Spokane’s median home price reached $439,000 in October, representing a solid 6.7% jump over last year. At the same time, new housing inventory grew by 20%. As a result, buyers finally have a lot more choices when looking for a home.
Pricing and Inventory
Spokane’s median home price increased to $439,000 in October, which is a 6.7% jump compared to last year. Meanwhile, the average sale price hit $484,000, up 8.2% year-over-year. Even with interest rates fluctuating, we continue to see strong price growth across the local area. New inventory also jumped 20% compared to last year, meaning more homes are hitting the market. Because of this, buyers have far more options to explore. On top of that, pending home sales increased both month-over-month and year-over-year, showing that buyer activity remains very steady. Previous month’s update
Rate and Economic Context
Mortgage rates experienced extreme volatility recently, but a 25-basis-point rate cut by the Federal Reserve signals that inflation is cooling. Rates actually improved significantly during the first few weeks of October before slipping backward as election anticipation set in. In fact, post-election financial markets reacted very similarly to 2016, proving that much of the volatility was already priced in. Because the market changes so rapidly day-to-day, we highly recommend locking your rate now. If rates happen to drop significantly before you close, your lender can often float you down to the better rate. But you definitely do not want to risk waking up to a quarter-point hike while floating unprotected.
Advice for Sellers
Spokane home sellers continue to benefit from steady market activity, with average sale prices rising 8.2% year-over-year to $484,000. Even though 20% more new inventory hit the market compared to last year, pending sales actually increased. This means that buyer demand is strong enough to absorb the extra homes. So, if you are thinking about selling, the buyers are absolutely out there. You just need to ensure your home is prepped, priced correctly, and ready for the market. FREE Home Valuation page
Advice for Buyers: Asset Depletion Loans
If you lack traditional W-2 income but have substantial savings, you can use an asset depletion loan to qualify for a home purchase. We usually look closely at your debt-to-income ratio. However, an asset depletion loan actually qualifies you based on your liquid assets rather than your tax returns. The lender calculates how long your assets would cover the mortgage payment over a set period, like 84 months. For example, if your new house payment is $5,000 a month, you would only need about $420,000 in assets to qualify. You can use this product for a primary residence, an investment property, or a vacation home. It is a fantastic option if you are retired or if you run a business and write off most of your income.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started! If you want to explore an asset depletion loan, reach out to Mike Hogan at 509-747-1300 or visit chimneyrockmortgage.com.
FAQ
In October, the median home price in Spokane reached $439,000, which is a 6.7% increase year-over-year. Meanwhile, the average sale price rose 8.2% to $484,000. Overall, local property values remain very strong despite shifting mortgage rates.
Mortgage rates recently experienced high volatility around the election. However, the Federal Reserve just announced a 25-basis-point rate cut. This shows inflation is cooling, though buyers should still lock their rates now to protect against sudden market shifts.
An asset depletion loan allows buyers to qualify for a mortgage using their liquid assets rather than traditional income. Lenders calculate how long your assets would cover the payment—for example, dividing $420,000 by 84 months to cover a $5,000 monthly payment.
Yes, it is a great time to buy. New housing inventory jumped 20% year-over-year in October, giving you far more choices. Plus, pending sales are up, showing that buyers are successfully finding homes and securing reasonable interest rates.
This month, we are excited to spotlight one of our amazing agents, Allison Aall! Allison grew up in Seattle but has called Spokane home for the last nine years. She spent almost a decade working as a barista, which helped her build fantastic local relationships. After buying her own house in 2021, she discovered her true passion for real estate. Today, she loves guiding first-time homebuyers through the entire process. Plus, Allison has a great eye for design and loves DIY projects that make a property look beautiful before it hits the market. You can follow her tips and aesthetic updates on Instagram at @alisonaallrealestate, or reach her directly at 425-679-1621.
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