In March, the Spokane housing market saw a nearly 5% jump in prices, bringing the average home value to just over $462,000. At the same time, we’ve finally seen active inventory increase by about 20% since the start of the year.
Pricing and Inventory
Spokane’s average home price jumped nearly 5% in March to $462,000, while active inventory grew by roughly 20% to 1,800 homes. Closed sales jumped substantially year-over-year as well. We started January with just over 1,500 active homes on the market, so hitting 1,800 last week was a nice jump and exactly what we need to give buyers more options.
Rate and Economic Context
Higher-than-expected inflation numbers are pushing the Federal Reserve to delay rate cuts, which has moved mortgage rates up slightly. Yes, inflation is higher than the Fed wanted last week, but it’s still lower than it was two years ago. We know it’s hard for people to walk away from a 2%, 3%, or 4% mortgage to take on a 6% or 7% rate. But if we’re waiting for a market crash to bring prices down, we would need to see inventory spike over 3,000 homes or rates jump into the 10% or 11% range. I don’t envision either of those happening.
Advice for Sellers
Homeowners who keep their house are seeing rapid equity gains, like adding $22,000 in a single month on a $440,000 home. If you bought a house at $440,000 in February, by March it was worth $462,000. You essentially added all that equity just for keeping the lights on. If you decide to step up into a bigger house, you can expect your equity to grow in even larger numbers as your home value appreciates.
Advice for Buyers
Buyers can tackle current rates by using permanent or temporary rate buydowns, adjustable-rate mortgages, and down payment assistance programs. If you’re on the fence, the sooner you buy, the sooner you start building equity. You don’t even need a massive down payment to get started. Mike and his team are great at being a second set of eyes on your mortgage fees and structure. We offer free strategy sessions to go over your goals and build a game plan, even if you aren’t ready to buy right this second.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started!
FAQ
In March, the average sale price for a home in Spokane jumped nearly 5%, bringing it to just over $462,000. This represents a solid increase and great news for homeowners looking to build equity.
Yes, active inventory has increased by roughly 20% since January. We went from just over 1,500 active homes on the market to around 1,800, which is a healthy jump that gives buyers more choices.
Recent inflation numbers were higher than the Federal Reserve wanted, which has pushed back anticipated rate cuts and moved mortgage rates up. However, we don’t expect rates to spike to 10% or 11%.
No, you don’t necessarily need a down payment at all. There are down payment assistance programs available, as well as strategies like rate buydowns and adjustable-rate mortgages to help make your monthly payment more affordable.
