Spokane Real Estate Market
Is the Spokane area housing market slowing down? Maybe, just a little bit.
So far this year, the Spokane housing market has been a seller's market. We have seen historically low inventory with continued high sales volume which causes buyers to compete over limited available homes on the market and drive up prices.
In April there were 525 single family site built homes on less than one acre sold in the Spokane area compared to 555 the month before. This is a 5% decrease. 585 homes were sold in April of last year which puts this April 10% lower than last year.
In addition to decreased sales volume, there has also been an increase in inventory. Active listings increased from 1268 in March to 1457 in April. That is a 15% increase. Even with this increase, inventory is still sitting 25% lower than last year.
Our month to month increase in supply and decrease in demand has by no means presented itself as being a trend but more of a reprieve for buyers in this strong seller's market that we have been experiencing. Year to date statistics still indicate that we are in a seller's market with high demand and low inventory which results in higher prices.
The average sale price month to month saw an increase of about 1 ½% with April coming in at $224,351 when March was $220,984. Historically this is in line with the seasonal changes of the Spokane real estate market that we expect.
If we are going to see a price drop in as a result of the decrease in demand and the increase in supply, it will not be immediate. First of all, prices are affected by the laws of supply and demand not the other way around; therefore we would expect to see the result happen a short time afterwards.
Secondly, where I can give immediate statistics on active listings, statistics involving closed sales need to be accumulated throughout the month and they represent contracts that were signed around 30 to 60 days before.
Here we saw the average sale price go up from one month to the next, the median price went down. The median sale price for a single family site built home on less than one acre in the Spokane area was $201,900 compared to $204,900 the month before. This is about a 1 ½% decrease from the month before.
We saw the average sale price increase 1 1/2% one month to the next and the median sale price decrease in 1 1/2% over the same time. What does this mean? Actually, very little. When you see a small change from one month to the next that hasn't even established itself as a trend, it isn't anything to get real excited about.
On the street we still see well priced homes sell quickly and often times with multiple offers. Higher end homes still take a little more time to sell than more moderately priced homes. The Condo market is more active than it was a year ago. Condition is still important and overpriced homes don't sell.
written by:Todd Hays