Spokane home prices appreciated by nearly 4% in April 2023 as new pending contracts surged 24%, signaling a strong return of spring buyer demand. While closed sales reflected slower late-winter contract activity from two months prior, new listings rose 7% to give local shoppers much-needed inventory relief. Here is our full breakdown of where the local real estate and mortgage markets stand heading into May.
Pricing and Inventory Trends
Spokane home prices appreciated by nearly 4% in April 2023, while new pending contracts jumped 24% month-over-month. New listings increased by 7%, which offered welcome relief after an inventory drought. Closed sales dropped 14% to 15% in April, but that was expected. Closed sales are a lagging indicator reflecting contracts written during our 7-month long winter. Now that spring is finally here, pending contracts surging by 24% shows that buyers are stepping back into the market. On top of that, inventory is creeping up to keep home prices stable. You can compare these figures with our April 2023 Spokane Real Estate Market Update.
Mortgage Rate and Economic Context
Spokane mortgage interest rates ticked up slightly in April 2023, but 42% to 45% of home sales included seller concessions to lower buyer costs. Rich sat down with Matt Norris from Catalyst Lending Team (a branch of Illuminate Homes), who has been helping buyers navigate mortgage options since 2013. Because interest rates rose slightly, buyers and sellers are finding win-win solutions using seller-paid rate buy-downs or closing cost help. Meanwhile, news headlines sparked debates over loan level price adjustments (LLPAs). Many news outlets claimed high-credit buyers were subsidizing lower-credit buyers. But LLPAs have always existed in mortgage lending. In fact, borrowers with lower credit scores (like a 650 credit score with 3% down) still pay higher risk-adjusted fees than buyers with top-tier credit.
Advice for Home Sellers
Spokane home sellers should expect a balanced spring market where offering seller concessions helps secure serious buyers quickly. Buyer demand is surging with pendings up 24%, but shoppers remain sensitive to monthly payments. Offering rate buy-down credits or closing cost assistance works extremely well in this market. In fact, roughly 42% to 45% of recent local sales included some form of seller concession. This balanced approach protects your overall sales price while making the home affordable for the buyer. To find out what your property is worth as spring activity picks up, check out our Instant Spokane Home Valuation Tool.
Advice for Home Buyers
Spokane home buyers can improve mortgage affordability in May 2023 by asking for seller-paid interest rate buy-downs during contract negotiations. While interest rates ticked up recently, nearly half of all local transactions include seller credits that reduce your upfront or monthly costs. So instead of sitting on the sidelines, work with an experienced lender like Matt Norris to explore creative financing strategies. Plus, with new listings up 7% in April, you have more options to choose from than you did earlier this year.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started!
FAQ
Yes, Spokane home prices appreciated by just under 4% in April 2023. While closed sales dropped 14% to 15% due to slower late-winter contract activity, new pending contracts surged 24%, showing a strong spring rebound in local buyer demand as more inventory hit the market.
Loan Level Price Adjustments are risk-based fee adjustments set by mortgage backers like Fannie Mae. While recent headlines suggest high-credit buyers subsidize lower-credit buyers, LLPAs have existed for years. Borrowers with lower credit scores or smaller down payments still pay higher risk-adjusted fees overall.
Yes, roughly 42% to 45% of recent home sales in Spokane included seller concessions. Sellers frequently offer credits to help buyers buy down their mortgage interest rates or cover closing costs, creating a balanced win-win transaction despite higher prevailing interest rates.
Yes, new housing listings in Spokane increased by 7% in April 2023. This uptick in supply provided much-needed relief for local buyers following a long winter, helping support a 24% increase in new pending sales across the region.
