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Spokane Housing Market Trends for 2023
The housing market in Spokane, Washington, has seen steady growth in the last few years, but what does the market look like in January 2023? In this blog post, we will examine the latest housing market trends in Spokane, including the median listing and sold prices, sale-to-list price ratio, median days on the market, and homes for sale in the area.
Median Listing and Sold Prices
According to the recent report by Realtor.com, the median listing home price in Spokane, WA, was $400K in January 2023, which is flat year-over-year. The median listing home price per square foot was $201, and the median home sold price was $340K. As the median home sold price is lower than the median listing home price, it suggests that buyers have some negotiating power in the market.
Sale-to-List Price Ratio
The sale-to-list price ratio in Spokane, WA, is 100%, which means that homes are sold at approximately the asking price on average in January 2023. This ratio indicates a balanced market where both buyers and sellers have roughly equal negotiating power. On average, homes in Spokane, WA, sell after 69 days on the market, according to a recent report. The trend for median days on the market has gone up since last month and slightly up since last year. The following chart shows the trend for median days on the market in Spokane:
The housing market in Spokane, WA, is currently balanced, with a sale-to-list price ratio of 100%, and homes are taking an average of 69 days to sell. Although the median listing home price has remained flat year-over-year, there are many options available for buyers, with over 1,000 homes for sale in the area. If you're interested in buying or selling a home in Spokane, be sure to keep these trends in mind and work with a knowledgeable real estate agent to help you navigate the market.
Spokane Housing Market Trends Year to Date
The Spokane Association of Realtors released its annual housing report, which showed a 20.1% decrease in home sales from January through December 2022 compared to the same period in 2021. The median closed price increased from $370,000 to $415,000 in 2022. Inventory also increased from 273 units in December 2021 to 626 units in December 2022, representing a 1.7-month supply.
The report also showed a decrease in Net Closed Volume for December 2022 compared to the previous month and year, with a total of $237,822,490. Pending sales for the month of December 2022 were $213,790,279, with 494 pending sales processed.
Below is the summary of the annual housing report, released by the Spokane Association of Realtors for single-family residential/site-built properties on less than one acre and condominiums.
- Spokane home sales were down 20.1% from a year ago.
- Closed sales from January through December 2022 totaled 6,637 compared to January through December 2021 when the total was 8,311.
- The median closed price from January through December 2022 was $415,000 compared to January through December 2021 when the median price was $370,000.
- Inventory at the end of December 2022 totaled 626 units, which represents a 1.7-month supply.
- At the end of December 2021, there were 273 units, a 0.4-month supply
- Inventory as of this report totals 233 properties which represents a 13-day supply.
- The number of new listings from January through December 2022 was 8,841, compared to January through December 2021 when 8,974 new listings were reported.
According to the Spokane Association of Realtors, the Net Closed Volume for the month of December 2022 was $237,822,490. There were 547 listings processed, and 552 closed sales. Compared to last month, Net Closed Volume is down $13,406,973. Listings are down 318, sales are down 41. Compared to last year, Net Closed Volume is down $198,677,597. Listings are down 140, sales are down 479. The mandatory sales volume was $214,552,272. Non-Mandatory sales volume was $23,270,218. Pending sales (figured on the list price) were $213,790,279. There were 494 pending sales processed.
Spokane Real Estate Market Forecast 2023
What are the Spokane real estate market predictions for 2023? Spokane's housing market is shaping up to continue the trend of the last few years as one of the hottest markets in the nation. Let us look at the price trends recorded by Zillow (a real estate database company) over the past year. The typical value of homes in Spokane is currently $370,827, an increase of +3.2% from last year.
It indicates that 50 percent of all housing stock in the area is worth more than $370,827 and 50 percent is worth less (adjusting for seasonal fluctuations). ZHVI represents the whole housing stock, not just the homes that list or sell in a month. The typical home value of homes in Spokane Valley is $385,855, up 4.4% over the past year.
The Zillow report also includes a 1-year market forecast for Spokane, which predicts that home values will continue to increase. The forecast estimates that home values will rise by 3.2% over the next twelve months ending Jan 2024, which is slightly lower than the 4.4% increase seen over the past year. This indicates that the housing market in Spokane may be stabilizing, which is good news for both buyers and sellers.
Spokane Real Estate Investment: Should You Invest in Spokane?
Spokane, located in the eastern part of Washington State, is a city that has been gaining attention from real estate investors over the past few years. With a population of around 200,000, Spokane is the second-largest city in the state and has a metropolitan area of nearly 600,000 people.
The Spokane real estate market offers a mix of owner-occupied and renter-occupied units, with single-family homes accounting for the majority of housing units. According to data from Neighborhoodscout, one and two-bedroom detached homes are the most common housing units in Spokane, with other types of housing such as duplexes, rowhouses, and converted apartments also prevalent.
The geography of Spokane limits the housing supply, which contributes to the city's strong market performance. The desire to preserve views and community limits the height that builders can construct, while the nearby mountains and national parks limit how far the city can expand. Additionally, the influx of Californians fleeing the state's high housing costs and regulations is driving up real estate prices across the West Coast and the Rocky Mountains, including Spokane.
The Spokane real estate market offers a great investment opportunity for real estate investors. With its strong market performance, limited housing supply, and affordability compared to other West Coast cities, Spokane is a city that should be on the radar of any real estate investor looking to invest in a long-term, lucrative market.
Here are the top reasons why you should invest in the Spokane real estate market:
Affordable housing market
Compared to other cities in the Pacific Northwest like Seattle and Portland, Spokane's housing market is relatively affordable. This means that investors can buy properties at a lower cost and potentially see a higher return on investment. Additionally, Spokane's low cost of living and affordable housing market make it an attractive place for young professionals and families, which drives demand for rental properties.
Strong rental market
Speaking of rental properties, Spokane has a strong rental market. The city has a low vacancy rate, which means that properties tend to get rented quickly. Additionally, rental rates have been increasing steadily over the past few years, making it a great time to invest in rental properties in Spokane.
Economic growth
Spokane's economy is diverse and growing. The city is home to a number of major employers, including healthcare providers, universities, and manufacturing companies. Additionally, the city's downtown area has undergone a significant revitalization in recent years, which has attracted new businesses and residents to the area.
Outdoor recreation opportunities
Spokane is located in eastern Washington, which means it's surrounded by beautiful outdoor spaces. From skiing and snowboarding in the winter to hiking and biking in the summer, there's no shortage of outdoor activities for residents and visitors alike. This makes Spokane an attractive place to live, which drives demand for real estate.
Potential for appreciation
Finally, Spokane's real estate market has the potential for appreciation. While prices have been steadily increasing over the past few years, they're still relatively affordable compared to other cities in the Pacific Northwest. As the city continues to grow and attract new residents and businesses, property values could increase even more in the coming years.
Rental Regulations and Eviction Process in Spokane
Another important factor to consider when investing in the Spokane real estate market is the rental regulations in the area. Unlike some other states, rent control is illegal in Washington State, which means landlords have more flexibility in setting rental rates. They can raise the rent as much as they want, as long as they comply with the appropriate notice period and have not issued the notice to discriminate or retaliate against the tenant. Landlords must provide the tenant with at least 60 days' notice before raising the rent.
In addition to this, landlords also have the right to evict tenants who fail to pay rent or violate the terms of the lease agreement. Before starting the eviction process, landlords must provide tenants with a form called a 14-Day Notice to Pay or Vacate. If the tenant fails to pay rent or comply with the terms of the lease agreement, the landlord can file an eviction lawsuit. Depending on the basis for eviction, the tenant has between 3 and 5 days to vacate the property.
There are some lease violations that are deemed “non-curable.” These non-curable violations require a 3-Day Notice to Quit, and tenants cannot fix the violation and are required to move out by the end of the 3 days. Additionally, tenants can be evicted if they stay in the property even a day after their written lease ends (and have not arranged for a renewal). The required notice time given to tenants is 20 days regardless of their tenancy type.
Overall, the rental regulations in Spokane are landlord-friendly, giving property owners more control over their investments. However, it's important for landlords to follow the proper legal procedures when raising rent or evicting tenants to avoid any legal issues.
In conclusion, Spokane is an attractive city for real estate investors for several reasons. With an affordable housing market, strong rental market, diverse and growing economy, outdoor recreation opportunities, and potential for appreciation, it's definitely worth considering as a place to invest in real estate.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Spokane.
Consult with one of the investment counselors who can help build you a custom portfolio of Spokane turnkey investment properties in some of the best neighborhoods. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Spokane turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
Apart from the Spokane real estate market, you can also invest in another hot market like Seattle. Seattle’s tech landscape and real estate market are rapidly evolving. Google just upped the size of its new Seattle campus. Facebook has been on a hiring spree in the Seattle area, particularly for its virtual reality arm Oculus, which is growing fast in Microsoft’s backyard of Redmond. GeekWire reported on new HQ leases for top Seattle startups Rover and Outreach. Other companies continue to grow and that will pick up any slack. Tech has blown up Seattle. For the past 5 years, we have seen 50% price growth in this market which has priced out many middle-class buyers.
Another city in Washington where you can invest is called Tacoma. Tacoma sits at the southern end of Puget Sound and straddles Commencement Bay. Being a large port town, it is already flanked by smaller cities and backed by mountains. This prevents the city from simply expanding outward, forcing developers to pay for the more expensive redevelopment of existing properties. This will keep prices in the Tacoma real estate market high as long as the job market remains strong. It certainly limits the ability to quickly bring new supply to a tight housing market that has only 1.5 months of inventory on hand.
The third real estate market which is good for investment is Walla Walla. The Walla Walla real estate market is much more stable than coastal real estate. Property prices have appreciated about six percent in the past ten years. This is slow, steady growth. It is far better than the depreciation you see in some rural areas. It doesn’t provide the excitement of Seattle and San Francisco property prices rising by double digits, but you also don’t see housing prices crash because a tech giant decides they want to leave the area, citing insane real estate prices.
Let us know which real estate markets you consider best for real estate investing in 2020!
Remember, caveat emptor still applies when buying a property anywhere. Some of 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, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
References:
- https://www.spokanerealtor.com/market-snapshot
- https://www.spokanerealtor.com/mls-weekly-news-information
- https://www.zillow.com/Spokane-wa/home-values
- https://www.neighborhoodscout.com/wa/spokane/real-estate
- https://www.realtor.com/realestateandhomes-search/Spokane_WA/overview
