Spokane’s median home price held flat at $420,000 in August 2025, showing virtually zero change compared to last year. Meanwhile, active inventory jumped over 40% year-over-year, keeping our local real estate market firmly in balanced territory. So buyers have more options to negotiate while prices remain remarkably stable.
Pricing and Inventory Data
Spokane’s median home price held steady at $420,000 in August 2025, reflecting a tiny 0.2% change year-over-year. Local home prices peaked in May 2022 at $450,000, and values have plateaued in a predictable channel ever since.
Balanced markets like ours usually last anywhere from six months to a year and a half. On top of stable pricing, active home inventory increased by more than 40% compared to August of last year. Because inventory is up, sellers face stiffer competition. As a result, homes that lack top-tier condition or sharp pricing are sitting on the market longer.
Rate and Economic Context
Mortgage rates in August stabilized near 5.75% for FHA loans and 6.375% for conventional loans for buyers with strong credit. Rates dropped earlier in the month and stayed in a tight range through late August.
Projections from Fannie Mae and the Mortgage Bankers Association suggest rates might improve by only a quarter point over the next six to nine months. Right now, there is a 91% speculative probability that the Federal Reserve will cut the Fed funds rate at their September 16-17 meeting. However, a Fed rate cut does not translate directly into lower mortgage rates because future policy is already priced into current rates.
In fact, dropping the interest rate by another quarter point saves a buyer just $16 per month for every $100,000 borrowed. So on a $500,000 home, waiting for a rate drop might only save you $80 a month! So here is the choice: do you wait months to save the cost of one nice dinner, or do you buy the home you want today?
Advice for Sellers
Spokane sellers must focus heavily on competitive pricing and property condition because active inventory has expanded by over 40%. Buyers are no longer rushing to make panic offers on every listing.
If your home is not the best-conditioned house in your price bracket, you must price it below the competition to attract buyers. Otherwise, your listing will sit, opening the door for buyers to negotiate lower prices or seller concessions. Home Valuation page.
Advice for Buyers
Buyers currently hold strong leverage in Spokane due to 40% higher inventory, flat prices, and stable mortgage rates. You do not have to fight frantic bidding wars anymore.
Waiting on the sidelines for an $80 monthly rate savings could actually backfire. Analysts estimate three to five years of pent-up buyer demand is sitting on the sidelines. So if interest rates drop even slightly, a flood of buyers could rush back into the market, driving up competition and prices. Previous month’s update.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started! If you have financing questions or want to lock in current rates, reach out to Mike Hogan at Chimney Rock Mortgage at 509-747-1300 or visit chimneymortgage.com.
Frequently Asked Questions
The median home sale price in Spokane reached $420,000 in August 2025. This shows virtually no change (a 0.2% shift) compared to August of last year. Prices have remained in a stable plateau since peaking at $450,000 in May 2022.
Major housing associations project mortgage rates may only drop by about a quarter of a percentage point over the next six to nine months. Current rates sit near 5.75% for FHA and 6.375% for conventional loans for well-qualified buyers.
A Federal Reserve rate cut will not automatically lower 30-year mortgage rates by the same amount. Mortgage rates are tied to long-term bonds and inflation expectations. Because expected Fed cuts are already built into today’s rates, actual cuts rarely trigger dramatic drops.
Spokane is currently in a balanced market. Active home inventory has grown over 40% year-over-year, giving buyers more options and negotiating power while home prices stay stable.
Lunch at The Bearded Ginger in Spokane Valley
We recorded this month’s update out at The Bearded Ginger, located on the corner of Sprague and Vista in Spokane Valley! The food here was fantastic. Rich had the lemon pepper wings (which are smoked first and then fried), Mike got the turkey bacon melt, and our producer had the fish and chips—which were absolutely massive and way better than fast food. Fun fact: our entire lunch bill came out to $67 after tip, which is literally less than the $80 a month some buyers are waiting to save by staying on the sidelines!
