Spokane’s average home sale price rebounded sharply to $513,000 in May, representing an 8% increase month-over-month and a 3.8% gain year-over-year. Active inventory also expanded by 18% month-over-month to give buyers more choices without driving down values. While scary national headlines stir up fear of a 2008-style housing crash, our local numbers show a balanced, highly resilient market.
Pricing and Inventory Data
The average home sale price in Spokane reached $513,000 in May, rising 8% month-over-month and 3.8% year-over-year. On top of price growth, closed sales jumped 20% month-over-month and 3.8% year-over-year. Pending sales—our leading indicator for upcoming activity—rose 5.5% over April and 18.6% compared to last year.
Active inventory grew 18% month-over-month, bringing Spokane to roughly 3.2 months of supply with homes averaging 36 days on market. So while properties are sitting longer than they did during the 2020 frenzy, 36 days is nowhere near a crash. In fact, 14 years ago, 90 to 120 days was normal for our local market!
Rate and Economic Context
National mortgage rates averaged 6.93% in May, but recent job market reports are helping local rates improve heading into summer. The latest ADP private jobs report showed slowing job growth and corporate layoffs. As a result, long-term bond rates are easing, which helps lower mortgage interest rates.
Financial markets hate uncertainty, so international news and tariff talks have created short-term volatility. Money has recently skipped traditional bonds for gold or foreign investments, but interest rates are already bouncing back to lower levels. Local buyer demand remains steady despite these shifting national economic conditions.
Why Spokane Is Not Heading for a 2008 Housing Crash
Spokane County home prices only dropped 9.8% during the entire 2008 housing crash, while national markets suffered 20% to 40% declines. Scary headlines asking if 2008 is happening again completely ignore Spokane’s actual history and current facts. Local foreclosures currently represent less than 0.1% of all Spokane area sales.
Back in 2008, markets were flooded with over 18 months of inventory, zero-down subprime loans, and speculative building. Today, Spokane still faces an overall housing shortage. Furthermore, 10 second-home states like Florida, California, and Arizona are seeing 20% price cuts, but Spokane was never a speculative second-home bubble. Modern mortgage regulations also ensure buyers can actually afford their payments.
Advice for Sellers
Sellers should expect their home to take about 36 days to sell in today’s market, requiring realistic pricing and strong preparation. Because active inventory grew 18% month-over-month, buyers have more options and are taking time to evaluate listings. However, new pending sales are up 18.6% year-over-year, proving that serious buyers are actively writing offers.
You are no longer in the wild seller’s market of 2020, but prices are still up 3.8% year-over-year. So if you price your home right for current conditions, you will capture buyer attention quickly. Home Valuation page. Check your home’s current value online to get started on your strategy.
Advice for Buyers
Buyers currently enjoy over three months of home inventory in Spokane, offering significantly better choices and negotiating room than previous years. Pending sales jumped 18.6% year-over-year, showing that smart buyers are securing homes rather than waiting on headlines. Plus, mortgage rates hit their best levels in over a month as job reports shifted.
You don’t need to fear a 2008-style market crash because Spokane’s fundamentals are rock solid. So take advantage of expanding inventory and negotiating power while other buyers stay on the sidelines. Previous month’s update. Review our past market update to see how inventory has grown this spring.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started! If you have mortgage questions or want to review your borrowing budget, reach Mike Hogan at Chimney Rock Mortgage at 509-747-1300.
Frequently Asked Questions
No, Spokane is not heading for a 2008 housing crash. During the 2008 downturn, national markets fell 20% to 40%, but Spokane County prices dropped just 9.8%. Today, local foreclosures are under 0.1%, supply sits at a healthy 3.2 months, and strict lending rules prevent subprime defaults.
The average home sale price in Spokane reached $513,000 in May. This reflects an 8% increase compared to April and a 3.8% gain compared to the same period last year. Home prices continue to show steady, healthy growth across Spokane County.
Homes in Spokane currently average 36 days on the market before going under contract. While this is longer than the fast-paced 2020 pandemic market, it is significantly faster than historical norms. Fourteen years ago, average sales took 90 to 120 days.
Mortgage rates averaged 6.93% nationally in May, but recent economic reports are helping rates ease lower. Slowing job growth and corporate layoffs typically push long-term bond rates down, creating better mortgage borrowing conditions heading into the summer market.
Coffee Break at Wake Up Call in the U-District
We recorded this update while fueling up at Wake Up Call on Sprague Avenue in Spokane’s U-District! It’s a fantastic local spot with great energy, fast drive-thru service, and top-tier coffee drinks. If you are anywhere near the University District, definitely stop by and check them out!
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