Spokane’s average home sale price rose 1.7% to $522,000 in June, while active housing inventory jumped an impressive 18% compared to last year. Even though those price numbers look great on paper, the actual volume of homes selling has started to trend downward. We are moving into a very different summer market than we saw a few years ago.
Pricing and Inventory Data
The average home sale price in Spokane increased by 1.7% to $522,000 this June, but active housing inventory is up 18% year-over-year. This price jump looks fantastic for sellers at first glance. However, you really need to look closer at the total volume of sales. The actual number of closed and pending sales has started coming down, with new pendings dropping slightly by about 1%.
Meanwhile, fresh inventory is hitting the market fast. New listings are up 8% just from last month. In fact, since June 2021, we have actually seen a massive 400% increase in the number of listings sitting on the market without selling. Because of this, sellers have much more competition today, and buyers finally have breathing room to make choices.
Rate and Economic Context
National mortgage rates dropped to roughly 6.675% by the end of June, and local Spokane buyers often secure rates about an eighth of a point even lower than that. Rates actually improved between an eighth and a quarter of a point throughout the month. We started June around 6.85% nationally before settling down a bit.
Better yet, government loans like VA and FHA are currently sitting down near 6.125% to 6.25%. So don’t always believe the scary, inflated rates you read about in national headlines. Those numbers probably are not even accurate for your specific situation.
Will the Fed Drop Mortgage Rates?
The Federal Reserve lowering its overnight bank rate does not have a direct correlation to dropping 30-year mortgage rates. There is a lot of built-up anticipation about the Fed lowering rates soon. However, at the June meeting, all 13 voting members unanimously voted to keep their rate steady. Think of it like a Supreme Court ruling. When the vote is completely unanimous, it sends a very clear message that there is no internal push to cut rates right now.
But even if they do cut it eventually, that is just the rate banks use to borrow money. It does not automatically lower your mortgage rate. In fact, the last two times the Fed did a massive 100-basis-point rate cut, 30-year mortgage rates actually went up! Mortgages follow long-term financial markets, employment, and inflation much more closely than Federal Reserve announcements.
Advice for Sellers
Spokane sellers must make sure their property is in the best possible condition and priced below the immediate competition to attract offers today. Because we have seen a 400% increase in unsold inventory over the last four years, you cannot just stick a sign in the yard and expect multiple offers anymore.
Average days on the market are creeping up for homes that need work or are overpriced. We are no longer in the frantic seller’s market of 2021. That said, home prices are still up roughly 30% since COVID started. So even if you have to list a bit below your neighbor’s comparable house, you are still walking away with incredible historical equity. Home Valuation page.
Advice for Buyers
Buyers have 18% more inventory to choose from compared to last year, meaning you actually have time to compare homes without frantic bidding wars. With more inventory sitting on the market, you have real choices again. Plus, local mortgage rates are improving slightly.
You do not need to wait on the sidelines hoping the Fed magically slashes rates. If you have a life event or a strong motivation to move, now is a fantastic time to get out there. Previous month’s update. Our market is providing much better opportunities to negotiate than we have seen in recent years.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started! If you want to review your specific borrowing options, reach out to Mike Hogan at Chimney Rock Mortgage by visiting chimneyrockmortgage.com or calling 509-747-1300.
Frequently Asked Questions
The average home sale price in Spokane reached $522,000 in June. This represents a 1.7% increase compared to previous months. However, the total volume of closed sales is starting to decline slightly, signaling a shift toward a more balanced local housing market.
Yes, active housing inventory in Spokane is up 18% year-over-year. We also saw an 8% increase in new listings just from May to June. This growing supply means home buyers finally have more options to choose from without fighting frantic bidding wars.
No, the Federal Reserve’s overnight bank rate does not directly control 30-year mortgage rates. Mortgages are actually tied much closer to long-term economic indicators like inflation, employment, and the 10-year Treasury note. Sometimes mortgage rates even go up immediately following a Fed rate cut.
Mortgage rates improved slightly throughout June, ending the month around 6.675% nationally. In Spokane, buyers can often secure rates an eighth of a point lower than the national average, with government loans like FHA and VA sitting closer to the low 6% range.
Lunch Break at Clark’s Fork
We filmed this month’s update after grabbing lunch over at Clark’s Fork on Hamilton Street in Spokane. All three of us ended up ordering the teriyaki wrap special, and it was absolutely delicious. The biggest surprise was the homemade potato chips on the side. We were expecting just a basic plain chip, but they were incredibly crunchy and perfectly seasoned!
(We even had to pause our video shoot briefly because the neighborhood Wednesday noon lawnmowers decided to crash our audio.) If you need a great, fresh sandwich spot in the U-District, definitely check them out.
