Spokane’s average home price reached $491,000 in August, holding steady year-over-year while mortgage rates improved to their best levels in 18 months. At the same time, new pending sales surged by 20% compared to last year, showing that buyers are actively stepping back into the market.
Pricing and Inventory Data
Spokane’s average home price reached $491,000 in August, holding steady with virtually zero change month-over-month and a modest 1% increase year-over-year. Closed sales totaled 570 homes for the month, dropping 11% compared to last August. However, new pending sales jumped 20% year-over-year, serving as a real-time indicator of rising buyer activity. Because inventory levels remain low, prices are not dropping. Instead, buyers get stable property values without feeling forced to make snap decisions on the spot. So, you can actually tour multiple homes before writing an offer.
Rate and Economic Context
Mortgage rates dropped to their best levels in nearly 18 months as bond markets priced in an expected 0.50% rate cut from the Federal Reserve. Federal Reserve Chairman Jerome Powell indicated at Jackson Hole that rate cuts are coming. Because bond traders already priced in a 50 basis point reduction, an official cut of that size won’t lower mortgage rates much further. In fact, if the Fed cuts rates by only 0.25%, mortgage rates could actually jump higher because the market expected more. On top of that, upcoming elections usually limit dramatic rate improvements. So, if you are under contract today, we recommend locking in your rate immediately to remove that risk.
Advice for Sellers
Spokane sellers benefit from strong price stability today, as average values hold firm at $491,000 despite shifting buyer conditions. While sales activity slowed down slightly year-over-year, steady price appreciation protects your equity. Plus, pending contracts jumped 20%, showing that motivated buyers are actively submitting offers. As buyers navigate new representation agreements in Washington, sellers can still offer credits to keep transactions moving smoothly. FREE Home Valuation page
Advice for Buyers
Lower interest rates and steady prices give Spokane buyers significantly more affordability and purchasing power than they had earlier this year. Even a slight rate improvement gives you $10,000 to $15,000 in extra buying power, which can mean getting that extra bedroom or larger yard. In Washington, buyers now sign a representation agreement that lets you negotiate your agent’s compensation directly. Fortunately, sellers can still offer concessions—up to 3% on conventional loans or 6% on FHA and USDA loans—to help cover closing costs or agent fees. Typical closing costs range from 3.5% to 4%, including fixed expenses like an $800 appraisal. So, working closely with your lender ensures you know exact cash-to-close requirements before making an offer. Previous month’s update.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started!
FAQ
In August, the average home price in Spokane reached $491,000. Prices remained virtually flat month-over-month and showed a modest 1% increase compared to last year, reflecting strong stability across the local real estate market.
Because bond markets already priced in an expected 0.50% Fed rate cut, an official cut of that size won’t dramatically lower mortgage rates. However, if the Fed cuts rates by less than expected, mortgage rates could actually rise.
Washington state now requires buyers to sign a written representation agreement specifying their agent’s compensation. Buyers can negotiate this fee directly with their agent, and sellers can still offer concessions or credits to help cover those costs.
Buyer closing costs in Spokane usually range between 3.5% and 4% of the purchase price. Fixed costs like an $800 appraisal make up a larger percentage on smaller loans, while larger loan amounts see lower overall percentage costs.
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