Spokane average home sale prices fell 6% to 7% year-over-year in October 2023, while median prices stayed nearly flat across local neighborhoods. Meanwhile, active housing inventory continued its year-long decline, keeping local supply tight. So if you are wondering whether waiting for interest rates to fall makes financial sense, the underlying market data shows a very clear picture.
Pricing and Inventory Trends
Spokane median home prices held steady year-over-year in October 2023, while average sale prices dropped 6% to 7% compared to October 2022. Between September and October, both median and average prices saw slight month-over-month declines. At the same time, properties spent more days on the market as higher interest rates slowed buyer velocity. However, available housing inventory has trended downward almost all year. Because new listings remain so limited, overall housing supply stays extremely tight. In fact, our team looked back at 40 years of real estate data, and the long-term trend line moves steadily upward through every war, election, and recession. As Rich likes to say, real estate has no feelings and the house has no heart—prices simply follow supply and demand over time. You can compare these metrics with our October 2023 Spokane Market Update.
Mortgage Rate and Economic Context
Spokane mortgage rates spiked nearly a full percentage point during October 2023 before wiping out all those losses during the first two weeks of November. Borrowing costs returned to mid-September levels and began trending in a better direction. Today, mortgage payments account for roughly 29% of gross income for average buyers, compared to 26% or 27% during the 1970s and 1980s when interest rates reached nearly 18%. Because incomes are much higher today, buyers retain more discretionary income now than homeowners did decades ago. If mortgage rates continue to ease, more buyers will enter the market. That surge in buyer demand will put immediate upward pressure on home prices. That is why waiting for lower interest rates often backfires. To protect our clients, we offer a rate lock strategy where we lock your rate today, float it down for free if rates improve before closing, and leave the door open to refinance later. (By the way, if you followed our NFC West football predictions—Rich called 12-5 for the 49ers and Mike called 11-6 for the Seahawks—you know our real estate forecasts are just as spot on!)
Advice for Home Sellers
Spokane home sellers hold a distinct advantage late in the year because declining housing inventory keeps property values stable despite longer days on market. While properties are taking longer to sell than they did last year, supply remains far too low to trigger price crashes. Sellers should focus on accurate pricing and strong presentation rather than worrying about broader economic headlines. If interest rates drop heading into next year, buyer activity will spike quickly, creating even stronger demand for listed properties. To find out what your home is worth right now, check out our Instant Spokane Home Valuation Tool.
Advice for Home Buyers
Spokane buyers can avoid rising home prices by purchasing based on current personal life needs rather than trying to time unpredictable interest rate movements. Waiting for interest rates to fall usually costs buyers more money because lower rates bring sidelined buyers back into the market, driving home prices higher. Whether you are moving from a rental to your first home or trading up to a larger layout, real estate remains a needs-based choice. You do not need perfect credit or a massive down payment to buy a home today, as down payment assistance programs can bridge the gap. Sitting down 1-on-1 with a trusted real estate and mortgage advisor helps you build a plan tailored to your budget.
Looking to buy or sell? Visit spokanehomeguy.com or call 509-990-SOLD (7653) to get started!
FAQ
Waiting for mortgage rates to drop usually costs Spokane buyers more money overall. When interest rates fall, sidelined buyers re-enter the market simultaneously. That surge in demand drives home prices up, erasing any potential interest savings. Buying now allows you to secure today’s price and refinance when rates ease later.
Spokane median home prices showed virtually zero change year-over-year in October 2023, while average sale prices fell 6% to 7% compared to October 2022. Month-over-month prices experienced slight declines from September, while days on market increased due to higher interest rates slowing overall sales velocity.
Mortgage payments currently average roughly 29% of a buyer’s gross income in Spokane. While higher than recent years, this is comparable to the 1970s and 1980s when payments averaged 26% to 27% of gross income despite interest rates approaching 18%. Higher modern incomes leave buyers with more discretionary cash.
Available housing inventory in Spokane has trended downward throughout 2023. When interest rates drop, buyer demand increases faster than new listings enter the market. This inventory shortage creates upward pressure on home prices, making it harder for buyers to find affordable homes once interest rates fall.
