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 Spokane real estate market experienced another strong month. There were 781 closed sales of single family homes on less than one acre including condominiums for the month of September.
Year to date sales through September are up 7.1% compared to the previous year. There were 5,619 closed sale through September this year compared to 5,247 last year.
The average sales price for the month was $215,557, up 7.7% compared to September in 2015 which had an average sales price of $200,231.
The year to date average sales price is $212,661 for 2016 compared to $196,924 over the same period last year. This is an increase of 8%.
The median sales price was up 9.8% compared to September last year, $201,000 vs. $183,000 respectively.
The year to date median price shows a similar increase of 8.4%. The median price through September this year is $195,000 compared to $179,900 over the same period last year.
Inventory continues to be tight. As of this report there were 1,898 single family homes on less than one acre including condominiums on the market. This number is down 17.2% from last year when 2,293 properties were listed.
New construction sales are up 20% over last year, through September. 626 reported year to date new construction sales compared to 522 the same time period last year.
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.