Spokane home buyers finally have more options to choose from, with active housing inventory up 23% year-over-year this January. Pending sales also jumped an impressive 38% at the start of the month, proving that winter demand remains incredibly strong. Prices are holding steady and even growing a bit. Because of this, our local market is moving back into a much more normal, healthy cycle.
Pricing and Inventory
The Spokane real estate market saw a 23% increase in active inventory year-over-year in January, giving buyers significantly more homes to choose from. On top of that, we saw a 6% increase in new listings just from December to January. Buyers aren’t just looking—they’re making moves. Real estate activity was up a little over 4% overall compared to last year. New pending sales rose 12% year-over-year, and right at the start of January, pending sales skyrocketed 38%.
Last January was incredibly slow, so seeing this kind of growth feels like a welcome return to a normal market cycle. Prices aren’t going anywhere, and we’re actually seeing a little bit of stable growth. So if you’ve been waiting on the sidelines, there is a lot more out there to look at right now.
Rate and Economic Context
Mortgage rates in Spokane have recently dropped back below 7% and are trending lower thanks to cooling inflation and dropping oil prices. Rates briefly headed up over 7% in mid-January, but they have already come back down. Financial markets don’t like surprises. With the new administration in the White House, traders have a clear idea of what to expect, so bonds are stabilizing.
Inflation numbers are also coming down, sitting around 2.2% or 2.3% year-over-year. The Fed wants us right at 2%, so they are very close to where they need to be. On top of that, mortgage rates tend to follow oil prices. We continue to produce more oil and those prices are dropping, which has a lowering effect on rates. We probably won’t see dramatic drops anytime soon, but we expect rates to stay much better than the 7% to 8% highs people were afraid of earlier.
Advice for Sellers
Sellers should expect strong buyer demand, but with inventory up 23%, pricing your home correctly from the start is absolutely crucial. Pending sales are already up 12% year-over-year, which means real estate is cooking right now. But because inventory is growing, you do have more competition from other listings than you did a year ago.
That said, prices are stable and showing slight growth, so it’s still a fantastic time to list. Home Valuation page If you prepare your home well and price it right, there are clearly buyers out there ready to write an offer. We can help you look at the exact numbers for your neighborhood so you know what to expect.
Advice for Buyers
Buyers have strong purchasing power right now, as stable prices and a 23% increase in housing inventory provide plenty of solid options. Because rates have stabilized and inventory is up, we finally have a pretty good alignment of the stars. You can actually look at multiple homes and make a confident choice.
Like we always say, the best time to buy is when you actually want to buy a house. Trying to time the rates or predict prices is basically impossible. It’s kind of like getting a freight train to stop on a dime! Rates are improving, prices are stable, and options are growing. If you’re ready, it’s a great time to make a move. Previous month’s update
Frequently Asked Questions
No, home prices in Spokane are not dropping. In fact, real estate activity was up slightly over 4% year-over-year in January. We expect prices to stay stable and potentially show a little bit of steady growth throughout the year.
Yes, active housing inventory in Spokane increased by 23% year-over-year this January. We also saw a 6% increase in new homes coming onto the market from December to January, giving home buyers a lot more options to choose from.
Mortgage rates recently dipped back below 7% and are trending in a positive direction. Because inflation is down to around 2.2% and oil prices are dropping, we expect rates to stay much better than the 7% to 8% highs we saw previously.
Yes, it is a great time to buy because buyers finally have more homes to choose from. With stable prices and improving interest rates, your buying power is strong. The best time to buy is simply when you are ready to buy a house.
We also had some fun this month talking about why we love Spokane so much, from the amazing public golf courses to the fact that Rich’s daughter is a Seahawks fan (even though he bleeds 49ers red and gold!). Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started!
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