Welcome to the May Spokane Real Estate & Mortgage Update! Coming to you straight from The Burrito House! (Highly recommend the Pork Chili Verde and the giant “lo-carb” chicken burrito).
If you’ve been following the Spokane real estate market this year, you know it’s been a wild ride. But while on the surface it looks like prices are just going up and up, there is a silent catalyst shifting the market right beneath our feet.
Are we entering a buyer’s market? Here is the complete breakdown for May.
The Price Paradox: Up, Up, and Away?
Let’s look at the raw numbers. The median sale price in Spokane for May hit $435,000. While that’s 1% less than the $440,000 median we saw last year, it’s a massive jump from where we started this year.
Just six months ago, we kicked off the year with a median sale price of under $400,000. Fast forward to today, and prices have shot up over $35,000. But before sellers get too comfortable, you need to look at what’s happening behind the scenes.
The “Silent Catalyst”: Inventory is Accumulating
Everyone loves to obsess over interest rates and home prices, but inventory is the real catalyst that is going to swing this market. Here is the data you need to pay attention to:
- Closed Sales: Down 18% year-over-year.
- Pending Sales (Leading Indicator): Up 16% year-over-year.
- Active Inventory: Up almost 15% year-over-year.
- Absorption Rate: Down 28% year-over-year.
What does this mean in plain English? Homes that are coming onto the market are sitting without offers. Only about 1 in 5 homes are being absorbed during this reporting period, meaning inventory is just accumulating.
While the $250k–$350k “first-time homebuyer” range is still moving fast, the $400,000+ market is starting to stall.
Sellers: You Can No Longer “Experiment”
If you are a seller, the days of throwing a massive number at the wall to see what sticks are over. You are facing more competition than you have in years. You have to be dialed in on price and condition. If you overprice your home by $50,000, it will sit on the market, and it will end up taking you longer to sell than if you had just priced it accurately from day one. Listen to your realtor!
Buyers: You Finally Have Power!
If you are looking to buy, congratulations! You finally have an opportunity to let time do some of the heavy lifting. Buyers are entering the market aggressively and are actually able to negotiate again. We are seeing buyers wait out sellers and successfully negotiate price drops of $2,500 to $5,000. If you like a house and your initial offer isn’t accepted, there’s a good chance that if you wait a few weeks, that seller might just come back to you.
The Mortgage Rate Mystery: Watch the Oil!
Wondering when interest rates will drop? Keep your eyes on oil prices. Interest rates tend to follow oil. Right now, oil is sitting above $90 a barrel. However, if geopolitical tensions ease and oil drops back down to $70 a barrel, we could see mortgage rates drop very quickly.
If you are waiting on the Fed to reduce rates… don’t hold your breath. There is a 94% chance they are going to keep rates exactly the same right now. Start the process now so you are ready to strike if those rates dip!
Sneak Peek for Next Month 👀
We have a massive House Buying Hack coming your way in July. It’s an incredible strategy that makes buying a home much more affordable in the exact neighborhoods you want to live in. You won’t want to miss it!
Need to make a move in the Spokane market?
- To Buy/Sell/Invest in Real Estate: Call 509-990-SOLD
- For Mortgage & Lending: Call 509-747-1300
See you next month!
BURRITO HOUSE
Located in East Central Spokane, Burrito House is a family-run, independently woman-owned restaurant offering quality burritos, tacos, and enchiladas! Make sure to keep your eyes peeled when you go, as they’re in a little nook by Chief Garry Park (we almost missed them on our way in!)
We stopped in for their Chile Verde Burrito and their Lo-Carb grilled chicken burrito – both were delicious and HUGE! Of course, we had to try their horchata, which was quite similar to Salvadoran horchata and is a must-try, and ended the meal with a plate of churros! (You can never go wrong with churros, especially when it’s grandpa’s recipe.)
The restaurant had these adorable sombrero light fixtures, a funny mural of their mascot, outdoor seating, and great music. All around, we had a great time, and you’ll find us visiting BH in the near future.
🍿 WATCH NEXT:
HOW TO BUY A HOUSE IN THE NEXT 12 MONTHS: • How to Buy a House within the Next YEAR!
HOW TO CHOOSE A MORTGAGE LENDER: • How to Choose a Mortgage Lender
APRIL 2026 SPOKANE MARKET UPDATE: • April 2026 Spokane Market Update
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