Spokane’s median home price dipped to $405,000 in October. Meanwhile, active inventory surged 38% year-over-year to reach 3,330 available homes. While prices cooled from their summer peak, overall monthly housing payments are actually down significantly from last year. As a result, we are seeing a steady shift toward a balanced market as we head into 2026.
Pricing and Inventory
The median home sale price in Spokane sits at $405,000, which is down 3.6% from last month but still up 3.2% year-to-date. We started the year around $393,000 and hit a peak of $440,000 in May. So, we are simply seeing some normal seasonality right now.
On top of that, active inventory jumped 38% year-over-year. We currently have about 3,330 homes sitting on the market. Because of this extra supply, our absorption rate dropped to just 20%. In fact, only one out of every five homes listed is going under contract right now.
Rate and Economic Context
Mortgage rates hovered steadily around 6.125% through October, driven by stable oil prices and cooling inflation. Interestingly, the Federal Reserve cut their overnight rate by a quarter point, but mortgage rates barely moved. Furthermore, a recent government shutdown limited the release of new employment data, keeping financial markets quiet.
The great news is that the average monthly mortgage payment is down 4.9% year-over-year. In fact, if you compare today’s rates to the May peak, buyers are saving roughly $350 a month on their payments!
Our 2026 Spokane Real Estate Predictions
We predict Spokane home prices will appreciate between 2% and 3% in 2026, while mortgage rates will likely settle between 5.5% and 6%. As inventory continues to build, we expect to hit a traditional buyer’s market by the third or fourth quarter of 2026. A buyer’s market happens when we reach six or more months of available supply.
However, government intervention could always change things. For instance, there is talk of an emergency housing bill right now. We are also hearing rumors about taking Fannie Mae and Freddie Mac public again to appease stockholders. Either of those major events could completely shake up these predictions.
Advice for Sellers
Sellers must price their homes aggressively because only 20% of active listings are currently going under contract. With over 3,330 homes on the market, your listing is facing intense competition. Buyers are taking their time, and closed sales are down 4.6% compared to last year.
If you want to sell before winter really sets in, you cannot afford to overprice your property. Home Valuation page. We can help you look at the real data so your home actually stands out to the buyers who are ready to make a move.
Advice for Buyers
Waiting for lower interest rates next year could actually cost you $9,100 more in down payment cash. Let’s do the exact math on waiting. If a $405,000 house appreciates by 3% next year, it will cost $417,000.
Even if rates drop from 6.125% to 5.75%, that higher purchase price wipes out your savings. You would save a measly $20 a month, but you would pay over $9,000 more upfront. At that pace, it would take you 37 years just to break even! So, if you are ready to move, the best time to buy is simply when it makes sense for your family. Previous month’s update.
Looking to buy, sell, or invest? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started! If you have any questions on how to finance a house, reach Mike Hogan at Chimney Rock Mortgage by calling 509-747-1300.
Frequently Asked Questions
The median home sale price in Spokane is currently $405,000. While this is a 3.6% drop from the previous month, local home values are actually up 3.2% year-to-date after starting the year at $393,000.
Yes, active housing inventory in Spokane increased by 38% year-over-year. There are currently over 3,330 homes on the market. Because of this, the area is steadily pushing toward a traditional buyer’s market.
We predict mortgage rates will settle between 5.5% and 6% in 2026. While the Federal Reserve recently cut their overnight rate, long-term mortgage rates have remained incredibly stable around the low 6% range.
Waiting to buy a house rarely saves you money. If a $405,000 home appreciates by just 3% next year, the higher purchase price will cancel out the monthly savings from a slightly lower interest rate.
Lunch Break at Neato Burrito
We filmed this month’s update from Neato Burrito down on First Street in downtown Spokane! It was our first time stopping in, and we can confirm the food is absolutely incredible. The burritos here are massive, so I definitely had to apologize in advance in case I ended up in a burrito coma during the video. If you are downtown and hungry, you have to check them out.
