Spokane Real Estate Market
June 2015 Market Activity
More homes were sold in May in Spokane Washington than in any other month in the previous five years. You may not believe that when you look at the graph below because June dwarfs May. Remember, May was a record month. June was 18% higher. We had an AWESOME June!
June also saw a huge increase in both, median and average sale price. The median sale price was almost 5% higher than May and average sale price was over 6% higher. When you compare last month to the same month in previous years, you find that we just had the best June in 7 years.
All this market activity, simply stated means that buyers are buying and sellers are selling. This is just something that hasn't been happening in recent years. With prices on the rise, sellers can afford to sell their homes. When they owe more on their home than the market will bear, the only people who sell their homes are the ones that are forced to.
When buyers see a steady increase in home prices, it gives them confidence that home ownership is still a good investment. The mortgage interest rates are still holding low and this helps to lower house payments. With the low interest rates we see today, you can often buy for less than you can rent. This is partially due to the fact that loans for owner occupied property will have lower interest rates and better loan terms than loans for rentals and investment property.
Does all this price increase and market activity mean we are going to have another bubble? No. We are still in a recovering market. The prices are still not as high as they were eight years ago right before the bubble burst. Market activity is high but a lot of that is just making up for the slow market we have been experiencing the last few years.
written by:Todd Hays