What’s Going To Happen To Rates During The Election? | June 2024 Spokane Market Update

Spokane’s average home price climbed to $492,000 in May. That is a solid 4.7% increase year-over-year. At the same time, new housing inventory jumped 28% from last year. This change gives buyers more breathing room right now.

Pricing and Inventory

Spokane’s average home price reached $492,000 in May, up 4.7% from last year, while active supply grew to 2.5 months. This inventory increase means buyers finally have more homes to choose from. Plus, closed sales bumped up 6.4% month-over-month. However, properties are sitting on the market just a little bit longer. Even so, prices remain completely stable. In fact, values continue to appreciate. So, if you have been waiting for the market to crash, the data simply doesn’t support that. We are just seeing a healthy shift toward a more balanced environment. May Market Update

Rate and Economic Context

Mortgage rates dipped slightly to start May as inflation showed signs of stabilizing, but the upcoming presidential election could shift things. A lot of people ask what will happen to rates after November. So, let’s look back at 2016. Most people assumed rates would drop after Donald Trump won. But here’s the catch. Rates actually went up almost half a point over the next two months. Why? Because traders expected lower corporate taxes. So, money moved into stocks, and bonds became less popular. This year is slightly different because both candidates are known entities. That takes away some policy uncertainty. But overall, trying to time the market around an election is a major gamble.

Advice for Sellers

Real estate continues to serve as a massive safety net, with rising equity giving Spokane homeowners the flexibility to fund major life changes. Most of us buy a home for stability. However, it eventually turns into an incredible financial asset. For example, I am working with a client who is transitioning into extended care. Her home equity is funding that care for the next several years. Mike sees the exact same thing with his parents. Because they own their home, they have the freedom to choose their assisted living setup. Plus, they can pay for it indefinitely. That kind of long-term benefit is hard to beat. Home Valuation

Advice for Buyers

If you are waiting for the perfect time or the perfect interest rate to buy a home, you are likely missing out on building equity right now. Real estate is incredibly resilient. Plus, almost all real estate choices are actually life decisions. You get married, you have a baby, or your kids move out. Even if you paid a premium a few years ago because of low supply, you still built equity. So, if you hold out for the perfect house, you might wait two or three years. Instead, buy the house that meets your needs today. Then, paint it the colors you want and make it your own. If you need financing help, Mike Hogan with Chimney Rock Mortgage handles 1-4 unit residential properties. He can be reached directly at 509-747-1300.

Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started! You can also find us on Facebook, Instagram, and the interwebs—which Al Gore invented, with pants on, we think.

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