Spokane home prices kicked off January 2024 with a 1.5% to 5% increase in both median and average sale prices compared to December 2023. As mortgage rates stabilized under 7%, local buyers began shaking off winter hibernation to jump back into the market. Here is our complete breakdown of what these early 2024 numbers mean for Spokane buyers and sellers.
Pricing and Inventory Trends
Spokane home prices started 2024 on a high note, with median and average sale prices jumping 1.5% to 5% in January compared to December 2023. Active inventory climbed higher as well, giving local shoppers more choices as buyer activity picked up. Closed sales numbers in January reflected a lagging indicator because they represented contracts written during a quiet December pending period. Even so, tight overall inventory continues to keep property values firm across local neighborhoods.
Mortgage Rate and Economic Context
Spokane mortgage interest rates stabilized under 7% in early 2024, holding far below the 25-year highs of 8% seen in October 2023. Government-backed mortgage products like FHA and VA currently offer particularly strong interest rates compared to conventional loans. Conventional mortgage options faced artificial rate pressure due to recent loan-level price adjustments. Meanwhile, inflation dropped to 2.4% year-over-year, drawing closer to the Federal Reserve’s 2% target. While financial markets once hoped for a Fed rate cut in March 2024, experts now place those chances near zero and look toward May instead. If May brings a cut, we will likely see mortgage markets price that news in during March and April. You can compare these figures with our January 2024 Spokane Real Estate Market Update.
Advice for Home Sellers
Spokane home sellers benefit from rising buyer demand in early 2024 as shoppers return to the market faster than new listings appear. Because price growth gained momentum in January, sellers who price accurately are seeing strong buyer interest. You do not need to wait for interest rates to drop further before listing your property. Buyers move because of life changes like job transfers or growing families, so waiting on headlines often means missing active shoppers. Plus, if mortgage rates ease further into late spring, buyer competition will only intensify. To see what your property is worth in today’s market, check out our Instant Spokane Home Valuation Tool.
Advice for Home Buyers
Spokane home buyers can find distinct opportunities today on homes that sat on the market during the winter lull. Since buyer hibernation is ending, acting now helps you avoid the heavier competition expected later this spring. FHA and VA loans currently provide lower interest rates for qualifying buyers than standard conventional loans. In addition, you can use temporary or permanent rate buy-downs funded by seller credits to lower your monthly payment further. Rather than trying to time the market, buying now locks in today’s price while leaving the door open to refinance down the road.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started! If you need mortgage advice, you can also reach Mike Hogan at Chimney Rock Mortgage by calling 509-749-2222 or visiting chimneyrockmortgage.com.
FAQ
Spokane home prices rose between 1.5% and 5% in January 2024 for both median and average sale prices compared to December 2023. While closed sales numbers reflected a slower December pending period, low overall inventory helped keep local real estate values firm as buyer activity started increasing again.
Spokane mortgage interest rates have stabilized under 7% in early 2024, coming down significantly from the 8% highs of October 2023. FHA and VA loans currently offer lower interest rates than conventional loans, and industry experts anticipate further rate improvements as the Federal Reserve approaches potential cuts later in May.
Financial markets now show nearly zero chance of a Federal Reserve rate cut in March 2024. The Fed is focusing on pulling inflation down to its 2% target from 2.4%. However, analysts expect rate reductions could begin around May 2024, which may help mortgage rates ease further into spring.
Early 2024 offers strong opportunities for Spokane buyers before spring competition increases. With rates holding under 7% and government loan options like FHA and VA offering favorable pricing, buyers can negotiate seller credits, rate buy-downs, or price concessions on homes that lingered on the market over winter.
