Are you considering moving to Spokane, Washington? With its diverse neighborhoods, affordable housing options, and top-rated schools, Spokane offers an attractive place to call home. In this blog post, we will explore the best neighborhoods in Spokane, the current housing market trends, top schools, amenities, and available properties. Let's dive in!
Spokane Housing Market Update
The following Spokane housing market trends are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded. Spokane is home to 28 neighborhoods, each with its own unique charm. If you're looking for the best neighborhoods to live in, consider Lincoln Heights, East Central, and West Central.
These areas have become increasingly popular among homebuyers and renters alike. The vibrant communities, convenient location, and wide range of amenities make these neighborhoods highly desirable.
The Spokane housing market is a seller's market, with more people looking to buy than there are homes available. This has led to rising prices and shorter days on the market. According to realtor.com®, in August 2023, the median listing home price in Spokane was $450,000, up 7.2% year-over-year. Homes sold for approximately the asking price, and the median home sold price was $413,800.
Median Home Prices
The median listing home price in Spokane varies depending on the neighborhood. Rockwood is the most expensive neighborhood, with a median listing home price of $779,000. Chief Garry Park is the most affordable neighborhood, with a median listing home price of $298,000.
Sale-to-List Price Ratio
The sale-to-list price ratio in Spokane is 100%, meaning that homes are selling for approximately the asking price. This is a good sign for sellers, who are likely to get the price they want for their homes.
Days on Market
On average, homes in Spokane sell after 34 days on the market. This is a slight increase from last month and last year, but it is still relatively fast. The short days on market indicate that there is a high demand for homes in Spokane.
Tips for Buyers and Sellers
For Buyers
- Get pre-approved for a mortgage before you start shopping for a home. This will show sellers that you are a serious buyer and will be able to qualify for a loan.
- Be prepared to act quickly when you find a home that you love. The Spokane housing market is competitive, and homes are often selling quickly.
- Work with a qualified real estate agent who can help you find the right home for your needs and budget.
For Sellers
- Price your home competitively. The sale-to-list price ratio in Spokane is 100%, so you should expect to sell your home for approximately the asking price.
- Make your home appealing to buyers. This may include making minor repairs, decluttering, and staging your home.
- Work with a qualified real estate agent who can help you market your home and negotiate with buyers.
Spokane Housing Market Trends – Aug 2023
The Spokane housing market showed some mixed signals in August 2023. Net closed volume was up $7,522,793 from last month, but down $25,259,235 from last year. Listings were down 68 from last month and 155 from last year, while sales were up 78 from last month and down 58 from last year. Pending sales were also up from last month.
Overall, the Spokane housing market is still a seller's market, but there are some signs that it may be cooling off slightly. Buyers are now facing higher interest rates and inflation, which may be putting a damper on demand. However, the Spokane housing market is still fundamentally strong, with a good job market and a growing population.
It is possible that we will see some further cooling of the Spokane housing market in the coming months. However, it is also possible that the market will remain strong, as buyers are still attracted to the Spokane area due to its affordability and quality of life.
Below is the summary of the monthly report for August 2023 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 15.4% from a year ago.
- The median closed price was $420,000, up 1.2% from a year ago.
- Inventory at the end of August 2023 totaled 1080 units, which represents a 1.9-month supply.
- Median Days on the Market were 14, up 7.7%.
- New listings decreased by 12%.
According to the Spokane Association of Realtors, the Spokane housing market remained a seller's market in August 2023, with home sales down 15.4% from a year ago, but median closed prices up 1.2% to $420,000.
Inventory
Inventory at the end of August 2023 totaled 1080 units, which represents a 1.9-month supply. This is down from 1235 units and a 2.3-month supply at the end of August 2022.
Days on Market
Median days on market were 14 in August 2023, up from 13 days in August 2022. This indicates that homes are taking slightly longer to sell than they were a year ago.
New Listings
New listings decreased by 12% in August 2023 compared to August 2022. This is likely due to a combination of factors, including rising interest rates and inflation.
Conclusion
The Spokane housing market is still a seller's market, but it is showing some signs of cooling. Home sales are down and inventory is up, which means that buyers have more options to choose from. However, median home prices are still rising, so buyers should be prepared to act quickly if they find a home that they love.
What to Expect in the Coming Months
The Spokane housing market is expected to remain a seller's market in the coming months, but it is possible that we will see some further cooling. Rising interest rates and inflation are likely to continue to put a damper on demand, and inventory is expected to increase as more homeowners decide to sell. However, the Spokane housing market is still fundamentally strong, with a good job market and a growing population.
Spokane Housing Market Forecast 2023-2024
What are the Spokane real estate market predictions? Let us look at the price trends recorded by Zillow (a real estate database company) over the past year. The Spokane housing market has seen notable trends recently, and these trends play a crucial role in shaping the housing market forecast for the coming months.
According to data from Zillow, the average home value in Spokane currently stands at $386,490. Over the past year, there has been a slight decline of 2.4% in average home values, reflecting an ongoing adjustment phase in the market. These figures provide valuable insights into the evolving dynamics of the Spokane real estate landscape.
As of July 31, 2023, the median sale-to-list ratio is reported at 1.000. This ratio indicates that, on average, homes are being sold at their listed prices, implying a balanced equilibrium between sellers and buyers in the market.
Further analysis of data from June 30, 2023, shows that around 42.1% of sales closed above the list price, while 30.1% of sales were completed below the list price. These statistics underscore the varied pricing outcomes within the Spokane housing market, indicating a diverse range of competitive dynamics and negotiation strategies.
One particularly noteworthy feature of the present market conditions is the swift pace at which homes are going pending. As of July 31, 2023, the median time for a home to go pending is just 7 days. This rapid pace suggests a high level of demand, potentially fueled by factors such as limited housing inventory or attractive mortgage rates.
Now, turning to the Spokane Metropolitan Statistical Area (MSA) housing market forecast, we observe a projection for future performance. Based on the provided forecast data, we can anticipate a modest increase in the housing market's performance within the Spokane MSA.
From the current base date of July 31, 2023, the forecast predicts a 0.5% increase in market performance by August 31, 2023, followed by a more significant 1% increase by October 31, 2023. Looking ahead to July 31, 2024, the forecast indicates a substantial 6.9% increase in market performance compared to the current base date.
Hence, the Spokane housing market forecast for the next several months points toward a market characterized by stability, competition, and potential growth. The slight decline in average home values over the past year may offer opportunities for prospective buyers seeking more affordable options. The balanced sale-to-list ratio suggests a fair pricing environment that benefits 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 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
