Spokane’s average home price increased 3.4% over the past year to reach just over $480,000, while active inventory also rose 19%. With closed sales bumping up nearly 3%, the local real estate market has officially settled into a very stable rhythm for the new year.
Pricing and Inventory
In 2024, the average home price in Spokane increased by 3.4% to reach over $480,000, while active inventory rose by 19%. Closed sales also bumped up just under 3% for the year. Interestingly, cash buyers declined to roughly 17% of the market. This means over 80% of buyers still rely on traditional financing to purchase their homes. We also saw about 25% to 30% of active homes come off the market at the beginning of the year. However, those properties are slowly coming back as we head toward the traditional spring selling season. Ultimately, housing stability is going to be the defining word for 2025. Previous month’s update
Rate and Economic Context
Mortgage interest rates are expected to stay between 6% and 7% throughout 2025, with recent improvements signaling a positive market outlook. Rates reached their best point in a couple of years back in October before deteriorating slightly through November and December. Over the last few days, however, rates have started improving again. The bond market and traders appear optimistic about the incoming administration change. Overall, we do not anticipate massive rate jumps or huge reductions this year. So, what you see right now is likely what you get for the foreseeable future.
Advice for Sellers
Sellers can expect steady, normalized price appreciation of around 3% to 4% rather than the rapid spikes seen a few years ago. Since World War II, housing has historically appreciated at 3% to 4% annually. Property values continue climbing despite recessions, wars, and high interest rates. Even through the turbulence of recent years, real estate proves remarkably resilient. Because prices remain stable and we aren’t seeing an overwhelming flood of new inventory hit the market, sellers still hold a very strong position today. Free Home Valuation page
Advice for Buyers
Homebuyers should focus on finding the right property for their long-term life goals rather than letting minor price gaps ruin a deal. For example, Mike’s friend recently found his absolute dream house. It had a pool and felt just like the home he grew up in. However, negotiations stalled over a $15,000 price difference. Mike finally asked him, “Are you really going to walk away from your dream home over only $15,000?” He bought the house, and he has lived there happily for 10 years now. In fact, his wife still thanks Mike for that conversation once a year! That $15,000 gap was easily made up in appreciation during their very first year just for keeping the lights on. Remember, you are making a major life decision, not just a financial one.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started! If you are one of the 80% of buyers who need financing, Mike Hogan and his team would love to help you at 509-747-1300.
FAQ
In 2024, the average home sale price in Spokane climbed 3.4% to reach just over $480,000. At the same time, closed sales increased by nearly 3%, showing steady growth and strong stability across the local real estate market.
Yes, housing inventory in Spokane increased by roughly 19% over the past year. Although 25% to 30% of active homes temporarily came off the market at the beginning of the year, that inventory is expected to return during the spring selling season.
We do not expect massive rate reductions this year. Instead, mortgage interest rates will likely stay within a tight range of 6% to 7% throughout 2025. Because rates are remaining stable, waiting for a massive drop is not a recommended strategy.
Absolutely. Since World War II, housing has consistently appreciated at a normal rate of 3% to 4% annually. Because prices and rates are stable, buyers can confidently focus on finding a home that fits their life rather than trying to time the market
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