The Spokane real estate market is moving quickly into the spring season, with active housing inventory up 16% year-over-year. Even though we saw fewer new listings hit the market this month, buyer demand remains strong and the average sale price is holding steady at $462,000. Despite some recent uncertainty in the financial world, conditions are actually stabilizing in a way that benefits both buyers and sellers.
Pricing and Inventory
The average home sale price in Spokane is currently $462,000, and active housing inventory is up 16% compared to this time last year. That average price is down just under 3% month-over-month, but it is actually up 4.9% year-over-year. That puts our market right in line with normal historical averages of 4% to 5% annual growth.
At the same time, we are not seeing a flood of new homes hit the market. In fact, new listings declined by 30% month-over-month and dropped over 7% year-over-year. Because fewer new homes are coming available, the active inventory we do have is getting steadily absorbed by buyers. Closings ticked up over 2% for the month, and new pending sales are up a couple of points across the board.
Rate and Economic Context
Mortgage rates are currently hovering in the low to mid-6% range, trending better than they have in nearly a year. Outside of a brief window last fall, these rates are the lowest we have seen since late 2022. Interestingly enough, recent uncertainty in the financial markets has actually helped drive mortgage rates down.
While rates might inch a bit lower over the summer, we don’t expect them to get dramatically better anytime soon. But here is the thing: your purchasing power is actually really good right now. Real estate is an incredibly resilient asset. If you buy now and rates drop significantly later, you can always refinance into that dream rate.
Advice for Sellers
With new listings dropping 30% month-over-month, sellers have a massive opportunity to stand out with less competition. Active properties are taking a little longer to sell right now, which is totally normal. But because fresh inventory isn’t flooding the market, buyers are focused on what is already out there.
If rates continue to improve, even more buyers will jump in and quickly absorb the current options. That tight supply is ultimately what drives prices up. So if you are thinking about selling, prices are stable and the market is moving. Home Valuation page We can help you look at the numbers for your specific neighborhood to get a solid game plan together.
Advice for Buyers
Waiting just one year to buy a home could cost you roughly $25,000 in lost appreciation and add nearly $200 to your future monthly payment. That is the real cost of waiting. Because homes are appreciating at a normal 4% to 5% rate year-over-year, houses are literally just getting more expensive while you sit on the sidelines. On top of that, you are missing out on paying down a mortgage and building your own net worth.
Trying to perfectly time interest rates or housing prices is almost impossible. As we like to say, it is like trying to stop a freight train on a dime—the train actually starts stopping a mile before it reaches the station! There are still great options out there right now, including temporary rate buy-downs that can get your rate into the high 5% range. Previous month’s update. The environment is getting better, so it is a great time to shop.
Looking to buy, sell, or invest? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started! If you need a mortgage, you can reach our lending line directly at 509-747-1300.
Frequently Asked Questions
The average home sale price in Spokane is currently $462,000. While that represents a slight 3% dip month-over-month, prices are actually up 4.9% compared to this time last year. This shows a very healthy, normal rate of steady appreciation for our market.
Mortgage rates have been trending down recently, sitting comfortably in the low to mid-6% range. Outside of a short window last fall, these are some of the best interest rates we have seen since late 2022.
Yes, the active housing inventory in Spokane is up 16% year-over-year. However, the number of brand-new listings coming onto the market actually dropped by 30% month-over-month, meaning buyers are steadily absorbing the homes that are currently available.
Waiting can be very expensive. If you delay buying for a year, normal appreciation could increase a home’s price by $25,000. That jump in purchase price would likely add about $200 to your future monthly mortgage payment, wiping out the savings of a slightly lower rate.
Grabbing Coffee at Blissful Blends
This month, we fueled our market update with a stop at Blissful Blends right here in Spokane. It is always great to support local businesses, and it’s a fantastic spot to grab a coffee or an energy infusion while talking real estate.
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