Welcome to Go Spokane Real Estate where you will find up to date information on Spokane real estate. Here you will find valuable resources whether you are looking to buy or sell a home in the Spokane area.
If you are looking at homes for sale in Spokane or the surrounding area, you can search the Spokane MLS. You can use your own custom search criteria or the home search map feature. I teach a home buyer education class in Spokane where you can learn more about the home buying process including home mortgage and many different home loan programs available.
If you own a Spokane home that you are considering selling, you will find information to help decide if now the right time to sell. Here you will see the latest statistics regarding the Spokane real estate market. There is also information that will help you price your home correctly and understand the importance of a good marketing plan.
Spokane Real Estate Market
The numbers are in for February and the Spokane real estate market is rolling hard and gaining momentum in 2017. With interest rates still holding low, it is still a great time to buy but inventory is low. There are good deals out there but you are shopping on the sale rack and selection is limited.
There are 35% fewer homes for sale in Spokane then there were at this time last year. Right now there is 91 days' worth of inventory. This is a theoretical number that means if homes continued to sell at the current rate without any new listings coming on the market, in 91 days there would be no homes available.
There were 335 single family homes on less than one acre sold in the Spokane area this February. When you look at the chart below you will notice that there were actually seven more homes sold for the same month last year but when you take into account the fact that last year was a leap year you will see that per day there were more homes sold this year. This is also consistent with the year to date sales that are up by 3% from last year.
If you have been on the fence about putting your home on the market, these are the signs that you have been looking for. April and May are the best months to put your home on the market in the Spokane area. When you look at the charts below you will notice that the highest prices are typically in July. Because these charts are for closed sales, the represent homes that went under contract in May or June.
This gives you some time to prepare your home before you put it on the market. This way it will be seen in its best light when it is time to put it on the market.
The average sale price this February was $205,077. This is up 2.7% from last year when the average price was $199,636. The year to date average is 5.8% higher than last year at this time.
The median home sale price in Spokane for the month of February was $185,000 compared to $183,000 a year ago. This is up a little over 1%.
Even though both the average and median sale price in February are up when compared to the same time last year, they are actually down when you compare them to January. The lower sale prices can be explained by the extremely low inventory. When inventory is this low, houses that are in good condition and are priced correctly, sell very quickly. This leaves the houses that are overpriced or are in very poor condition. Extremely overpriced homes typically don't get offers and homes that don't show well get low offers.
There were 41 new homes sold in February which brings the year to date total to 89. Last year new home sales were at 108 by this time. This represents a 17.6% decrease in new home sales.
Short sales and bank foreclosures are referred to as distressed home sales. Distressed home sales accounted for 11.6% of all home sales in February this year where they accounted for 15.8% the same time a year ago. Distressed home sales are not an indicator of a strong market so a lower number is much better.
written by:Todd Hays
The Housing Bubble
When discussing the Spokane real estate market it is likely that reference will be made to the "Bubble" that accrued about a decade ago. With the dramatic increase in market activity that we have been experiencing lately, comparisons are being made to this bubble. In order to draw any value from these comparisons, it is important to understand this housing market bubble.
For many years the housing market in Spokane was steady with home values increasing at a consistent predictable rate. Unlike the more active housing markets around the country, Spokane had never experienced a housing market bubble. Beginning back in 2005, that was all about to change.
While many of the more active markets around the country were already seeing a decline in market activity and home prices starting to come down, in 2005 Spokane was just getting started. The market activity was starting to increase and the home prices were increasing at a faster rate than their status quo that had been so predictable in the past.
The summer of 2006 brought more sales and less inventory. Coming into June there was only 2.63 months' worth of inventory which is the lowest supply that has ever been recorded in this market. The highest number of closed home sales Spokane has ever seen was August of 2006 and the second highest was June, of that same summer. There had never been a more active housing market in Spokane and there hasn't been one since.
Was this the bubble? Nope, as you would expect to see with this kind of increase in demand and such a short supply, prices continued to increase through the summer and on into the fall. The seasonal market slowed down in the cooler months as you might expect. Many homeowners who saw this as an opportunity to get top dollar for their homes were getting their houses ready to put on the market.
Coming out the gate, the spring of 2007 had a lot more homes on the market then '06. There were a lot of homes on the market and in keeping with the market stir; they were priced at a premium. Summer of 2007 did not see quite the market activity in terms of homes sold, as '06 but they were selling for a lot more money.
The housing prices in Spokane peaked out in July of 2007 with the average sale price at over $221,000 and the median priced home at $196,000. To understand what was happening at the time, it is important to keep in mind that these homes that closed for top dollar in July were actually sold in June or even as early as May. At this time the inventory was already starting to build. As more and more Johnny list latelys were jumping on the wagon, inventory continued to swell. Ultimately, many of these homes were not going to sell.
The fall of 2007 saw almost twice the inventory as the previous year. To make matters worse, they were overpriced. There has to come a time when you just completely out price your buyers and that time had come. This is why September of 2007 marks the actual burst of the bubble.
In conclusion, the bubble started in summer of 2005. Summer 2006 saw the greatest market activity in Spokane ever before or since. 2007 saw the highest prices. Many sellers would reap the top of the market prices but with the increasing inventory, many more wouldn't sell their homes at all.