Spokane’s median home price decreased slightly to $436,000 in July. Meanwhile, the average sale price jumped 2% to $495,000. At the same time, a sudden drop in mortgage rates gave buyers an instant boost in purchasing power.
Pricing and Inventory
Spokane’s median home price dropped 1.6% to $436,000 in July, but the average sale price climbed 2% to $495,000. Year-over-year, both numbers remain almost completely flat. In fact, they are up just 0.4% compared to last year. Right now, more homes are hitting the market while pending sales have slowed down. As a result, we are moving into a very balanced market. New inventory is arriving, but homes are not selling quite as fast. Previous month’s update
Rate and Economic Context
Mortgage rates recently hit their lowest point in nearly a year and a half. Surprisingly, this happened completely without Federal Reserve intervention. Instead, the market essentially priced in the rumor of a September rate cut naturally. Because of this drop, the average homebuyer gained about $30,000 in buying power. So, if you are thinking about moving soon, I would honestly buy the rumor right now before any official rate cut even happens.
Advice for Sellers
Spokane home prices remain very stable despite a slower pace of market growth. Looking at historic trends, we are currently entering into a pennant or funnel shape. We saw massive price ramp-ups over the last decade. Now, we are squeezing into the narrow end of that funnel. The market has to break one way or the other. My theory is that prices will break upward because we still lack enough inventory. However, many sellers currently feel stuck. For example, I have a 2.75% mortgage rate myself. So, buying my exact same house today would cost me twice as much. But as rates continue to improve, that gap is slowly starting to close. FREE Home Valuation page.
Advice for Buyers
The recent drop in interest rates added roughly $30,000 in purchasing power for the average buyer. If you already have a pre-approval, you suddenly have two great options. First, the home you already wanted just became significantly more affordable. Second, you can now stretch into a higher price bracket. You can grab that fourth bedroom or third-car garage while keeping your monthly payment exactly the same. Plus, more inventory is hitting the market today. So, you actually have time to tour two or three different houses before making a final choice.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started! Also, if you have any mortgage questions, you can reach Mike Hogan directly at 509-747-1300.
FAQ
In July, the median home price in Spokane dropped 1.6% to $436,000. However, the average sale price actually rose 2% to $495,000. Year-over-year, property values remain very flat and stable across the county.
Yes, we are seeing more homes hit the market right now. At the same time, pending sales have slowed down slightly. Because of this, we are entering a balanced market with more choices for buyers.
Yes, mortgage interest rates recently dropped to their lowest point in almost a year and a half. This happened naturally without any direct intervention from the Federal Reserve. As a result, the average consumer gained about $30,000 in buying power.
Right now is an excellent time to buy. Because interest rates dropped and more inventory is available, you get a major boost in purchasing power. Plus, you no longer have to make an instantaneous decision on a property.
We filmed this month’s update at No-Li Brewhouse, located right along the Spokane River in the University District. Honestly, if there is a better patio for having a beer in Spokane, I haven’t been there. The riverside setting is absolutely incredible. It is the perfect spot to sit back, enjoy a locally crafted pint, and talk real estate while watching the water flow by.
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