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March 9th, 2019 by Marco Santarelli
Hottest Spokane Real Estate Market Insight
If you’re keen to invest in your future in the Spokane real estate and buy before prices become out of reach, you must peruse till the end. Home prices in the Spokane real estate market are expected to rise at a steady pace throughout 2019. So you should consider making your investment sooner, to dodge higher home prices down the road. Spokane is the second largest city in Washington State. It is sited on the Spokane River in the foothills of the Rocky Mountains. The population of Spokane is around two hundred thousand.
However, the Spokane real estate market includes the broader metropolitan area that is home to nearly 600,000 people. This real estate market is warming up though it is overlooked for hotter markets like Seattle and San Francisco. Data from Zillow shows that the Spokane’s housing market is hotter than Seattle’s for first time in six years. Spokane homes are selling faster than Seattle homes. Let’s take a close look at the Spokane real estate market trends and forecasts for 2019 & 2020 and find out why to invest in this hot market in Washington.
Spokane Real Estate Market Forecast 2019, 2020 & 2021
Here are the latest forecasts for the housing market in Spokane, Washington. The median home value in Spokane is $205,600 on Zillow. Spokane home values have gone up 10.5% over the past year and their Spokane real estate market prediction is that they will rise 8.9% within the next year. The median list price per square foot in Spokane is $202, which is higher than the Spokane-Spokane Valley Metro average of $191. The median price of homes currently listed in Spokane is $235,500 while the median price of homes that sold is $200,900. The median rent price in Spokane is $1,250, which is lower than the Spokane-Spokane Valley Metro median of $1,295.
LittleBigHomes.com publishes forecasts for the trend in home prices in 380 Metropolitan Statistical Areas. The forecast for the trend in the Spokane housing market for the 12 months ending with the 3rd Quarter of 2019 is positive. The Accuracy of the Trend Projection for Spokane is 78%. Accordingly, they estimate that the probability for rising house prices in Spokane is 78% during this period. If this Spokane Housing Market Forecast 2019 is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Spokane Housing Market Forecast 2019 – 2021
The Spokane housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The Accuracy of the Trend Prediction for Spokane is 72%. Accordingly, LittleBigHomes estimates that the probability for rising house prices in Spokane is 72% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Spokane Real Estate Market Forecast.
Spokane Real Estate Market Trends
Here are the latest trends for the housing market in Spokane, Washington. Spokane real estate market trends indicate an increase of $7,900 (4%) in median home sales and a 0% rise in median rent per month over the past year. The average price per square foot for this same period rose to $173, up from $157. Trulia has 791 resale and new homes for sale in Spokane, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Spokane for Nov 7 to Feb 6 was $207,825 based on 960 home sales. Average price per square foot for Spokane was $173, an increase of 10% compared to the same period last year. The median rent per month for apartments in Spokane for Jan 12 to Feb 12 was $1,295.
According to Zillow’s study, spokane homes are selling faster than Seattle homes. Every month from 2012 to 2018, homes in the Seattle housing market always sold faster until October 2018, when Spokane tied Seattle. In November, Spokane surpassed Seattle with Spokane homes selling in 59 days, while Seattle homes sold in 63 days, according to Zillow data. This trend continued into December, with Seattle homes selling in 72 days and Spokane homes selling in 57 days.
In 2018, the Spokane Association of REALTORS® reported that the inventory of houses and condos listed for sale was down 20% compared to a year ago. In March 2018, there were roughly 1,000 homes for sale across the county — about 20% fewer than March of 2017.
As per the real estate company named Redfin, the Spokane housing market is very competitive. Homes for sale in Spokane receive 1 offers on average and sell in around 42 days. The average sale price of a home in Spokane was $225K last month, up 18.5% since last year. The average sale price per square foot in Spokane is $124, up 19.2% since last year. Homes typically receive 1 offer. Homes sell for around list price and go pending in around 42 days.
Spokane Housing Market Statistics
There are 2,485 homes for sale, ranging from $1 to $5.6M on Realtor.com. 181 of which were newly listed within the last week. Additionally, there are 263 Spokane rental homes, with a range of $100 to $3.6K per month. In December 2018 the housing market in Spokane, WA was a seller’s market, which means there were roughly more buyers than there were active homes for sale. Seller’s markets are generally more advantageous for sellers rather than buyers.
In December 2018, the median list price of homes in Spokane, WA was $245K, trending up 8.9% year-over-year. The median listing price per square foot was $124. The median sale price was $220K. On average, homes in Spokane, WA sell after 62 days on the market. The trend for median days on market in Spokane, WA is flat since last month, and flat since last year.
There are 263 schools in Spokane, WA. There are 98 elementary schools, 51middle schools, 51 high schools and 63 private & charter schools.
The median list price in Spokane is $72,300 on Movoto.com. The median list price in Spokane was less than 1% change from February to March. Spokane’s home resale inventories is 1, which increased 0 percent since February 2019. The median list price per square foot in Spokane is $92. February 2019 was $92. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in March.
Spokane, WA Single Family Homes
As per the data from the real estate company called Neigborhoodscout.com, the median house price in Spokane is $203,334. Single family detached homes are the single most common housing type in Spokane, accounting for 65.75% of the city’s housing units. Other types of housing that are prevalent in Spokane include large apartment complexes or high rise apartments ( 22.65%), duplexes, homes converted to apartments or other small apartment buildings ( 7.29%), and a few row houses and other attached homes ( 2.83%).
People in Spokane primarily live in small (one, two or no bedroom) single family detached homes. Spokane has a mixture of owner-occupied and renter-occupied housing. Currently, there are 665 single family homes for sale in Spokane, WA on Zillow. Additionally, there are 61 single family homes for rent in Spokane, WA.
Spokane WA Foreclosures And Bank Owned Homes
Foreclosures will be a factor impacting home values in the next several years. As per Zillow’s data. in Spokane 0.6 homes are foreclosed (per 10,000). This is lower than the Spokane-Spokane Valley Metro value of 0.7 and also lower than the national value of 1.2. The percent of delinquent mortgages in Spokane is 1.0%, which is lower than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Spokane homeowners underwater on their mortgage is 3.8%, which is higher than Spokane-Spokane Valley Metro at 3.5%.
On RealtyTrac, there are currently 249 properties in Spokane, WA that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 511. In January, the number of properties that received a foreclosure filing in Spokane, WA was 63% higher than the previous month and 8% lower than the same time last year.
Home sales for December 2018 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Spokane, WA was $0. The median sales price of a foreclosure home in Spokane, WA was $0, or 0% higher than non-distressed home sales.
Spokane Home Prices And Appreciation Rates
Like most cities in Washington State and nationwide, Spokane has experienced home price increases over the last couple of years. They were nearly double the national average. The latest Spokane housing market forecasts (from Zillow) suggest that home values in the area will rise 8.9% over the next year. But most housing analysts and expect house prices to rise more slowly over the coming months than they did in recent years.
Appreciation rates for homes in Spokane have been tracking above average for the last ten years, according to NeighborhoodScout’s data. The cumulative appreciation rate over the ten years has been 15.65%, which ranks in the top 50% nationwide. This equates to an annual average Spokane house appreciation rate of 1.46%.
Appreciation rates are so strong in Spokane that despite a nationwide downturn in the housing market, Spokane real estate has continued to appreciate in value faster than most communities. Looking at just the latest twelve months, Spokane appreciation rates continue to be some of the highest in America, at 8.71%, which is higher than appreciation rates in 86.84% of the cities and towns in the nation. Based on the last twelve months, short-term real estate investors have found good fortune in Spokane. Spokane appreciation rates in the latest quarter were at 4.82%, which equates to an annual appreciation rate of 20.72%.
Importantly, this makes Spokane one of the highest appreciating communities in the nation for the latest quarter, and may signal the city’s near-future real estate investment strength.
Relative to Washington, their data shows that Spokane’s latest annual appreciation rate is higher than 50% of the other cities and towns in Washington.
10 Best Neighborhoods In Spokane For Real Estate Investment
There are 45 neighborhoods in Spokane. Latah Valley has a median listing price of $365.8K, making it the most expensive neighborhood. Emerson Garfield is the most affordable neighborhood in Spokane, with a median listing price of $158.8K. These are the best neighborhoods in Spokane to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Is Spokane Real Estate Good For Investment In 2019 & 2020?
Investing in real estate is touted as a great way to become wealthy. Is Spokane rental property good for investment? If you are looking to buy Spokane investment properties, then you must read this. These things make Spokane real estate market stand out when it comes to choosing a place to invest in 2019 and beyond. We have already discussed the Spokane housing market forecast for answers on why to put resources into this healthy market in 2019.
The home prices in the Spokane real estate market will be on an upswing all through 2019. The home prices have been trending up 8.9% year-over-year. So you should consider investing in Spokane rental homes sooner, to avoid higher home prices down the road. Spokane housing market provides an excellent opportunity for investors and home buyers at the moment.
Here are a few evidence-based reasons why to invest in the Spokane rental properties for cash flow.
1. Geography Limits Potential Supply
Geography up and down the West Coast limits the potential housing supply. We can’t build on water. The desire to preserve views and community limit how high vertically builders are allowed to build when they redevelop properties, while the mountains don’t provide a lot of places where you can build more than a basic bungalow.
This explains why the Spokane real estate market along with Portland, San Francisco and other Pacific coast cities are seeing rapid appreciation. In Spokane’s case, the riverfront is simply desirable but the mountains limit how far the city can expand. So, too, do the many national parks and wilderness areas near the city.
2. California’s Loss is Spokane’s Gain
In 2017, more than 130,000 people fled California for surrounding states. Nor is this trend going to slow down, given that half of adults say they are considering leaving the state. Housing costs and availability were two of the most commonly cited reasons, though security, crime, taxes and jobs were also factors.
And while Californians moving to Texas makes the headlines, in reality, most stay closer to home. In 2016 alone, more than 50,000 Californians moved to Washington. Furthermore, urban dwellers tend to move from city to city, moving from downtown San Francisco to the Spokane real estate market, where they can afford to buy homes.
3. It isn’t Oregon
We can talk about the number of people fleeing the oppressive regulations and high tax rates of California driving up real estate prices across the West Coast and Rocky Mountains. However, not all states are equally attractive. We’re recommending investing in Spokane rental properties instead of hot markets like Portland, Oregon because of
Oregon’s recent legislation. For example, they became the first state to implement state wide rent control.
Given how well economists understand that rent control hurts housing quality and affordability by limiting new construction except for luxury units that are exempt from rent control rules, we’re sure future laws that undermine the profitability of real estate in Oregon will go into effect soon. Invest in the safer, saner Spokane real estate market instead.
4. The Appreciation of Spokane Properties Is Amazing
One reason to buy Spokane rental properties now instead of waiting is because prices are appreciating so fast. For example, home values increased by more than 10% in 2018. For the average $200,000 home, the value went up $20,000. The median home price increased from $220,000 in 2017 to roughly $260,000 in 2018.
5. Spokane Remains Cheap Compared to Other, West Coast Cities
Silicon Valley made the news when the cost of the average home there passed the million dollar mark. The median home price in California passed half a million in 2017, and while home sales in California have slowed, demand has not. Yet Spokane remains relatively affordable.
You could buy two Spokane rental properties for the price of one property in California, and if you hunt for a bargain or choose smaller starter homes, you could buy several rental properties in the Spokane housing market for the price of one property in a hot California market. The fact that living in Spokane is cheaper than the U.S. average is only another reason for people to move here.
6. It Beats Seattle, Too
Seattle is larger than Spokane, but the Spokane real estate market is hotter because the area is cheaper than Seattle. Millennials in particular are flocking to the Spokane housing market because rents are half that of Seattle, while home prices are a third that of Seattle.
Note that if a one bedroom apartment in the Seattle market costs around $1000, you could charge $2000 or more for Spokane rental properties with enough space for a growing family. Seattle may be making its own tax mistakes from the soda tax to its fight to pass a city income tax. This makes buying in more sedate Spokane a wise choice.
7. It Has Low Tax Rates for a West Coast City
California is one of the highest taxed states, taking 11% of one’s income. That’s somewhat more than the 9.3% peak rate Washington State takes. That’s also lower than Oregon’s 10.3% income tax rate. Another point in favor of Washington State is its lower average property tax rate.
The average property tax rate for Washington properties is around 1.1% of the assessed value, close to the national average of 1.2%. The benefit of the Spokane real estate market is the significantly lower property values compared to Seattle that results in a far lower property tax bill.
8. It Is Relatively Landlord Friendly
Washington State doesn’t put a limit on security deposits, though it has strict deadlines by which landlords must refund the money. Landlords can raise the rent if they provide at least thirty days rent. Tenants have three days to pay the rent before eviction can proceed. Washington State allows tenants to be evicted for any cause, though the
Tenants Union wants to prohibit evictions unless there is an accepted reason to be evicted such as the property is being sold. Washington state law says that tenants can withhold rent if important repairs are not completed, and they can repair serious issues and deduct it from their rent. This is an area where Spokane beats Seattle, too. Seattle requires 90 days’ notice to evict someone without cause, while Spokane has no such regulations.
9. The City Is Poised to Take Off
One reason why Spokane long lagged behind Seattle was its higher unemployment rate. Seattle has a roughly 3% unemployment rate, significantly lower than the 5% unemployment rate seen in Spokane. Spokane’s economy, though, is seeing a surge of higher wage jobs. Out of the tens of thousands of new jobs created since 2010, the majority of them pay more than the average county wage – which is in line with the national average. The promise of better pay will lure many people to Spokane to live, fueling demand for the Spokane housing market.
10. WSU Is Fueling Growth
The student market consisting of 18 separate universities does pump a lot of renters into the Spokane housing market, but it isn’t a huge market segment in and of itself. However, the impact of the Washington State University campus in Spokane is massive. The Spokane housing market is certainly impacted by the relocation of the College of Pharmacy to the local campus, the new Health Sciences Campus and tens of millions of dollars of new educational facilities.
The biomedical research facilities should add to the number of high paying research and educational jobs in the area. A side benefit of the large campus and the associated jobs is that it makes the Spokane area’s population much younger than average, guaranteeing demographic momentum as people remain here for work and choose to buy homes for their growing families.
Spokane Real Estate Investment Properties
Maybe you have done a bit of real estate investing in Spokane, WA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you invest wisely, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Spokane, WA. Spokane is a relatively cheap real estate market on the West Coast. It is already seeing increased demand and property valuations, while it remains a safe place to invest in real estate. Skip Seattle and Silicon Valley and invest in the future growth of Spokane.
Buying an investment property is different from buying an owner-occupied home. Investment properties are designed to make money as rentals, which means you must look at it solely as an income producing entity just like any other business.
Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor is your ability to find great real estate investments.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
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Which Are The Hot Markets To Invest In Real Estate?
Apart from the Spokane real estate market, you can also invest in another hot market in Ocala, Florida. Ocala is an affordable real estate market for investors who can still reap a decent return on investment. The area has recovered from the Great Recession, and a number of factors will insulate it from a future downturn. The Ocala housing market is buoyed by several nearly recession proof industries.
It is quite affordable for investors compared to the rest of Florida markets like Tampa where the median home value is $221,500. The median home price in Ocala in 2018 was around $150,000. You can buy several homes in the Ocala FL real estate market for the price you would of one mid-market condo in Miami.
Also, given that this is Florida, it shouldn’t be surprising that retirees are a disproportionately large source of demand for Ocala rental houses. The large number of retirees here creates significant demand for medical professionals and caregivers. The horse-centered community offers a number of good paying jobs to trainers, veterinarians and animal caregivers. There are several manufacturers in the area such as mobile home manufacturers and an EMS vehicle maker.
Another market that we suggest is the housing market in Lakeland, Florida. The Lakeland FL real estate market presents the perfect balance of currently affordable real estate for buyers and future growth. We can expect the population of the area to grow rapidly, and the renting population will grow even faster. The time to buy real estate in Lakeland is now.
While the Lakeland FL real estate market is cheaper than Orlando and Tampa, it is not a good overall value given the lower average wages of its residents. That explains why U.S. News and World Report gave the city an index score of 5.5 out of ten. This is due to the average resident earning around $23,000 a year, several thousand less than the U.S. average. Median household incomes are no better.
The median household income in Lakeland, Florida is around $40,000, more than ten thousand dollars below the national average. This creates strong demand for Lakeland rental homes, especially those that low income residents can afford.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Oregon / rent control
Restricted density / building height
Spokane is relatively cheap
It beats Seattle
Relatively landlord friendly
High wage jobs
Market Data, Trends and Forecast https://www.zillow.com/Spokane-wa/home-values https://www.littlebighomes.com/real-estate-spokane.html https://www.realtytrac.com/statsandtrends/foreclosuretrends/wa/spokane-county/spokane https://www.neighborhoodscout.com/wa/spokane/real-estate https://www.movoto.com/spokane-wa/market-trends https://www.redfin.com/city/17154/WA/Spokane/housing-market https://www.trulia.com/real_estate/Spokane-Washington https://www.realtor.com/realestateandhomes-search/Spokane_WA/overview https://www.sammamishmortgage.com/spokane-the-other-hot-market/
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