Spokane home prices gained ground in November 2023 as the median sale price reached $419,406, representing a 2% monthly increase and a 3% gain compared to November 2022. At the same time, mortgage rates pulled back significantly from their 8% peak, offering buyers and sellers a promising setup heading into 2024. Here is our full breakdown of where the local housing market stands and what you can expect as we look ahead.
Pricing and Inventory Trends
Spokane’s median home sale price rose to $419,406 in November 2023, marking a 3% increase over November 2022. Both average and median sale prices climbed a little over 2% month-over-month, showing how resilient local home values remain. Active inventory continues to stay exceptionally tight, sitting 30% to 40% below typical historical levels. Because overall supply is low, homes are selling quickly across Spokane neighborhoods. In fact, average days on market ranged between 19 and 25 days in November. So if no new listings entered the market today, the available homes would sell out in just a few months.
To put this in perspective, back in January 2016, the median sale price in Spokane was just $179,700. In about seven years, local home values have more than doubled. As Rich jokes, all you had to do was maintain the property, eat, sleep, and unlock the front door! Some buyers worry about timing the market, especially with an election year coming up in 2024. But looking back at historical data since 1990, real estate values rose through almost every single presidential election cycle, Y2K, and major geopolitical events. In fact, the only sustained downturn occurred during the 2008 housing crash. You can compare this to our previous data in our October 2023 Spokane Real Estate Market Update. Time in the market always beats timing the market.
Mortgage Rate and Economic Context
Conventional mortgage interest rates dropped nearly a full percentage point in late 2023, falling from an 8.04% peak down to 7.17%. FHA mortgage rates also saw a welcome drop, moving from an average peak of 7.31% down to 6.98%. Todd Feniger (whom Rich loves to introduce with a mispronounced last name on purpose!) from Catalyst Lending Team joined us to break down these numbers. Mortgage rates are driven by investment in mortgage-backed securities, and recent lower inflation data is giving financial markets relief.
Year-over-year inflation figures have dropped below 1%, which is exactly what the Federal Reserve wants to see. While the Fed fund rate does not directly set mortgage rates, the two figures share a strong correlation. As inflation continues to cool, analysts expect mortgage rates to maintain a downward trend through 2024. We could even see rates with a 5 in front of them by late 2024, potentially settling around 5.9%. There will still be weekly ups and downs, but the long-term direction points toward improved affordability.
Advice for Home Sellers
Spokane sellers remain in a favorable position because housing inventory is still 30% to 40% lower than pre-pandemic averages. Since low inventory keeps home values steady, sellers do not need to discount prices aggressively. In fact, well-priced homes in Spokane are still going under contract in under 30 days. Many sellers ask if they should wait until after an upcoming election to list their property. However, history demonstrates that election years do not cause home values to drop or buyer demand to stall out.
Instead, buyers move because of major life events like job changes, growing families, or retirement. So waiting for political headlines usually just means missing out on active buyer interest. If mortgage rates continue dropping into spring 2024, more buyers will enter the market, which will increase demand for your home even further. To find out what your property is worth in today’s market, check out our Instant Spokane Home Valuation Tool.
Advice for Home Buyers
Buying a home today allows you to start building real wealth on the full asset value right away rather than waiting for rates to fall. Many people wonder if they should invest in stocks instead of real estate. But Todd pointed out a key advantage of homeownership: leverage. If you invest $10,000 in the stock market, your compound return starts on that initial $10,000. But if you put $10,000 down on a $300,000 home, your appreciation starts on the entire $300,000 asset value from day one.
When rates peaked at 8% in November, many buyers paused their search. However, waiting for rates to hit 5.9% before buying creates a big catch: hundreds of other buyers will jump back into the market at the same time. That surge in demand will drive home prices up faster. If you buy now while competition is quieter, you secure today’s price and can always refinance your mortgage when rates drop later.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started!
FAQ
In November 2023, the median home sale price in Spokane was $419,406. This reflects a monthly increase of over 2% and a year-over-year gain of over 3% compared to November 2022. Homes sold relatively quickly, averaging 19 to 25 days on market across local neighborhoods.
Yes, mortgage rates dropped significantly in late 2023. Conventional rates peaked at 8.04% before falling to 7.17%, while FHA rates dropped from 7.31% to 6.98%. Analysts anticipate rates could continue trending downward into 2024, potentially reaching the upper 5% range as inflation data stabilizes.
Historical data since 1990 shows that presidential election years rarely cause home prices to drop. Aside from the 2008 housing crash, real estate values consistently appreciated through multiple elections, wars, and economic shifts. People continue buying homes based on personal life events rather than political cycles.
Homes in the Spokane area sold in an average of 19 to 25 days in November 2023. Because active inventory remains 30% to 40% below typical historical levels, well-priced properties continue to sell in under a month despite higher interest rates.
