Spokane active housing inventory fell more than 20% during the first quarter of 2023, keeping local home values remarkably steady despite higher interest rates. Meanwhile, only 22% of homes sold above their original list price as overall market activity cooled from previous highs. As we head into spring, well-positioned properties are attracting renewed buyer interest and multiple offers across our region.
Pricing and Inventory Trends
Spokane home inventory dropped over 20% in Q1 2023 compared to last year, while surrounding regional markets saw supply fall by 30% or more. Because overall inventory remains severely constrained, local home prices stayed steady instead of crashing. However, homes are no longer selling as fast or as high above list price as they did 12 to 18 months ago. In fact, only 22% of local homes sold above asking price in early 2023, leaving 78% selling at or below list price. As we exit winter, buyers are stepping up for turnkey homes. Properties priced slightly below comparable sales and presented in top condition are regularly attracting multiple offers again.
Mortgage Rate and Economic Context
Spokane mortgage rates settled into a steady channel between 6% and 7% as the Federal Reserve continued tightening monetary policy. The Fed indicated additional 25 basis point rate increases for March and May 2023 to combat ongoing inflation. Economic signals remain mixed as markets figure out whether bad news is good news or bad news is bad news. Even so, local home buyers have adjusted to current borrowing costs rather than sitting on the sidelines. Plus, real estate analysts anticipate modest home price appreciation of 2% to 3% during the second quarter of 2023. You can compare these figures with our March 2023 Spokane Real Estate Market Update.
Advice for Home Sellers
Spokane home sellers must price strategically and outshine competing listings because 78% of homes are selling at or below asking price. If you want to trigger multiple offers in today’s market, list your property slightly below recent comparable sales and ensure the condition is exceptional. Today’s buyers are far more selective because borrowing costs are higher than last year. So positioning your home as a standout value on day one is the best way to generate fast buyer competition. To see what your property is worth in today’s shifting market, check out our Instant Spokane Home Valuation Tool.
Advice for Home Buyers
Spokane buyers should focus on locking in today’s property price now rather than waiting for an unlikely double drop in rates and prices. Waiting for both interest rates and home prices to plunge simultaneously rarely works out because low inventory protects property values. Instead, successful buyers control the variable they can: securing the purchase price today. You can take advantage of temporary rate buy-downs or seller concessions now, then refinance your mortgage when borrowing costs ease over the next one to three years. Real estate remains a resilient long-term asset through every economic cycle.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started!
FAQ
Spokane home inventory dropped by over 20% in early 2023, with some surrounding local areas experiencing decreases of 30% or more. Because overall housing supply remains constrained, local home prices have stayed remarkably steady despite higher interest rates and lower overall sales volume compared to last year.
Only 22% of Spokane homes sold over asking price in early 2023, while the remaining 78% sold at or below list price. However, homes priced slightly below neighborhood comps and kept in exceptional condition continue to attract multiple competitive offers from active buyers.
Spokane mortgage interest rates settled into the 6% to 7% range in early 2023 as the Federal Reserve continued tightening monetary policy. While the Fed forecasted 25 basis point rate hikes in March and May, local home prices stabilized with modest 2% to 3% appreciation expected in Q2.
Waiting for both interest rates and home prices to fall at the same time is unlikely to work out. Because tight inventory holds home prices firm, buying now lets you lock in your purchase price today while giving you options to refinance your mortgage when rates ease later.
