Spokane Real Estate Market
With closed sales up 8.3% from the same time last year, this is shaping up to being the buzziest selling season that we have seen in a decade. The inventory is below three months which makes for multiple offers and higher prices. The average home price in Spokane at over $218,000 is within just a few thousand dollars of the peak. The median price home of $200,000 is the peak. May was the first month ever for the median price home in Spokane to break the $200,000 barrier.
Ok, with all this talk about such an active housing market and record setting prices, it is hard not to make comparisons with the housing market bubble that we saw a decade ago. If I am going to make those comparisons, I thought it might be important to understand just what happened with the bubble and what made it burst. I have written an article about this said bubble and you can find it in "The News Room".
The more you understand what happened 10 years ago, the more it makes you wonder if we are going to see the same thing happen again. The peak of the housing bubble saw the median price home at $196,000 and we just saw $200,000 in May. That is a 3% increase and the minimum wage has increased 20% in that same time period. When you consider this with the fact that mortgage interest rates are still holding low, a home is way more affordable than it was in 2007.
The Spokane housing market has changed though. It will never be the same as it was before the turn of this century. We have gone from a "B" housing market to a "2A" housing market. Just to keep things in perspective, Seattle has a "4A" housing market. Spokane will no longer see the slow steady market that we have seen in the past. In the future, we will experience many of the same hills and valleys as other parts of the country. We still won’t experience the extremes that he more active markets do but real estate in Spokane will never be the same.
written by:Todd Hays