Go Spokane Real Estate
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Home Buyer Education
Zero Out of Pocket Financing
I teach a Washington State Housing Finance Commission sponsored Home Buyer Education class. I co-teach this 5 hour class with a lending professional. This is a free class. Not only is there a lot of great information for the perspective home buyer, but class completion is required for eligibility to receive a 0% interest state bond loan to cover down payment on your home mortgage.
Call for next class date: 509-844-7354
Spokane Real Estate Market Activity
Seasonal Drop Still Shows Overall Market Improvement
Sale prices and closed sales were both down last month when compared to the month before, but that is not bad news for the Spokane real estate market. It is important to look at market trends and not just one month to the next.
The numbers we get in October are for the closed sales in September and are actually homes that were sold in August. April, May, June and July are seasonally very active months for sales. When looking at the graphs below, this is reflected in closed sales reported in May, June, July and August.
If you want to compare market activity of one month to another, compare it to the same month of previous year or previous years. The graphs below show real estate market activity for the last 3 years in Spokane.
When looking above at the number of closed sales, there is an overall trend of increased sales compared to the same month one 1 and 2 years before. When looking below at the active listings, seasonal trends have remained very consistent over the last two and a half years. Active listings represent the supply and closed sales represent the demand. We all know the effect of supply and demand on prices.
The average price indicates the mean average sale price and, of course, the median price is calculated using the median sale price on homes sold. For more information on what this means, read the article in the column to the right. When you look at the market trends, the two graphs are quite similar. Prices tend to go up with market activity and down as activity goes down. This holds true for seasonal changes as well as well as year to year trends.
When you study these graphs, you will see some anomalies that are not easily explained here but when an anomaly is shown to be a trend, it can become a valuable tool. An example of this is how closed sales tend to drop in September and increase in October but the prices still tend to be down. The homes that are still on the market in August may have been priced high to begin with. A home that has been on the market for a long time never looks as appealing as when it is fresh. The frustrated sellers become more motivated and reduce the price as well as consider lower offers.
As a seller, it is important to understand that a home priced correctly when it is first put on the market will bring a higher price in a shorter amount of time than one that is overpriced. As a buyer you may find that there is no bad time to buy a home. There will always be overpriced homes and there will always be good deals. Seasonally, when there are fewer homes on the market, there are fewer buyers competing for the same homes.
Nationally the real estate market is in recovery. Market trends are similar to what you see in Spokane. The Spokane real estate market does not fluctuate as dramatically as it does in other parts of the country. Our market also tends to respond a little slower.
When you look at activity and price of the real estate market for the rest of the country and compare it to the Spokane market, you will see some differences. In Spokane, our low was not as low as it was in other areas, so we also do not have as much ground to make up. We are also a couple of years behind in recovery when compared to some of the more volatile markets. Remember in 2006, are prices were still going up and some markets had already see significant prices drop.
The market is recovering, home mortgage interest rates are still historically low and home ownership is still one of the best investments you can make.