Spokane housing inventory spiked 31.5% year-over-year in April, giving local buyers significantly more options as year-to-date median prices held steady with a 7% gain. Median home prices rebounded nearly 1% in April after a slight drop in March, balancing out market trends across the region. With key Fed interest rates holding steady and inventory expanding, buyers and sellers are finding new room to negotiate.
Pricing and Inventory
Spokane median home prices rose nearly 1% in April, bringing year-to-date price appreciation to 7% while active inventory jumped 31.5% year-over-year. Overall home sales also ticked up about 4% month-over-month. After seeing prices drop just over 1% in March, April brought a quick rebound that evening out regional home values.
The 31.5% surge in active inventory is the biggest win for buyers right now. Having more homes on the market means you finally have options to compare rather than competing in a tight squeeze. As a result, buyers have gained real leverage when making offers.
Rate and Economic Context
Average mortgage rates have trended down roughly 0.25% since January 1, with recent Federal Reserve announcements keeping benchmark interest rates flat. While April closed with rates slightly higher than where they started, May is already moving in a positive direction as interest rates begin to slide down again.
At its latest meeting, the Federal Reserve kept key interest rates unchanged. So long as inflation stays under control, we expect interest rates to remain fairly flat without major swings up or down. On top of that, mortgage rates continue to track alongside lower oil prices. Recent surveys show that 72% of buyers say rates are actively impacting their decision to purchase, but headline numbers online don’t tell the whole story.
Unlocking 5% Mortgage Rates with Seller Concessions
Buyers can secure mortgage rates below 6% by negotiating seller concessions to fund permanent or temporary interest rate buy-downs. Don’t assume the interest rate you see quoted on TV or online is your only option. In fact, we recently helped a client negotiate a 6% seller concession from the seller, which brought their mortgage rate down to 5.875%.
As inventory climbs, sellers are far more willing to negotiate. Here is how seller concession limits work across different loan options:
- FHA Loans: Allow up to 6% in seller concessions with as little as 3.5% down.
- Conventional Loans: Allow up to 6% in seller concessions when putting 10% or more down.
- WSHFC Down Payment Assistance: Washington State Housing Finance Commission programs allow buyers to pair down payment assistance with up to 6% in seller concessions.
- VA Loans: Offer incredible flexibility for military buyers. Veterans can use up to 4% in seller concessions to buy down rates, plus additional allowances for bona fide fees. Even better, VA seller concessions can be used directly to pay off a buyer’s existing credit cards or auto loans to help them qualify!
Advice for Sellers
Spokane sellers should expect to offer concessions or rate buy-downs to stand out in a market where active inventory is up 31.5% year-over-year. Because buyers are watching their monthly payments closely, offering a seller concession to buy down their rate is often much more attractive than simply cutting your listing price.
Offering a rate buy-down keeps your sale price high while giving the buyer a manageable monthly payment. Home Valuation page. We can help you look at recent sales in your specific neighborhood so you can position your listing effectively.
Advice for Buyers
Buyers should treat every property view as a negotiation opportunity to secure rate buy-downs or closing cost assistance. With 31.5% more inventory on the market than last year, you don’t have to accept advertised rates at face value.
Focus on your total monthly payment rather than just the purchase price. By pairing seller concessions with temporary or permanent rate buy-downs, you can get a rate starting with a 5 right now—saving hundreds of dollars every month. Previous month’s update.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started! If you want to explore mortgage options or rate buy-down packages, give Mike a call directly at 509-747-1300.
Frequently Asked Questions
Spokane home prices are holding steady, with median prices rebounding nearly 1% in April after a slight drop in March. Year-to-date, real estate prices across Spokane are up 7%. While monthly fluctuations happen, long-term market trends point to consistent property value growth across the region.
Buyers can get a 5% range interest rate by negotiating seller concessions during the home purchase. Sellers provide funds from sale proceeds to buy down the buyer’s mortgage rate permanently or temporarily. For example, a 6% seller concession can drop a buyer’s rate down to 5.875%.
Yes, active home inventory in Spokane is up 31.5% year-over-year. This increase gives homebuyers significantly more property options and leverage to negotiate seller concessions, rate buy-downs, or price adjustments compared to tighter real estate markets over recent years.
VA loans allow seller concessions up to 4% for rate buy-downs and closing costs, plus bona fide fees. Unlike conventional loans, VA concessions can also be used directly to pay off a veteran’s existing debts, like credit card balances or car loans, helping them qualify for a home.
Coffee Break at The Little Garden Cafe
We stopped by The Little Garden Cafe (formerly known as the Ultimate Bagel—R.I.P.!) for this month’s market update. While they were fresh out of bagels when we visited, the coffee and community vibe made it a great backdrop for our chat. Also, a huge Happy Mother’s Day to all the moms out there! Fun fact: Mother’s Day falls right on the same day as my birthday this year—which I’m pretty sure is the best birthday gift a mom could ever ask for!
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