Spokane Housing Market 2022: Prices, Trends & Forecast
The Spokane housing market was always known as being buyer-friendly pre-pandemic. The economic swings didn’t take long to reach the once-affordable area, resulting in sky-high prices. However, now the market is showing signs of cooling down. How much has it cooled down, and is it going to burst? Read on to find out everything you need about Spokane’s housing market prices, trends, and forecasts.
Spokane Housing Market Prices
The Spokane housing market was once touted as the most affordable. People flocked to Spokane in record numbers. After the pandemic hit, prices skyrocketed while the housing markets overheated nationwide. Now, the prices aren’t increasing at the drastic rate they once were.
According to Redfin, the median price for all housing types is $363,750. That’s only a 4% increase in price year over year.
Single-family homes were the most popular type of home on the housing market. The average price for this housing type is $372, 450, an increase of almost 7% compared to last year.
Condos and co-ops also saw a price increase. The median price for a house in this category is $289,000, an increase of almost 15% compared to last year.
Although this price is still more than last year, the market still shows signs of cooling off. In September, the median price for a house or condo was about $409,950. This is higher than the price in September 2021, which was $380,000. However, just one month before, the median price was $416,450. This slight but steady decrease has continued for months, according to this data.
Spokane Housing Market Trends
On average, all housing types are down in sales. In October, 306 homes were sold, almost a 30% decrease year over year. Homes are spending an average of 20 days on the market, an increase of 14 days compared to last year.
Single-family homes accounted for about 282 homes that were sold. However, this is almost a 30% decrease year over year. Homes are also spending a more extended period on the market before being sold. Single-family homes have been on the market for about 20 days, 14 more days than the previous year.
Condos and co-ops account for 20 of the houses sold on the Spokane housing market, a 20% decrease year over year. However, they are only spending seven days on the market before selling. That’s up two days compared to last year. While it is an increase, it’s not a significant enough increase to be concerned.
The Spokane housing market is still considered competitive. Almost every house is selling at the list price. About 33% of houses sold on the market were sold above the list price. However, this is a drastic decrease compared to how many houses were sold above the list price last year.
However, it does show signs of cooling off. Rising interest rates have left buyers wary of entering the market. In the past year, interest rates have risen almost 7% in the state of Washington. This leaves many people waiting to buy or choosing to rent to make sure that they don’t wind up in a bad financial situation.
Spokane Housing Market Forecast
Many people are considered about the slowdown of the Spokane housing market. Fewer buyers show up at open houses, and the houses slowly sit on the market longer. However, according to this article, the market is amid a normal cooldown. It’s not going to burst. At least not anytime soon.
Because of increasing interest rates, now is the wrong time for many investors nationwide. This is why many buyers shy away from the market, and it makes sense. However, there is an upside to this: buyers have more power to negotiate because sellers have a more challenging time selling houses. This trend is going to continue.
We see the market cooling down, and this will also continue. The prices will continue to decrease slowly, and the housing inventory will slowly increase. This is also normal. The housing market was previously overheated, and now it is correcting itself.
The same trends that we see now will continue until the housing market becomes a more balanced market. If you’re eager to sell your house fast, but don’t want to deal with the volatile Spokane market, give us a call. We buy houses in the Spokane area.
The upcoming recession that many are predicting will also have an impact on the housing market. Many buyers will want to see what happens in the economy before buying a house. This will result in more buyers staying away from the housing market, further encouraging the trends to continue.
As prices continue to cool off slowly, now is the time for investors and sellers to sell if they want to make a significant profit. The market is expected to stabilize, meaning it might be long before we see these high prices again. This is bad news for sellers that want to make the most money from their properties. The easiest way to get a more significant ROI is to find a cash buyer in Spokane.
Buyers are waiting to see what happens with interest rates, and that’s a great idea right now. In the future, buyers will have a more extensive selection, lower interest rates, and more purchase power than they do now. They’ll also be able to score a house at a cheaper price.
Long-term investments aren’t going to bring in the big bucks like they previously did in Spokane, but that doesn’t mean they will be a total loss. Instead, you’ll still enjoy moderate appreciation in the long run.
Short-term investors that are eager to flip houses are advised to wait. As house prices continue to decrease, there’s a solid chance you can lose money, even if you only own the property for a few months.