Spokane home prices remained steady in August 2023, with the average sale price reaching $489,000 across our local area. While this average sits slightly below last year’s figures, strong long-term appreciation continues to protect local homeowners. In fact, home values across Spokane have doubled over the last decade, giving many families substantial equity.
Pricing and Inventory Trends
The average home sale price in Spokane reached $489,000 in August 2023, holding prices relatively stable despite higher borrowing costs. On top of that, national home prices averaged $416,000, up from roughly $360,000 just a few years ago. In standard economic cycles, real estate values double once every 18 years at a 4% annual return. But here in Spokane, local values doubled in just 10 years. Because of that rapid growth, 40% to 50% of local homeowners now hold at least 60% equity in their properties. So when you move up to a larger home, your equity helps offset higher loan amounts. For instance, a 5% annual gain on a $500,000 home yields $25,000, while a $300,000 home yields $15,000. So upgrading your home builds your overall net worth much faster over time.
Mortgage Rate and Economic Context
Spokane mortgage rates hovered near 25-year highs in August 2023 as stubborn inflation and rising oil prices drove bond yields up. Local gas prices topped $4.80 per gallon for unleaded and $5.50 for diesel, directly feeding into stubborn Consumer Price Index data. Because inflation remains elevated, the Federal Reserve continues to keep monetary policy tight. However, higher interest rates do not have to stop your plans. On a $290,000 mortgage, the difference between a 6% rate and a 7% rate is under $200 per month. In fact, Mike once worked with a client who quit smoking just to afford his monthly mortgage payment. That decision improved both his health and his long-term wealth.
Advice for Home Sellers
Spokane sellers can maximize results in August 2023 by using their built-up equity to fund their next home move. Nearly half of local homeowners currently hold at least 60% equity in their properties. Because overall inventory stays tight across Spokane, well-priced homes continue to see steady buyer demand. So if you need to downsize or trade up, your equity gives you a strong financial cushion. Plus, listing today allows you to secure your target price before market dynamics shift. To find out how much equity you hold, check out our Instant Spokane Home Valuation Tool.
Advice for Home Buyers
Spokane buyers can handle current borrowing costs by using their built-up home equity or adjusting monthly lifestyle spending. Most move decisions happen because of life events, such as a growing family or a job change. If you hold significant equity, applying a larger down payment directly lowers your monthly obligation. As a result, the impact of a 7% interest rate becomes far smaller than most buyers expect. You can also compare current figures to our August 2023 Spokane Market Update. Waiting for rates to drop often means missing out on valuable long-term equity growth.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started! If you have mortgage questions or want to explore an equity analysis, call Mike Hogan at Chimney Rock Mortgage at 509-747-1300.
FAQ
The average home sale price in Spokane reached $489,000 in August 2023. While this figure sits slightly below last year’s record levels, local home values remain remarkably stable. In fact, home values across the Spokane region have doubled over the past decade due to strong demand.
Approximately 40% to 50% of Spokane homeowners currently hold at least 60% equity in their homes. Because local property values doubled over the last 10 years, many owners have substantial equity available to fund their next home purchase, downsize, or invest in real estate.
On a $290,000 mortgage, the difference between a 6% and a 7% interest rate is less than $200 per month. While lower interest rates save money, applying built-up home equity toward a down payment often offsets interest costs much more effectively than waiting for rate drops.
Yes, if your move is driven by life needs like a growing family. Higher-priced homes generate greater dollar appreciation over time. For example, a 5% annual gain on a $500,000 home yields $25,000 in equity growth, compared to $15,000 on a $300,000 home.
