and inflationary pressures that are impacting affordability. Real estate experts, including agent Marianne Bornhoft, suggest that we may be witnessing the onset of a new real estate cycle—one that follows the substantial price surges and low inventory dynamics of the pandemic period. Despite this notable drop in sales in June, the broader picture for the year remains relatively stable, with a year-to-date decline of just
1.4%. Join us as we dive deeper into the current trends shaping the Spokane housing market, and the underlying factors driving this transformation.
Key Takeaways
- Spokane’s home sales saw a 15% drop in June compared to the previous year, signaling a potential shift in the real estate cycle.
- The rise in mortgage rates and inflation are key drivers contributing to decreased affordability and home sales.
- Despite the June decline, the year-to-date sales figures reflect a marginal decrease, indicating ongoing market activity.
Market Trends in Spokane Real Estate
### Market Trends in Spokane Real Estate
The Spokane real estate market is currently navigating a noteworthy transition that reflects broader economic trends impacting many regions across the United States. Home sales in Spokane saw a marked decline in June, with 532 transactions reported through the Spokane Multiple Listing Service. This figure not only represents a substantial 15% dip compared to June of the previous year but also signifies a 6% fall from the preceding month, May. Several key factors are driving this change, primarily the increased mortgage rates and the inflationary pressures that have affected housing affordability.
Real estate professional Marianne Bornhoft has characterized these current market conditions as the onset of a new cyclical phase in real estate, suggesting that what we are witnessing is a moderation in activity following an unprecedented surge in prices and a period marked by low inventory levels during the pandemic. Despite this significant decrease in June, it’s worth noting that year-to-date statistics indicate a more resilient marketplace, with total sales dropping only by a modest
1.4%. The first half of the year saw 2,700 homes sold, buoyed by months of brisk activity that have helped offset the slowdowns observed recently.
Additionally, the median home price has seen a slight increase of
1.5%, with the current average price resting at $415,000. A promising trend is the substantial rise in home inventory, which has escalated by over 30% to around 1,260 available homes. This translates to a
2.4-month supply of homes on the market, a figure still considered low when viewed against historical norms, where a balanced market typically has around 5 to 6 months’ supply. Overall, while challenges continue to shape the Spokane real estate landscape, the current trends may signal opportunities for buyers and sellers alike as the market evolves.
Factors Behind the Decline in Home Sales
The interplay between rising mortgage rates and inflation has created a ripple effect in the Spokane housing market, compelling buyers to reassess their purchasing power and adjust their expectations accordingly. As these economic parameters shift, potential homeowners are finding it increasingly difficult to commit to purchases that previously appeared manageable. This hesitance is further compounded by the gradual increase in home listings, which, despite improving inventory, hasn’t fully mitigated the challenges consumers face. In the past, buyers may have rushed to secure properties in a low-inventory environment, but now, they are more cautious, resulting in a slowdown of transactions. Real estate professionals like Marianne Bornhoft note that this change reflects a fundamental shift towards a more balanced market, where buyers may now have the time to carefully weigh their options rather than feeling pressured to act swiftly.
