Spokane’s real estate market saw new pending sales rise nearly 5% year-over-year at the end of September 2026, even as mortgage rates climbed past 7.5%. Prices remained virtually flat, inching up less than 1% compared to last year. People are still making moves across the Inland Northwest because major life events continue to drive local real estate.
| Spokane, September 2026 | Number | Change |
|---|---|---|
| Median sale price | — | +0.8% vs. last year |
| New pending sales | — | +5% vs. last year |
| Mortgage rates | ~7.5%+ | Up to highest level since 2023 |
Spokane Home Prices and Inventory Data
Spokane home prices remained remarkably steady at the end of September 2026, showing less than a 1% increase year-over-year. Meanwhile, buyer demand stayed resilient, with new pending sales increasing by almost 5% compared to the same period last year.
Because real estate moves like a slow-moving freight train, prices are holding firm even in a high-rate environment. Buyers are out in the market making moves when life requires it, whether due to marriage, divorce, job changes, or retirement. To get an accurate picture of value right now, look closely at pending and expired listings rather than sold data from six months ago, when rates were sitting closer to 6%. If you want to see where your property fits, check our Home Valuation page.
Rate Context and Economic Pressures
Mortgage rates ended September 2026 above 7.5%, hitting their highest levels since late 2023. You would have to look back to the early 2000s to find a prolonged stretch of borrowing costs at these levels.
A combination of factors is keeping upward pressure on rates. The 10-year Treasury yield recently crossed 5.3%, crude oil remained elevated over $100 a barrel, and massive borrowing from both the U.S. government—running a $2 trillion annual deficit—and major tech companies expanding AI infrastructure is driving up capital costs worldwide. Elevated borrowing costs may remain the new normal for the next 6 to 12 months, making creative financing tools far more important than simple price chops.
Strategic Advice for Sellers
Sellers in Spokane can net more money by offering rate buydown concessions rather than making traditional list price reductions. A seller contribution that buys down a buyer’s interest rate makes a house significantly more affordable on a monthly basis while protecting the overall sale price.
For example, on a $450,000 purchase, a $20,000 to $30,000 builder or seller concession can lower a buyer’s monthly payment to match what a $350,000 home would cost at standard 6.5% or 7.5% rates. That makes your home stand out immediately to active buyers who care far more about their monthly outlay than the top-line sticker price.
Creative Financing Advice for Buyers
Buyers can secure effective starting interest rates as low as 4.625% or 4.99% using temporary buydowns, adjustable-rate mortgages (ARMs), or builder incentives. You do not have to accept the standard 7.5% benchmark rate as your only option.
A 3-2-1 temporary buydown lowers your interest rate by 3% in year one, 2% in year two, and 1% in year three, saving nearly $800 a month in that first year. The seller-funded buydown money sits in an escrow account, so if interest rates drop and you refinance early, the leftover funds go directly toward reducing your loan principal balance. Additionally, today’s 7-year or 10-year ARMs operate under strict Dodd-Frank underwriting guidelines, offering significantly lower fixed rates during your initial years without the risks of the mid-2000s. Compare this strategy with last month’s trends in our previous month’s Spokane market update.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) for real estate or 509-747-1300 for mortgage options to get started!
More monthly updates: Previous month’s Spokane market update ← August 2026 Spokane market update
Frequently Asked Questions
Spokane home prices remained flat with less than a 1% year-over-year increase, while new pending sales rose nearly 5%. Buyers are actively purchasing homes due to life transitions, even as interest rates hover above 7.5%.
Mortgage rates ended September 2026 above 7.5%, marking their highest point since 2023. Rates are elevated due to high Treasury yields, persistent oil prices above $100 a barrel, and massive global government borrowing.
A 3-2-1 buydown temporarily lowers your mortgage rate by 3% the first year, 2% the second year, and 1% the third year. Typically funded by seller concessions, it provides lower initial monthly payments and allows refinancing if rates drop later.
Yes, modern ARMs are governed by strict post-Dodd-Frank lending standards. A 10-year ARM offers a fixed, lower interest rate for the first decade, making it a viable option if you expect rates to settle lower over time.
Local Spotlight: Indigenous Eats
This month we recorded from Indigenous Eats, located on the corner of Hamilton and Boone near the Gonzaga campus. Indigenous Eats brings the rich traditions of Native American cuisine to Spokane, pairing traditional flavors with modern twists to create unique comfort food. We tried the Rancher and the Farmer served on fresh frybread—both were absolute wins. If you want authentic Native American comfort food in a welcoming spot, make sure to visit them next time you are near Gonzaga!
Keep Reading
- How to buy a home within the next year: a 12-month plan
- How to choose a mortgage lender in Washington
- Why 7% Mortgage Rates AREN’T Crashing the Spokane Housing Market (And How to Beat Them!) | September 2026 Update
- All our buyer and seller guides
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The Spokane Home Guy Group is a top-producing real estate team at Keller Williams Realty Spokane, serving buyers, sellers, and investors across Spokane, Eastern Washington, and Coeur d’Alene / North Idaho.