Rich Prasser and Mike Hogan (NMLS # 4538) in Spokane, WA, are giving us an update on all things Real Estate and Mortgage in the Spokane area at our fave spot – Jack & Dan’s! Join them as they chat about how buying a home just got cheaper! Is there content you’d like to hear about that we haven’t covered? Comment below!
2026 Real Estate Outlook: Why We’re Bullish on the Year Ahead
Welcome to 2026! We’re kicking off the year at a local favorite, Jack and Dan’s, recapping a whirlwind 2025 and looking at what’s in store for the housing market this year.
Whether you’re a Niners fan (sorry about that debt repayment, Rich!) or just looking for the right time to make a move, there is plenty to be optimistic about as we head into the new year.
Looking Back: How 2025 Wrapped Up
While 2025 had its challenges, the year ended on a surprisingly strong note, setting a solid foundation for 2026. Here is a quick look at the numbers:
- Median Price Point: We finished the year at $397,000, down about 4.5% year-over-year.
- Inventory Growth: New listings increased by 20–25%, giving buyers more options than we’ve seen in recent years.
- Pending Sales: This is the big one—new pendings going into January were up nearly 25%. This is a fantastic indicator of the momentum we’re carrying into 2026.
The “Cost of Ownership” Win
One of the most exciting shifts over the last 12 months isn’t just the price of homes, but the affordability factor.
At the start of 2025, national mortgage rates averaged around 6.7%, with an average monthly payment of roughly $2,600. We closed the year with rates at 6.2% (trending toward 6% in early January), bringing that average payment down to $2,357.
The Bottom Line: Between the dip in median prices and the improvement in interest rates, the total cost of owning a home has effectively dropped by nearly 14% over the last year.
What to Expect in 2026
We are officially “bullish” on 2026. The National Association of Realtors is predicting a 14% increase in the number of homes transacted this year. While we aren’t back to “historical averages” yet, we are moving in the right direction.
What about interest rates? While we might see rates continue to trend down slightly, don’t expect a massive drop. We anticipate rates hovering around the 6% range for the foreseeable future. While some government initiatives (like the proposed $200 billion mortgage-backed security allocation) provide positive “rumors” for the market, much of that is already priced into the rates you see today.
Don’t “Self-Select” Out of the Market
It’s easy to get lost in the headlines or talk yourself out of a move because of what you read on Google. However, most real estate decisions aren’t driven by rates—they’re driven by life.
Whether your house feels too small, you’re changing jobs, or your family is growing, the financial side is often more manageable than people think. Between seller concessions, price negotiations, and evolving mortgage products, there are many ways to make a move make sense.
Let’s Chat
If you have a life event on the horizon—kids moving out, a new job, or just a need for a change of scenery—don’t guess at your options. Reach out to a local expert who can give you the real numbers for your specific situation.
- Rich (Real Estate): spokanehomeguy.com | 509-990-SOLD
- Mortgage Inquiries: chimneyrockmortgage.com | 509-747-1300
JACK & DAN’S TAVERN
When we record our monthly market updates, we try to choose a new location for each video, but sometimes an oldie is a goodie, and in this case, a real goodie! Jack & Dan’s Tavern has been around since the 1940’s. It’s a staple in Spokane and is a frequent pit stop for our team to catch lunch. They’re conveniently located down the street from the Warehouse sports complex, across from Gonzaga University, right in the heart of the U-District in the Logan Neighborhood.
They feature a full bar and menu showcasing 22 beers on tap, Washington local wines, and full cocktail service with a classic Tavern-style menu. Their Rubens are delicious and come with a side of crinkle fries and a quartered pickle! Their fish & chips are also fried to perfection. You can’t go wrong stopping by Jack & Dan’s, whether it’s for a full lunch or a beer! Want to check them out: https://www.jackanddans.com/
WATCH NEXT:
HOW TO BUY A HOUSE IN THE NEXT 12 MONTHS: • • How to Buy a House within the Next YEAR!
HOW TO CHOOSE A MORTGAGE LENDER: • • How to Choose a Mortgage Lender
NOVEMBER 2025 SPOKANE MARKET UPDATE: •    • A 2025 Spokane WA Real Estate Market Recap… Â
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