Are you thinking about buying or selling a home in Spokane? You're probably wondering about the current Spokane housing market trends. As of early 2025, the market is showing signs of increased activity, with a slight rise in median prices and a significant jump in inventory. Let's dive into the details so you can make informed decisions.
Current Spokane Housing Market Trends: What You Need to Know
Is Spokane a Good Place to Buy a House?
I can confidently say it's a great place to live! Spokane offers a blend of city amenities and outdoor recreation. The affordability (compared to other West Coast cities) and the quality of life have always been a strong draw for people. That being said, the Spokane housing market is definitely something you need to consider before making a decision. Let’s break down what's happening right now.
Home Sales
According to the Spokane Association of REALTORS®, home sales in Spokane are up! This means more people are actually buying homes. Specifically, for January 2025:
- Closed sales totaled 330, compared to 287 in January 2024.
- That's a 15% increase year-over-year.
This indicates a potentially stronger demand for housing in the area. As someone who watches the market closely, I see this as a positive sign. It suggests that buyers are gaining confidence, despite some of the challenges we'll discuss later.
Home Prices
Home prices are always a hot topic, and Spokane is no exception. Here's the latest:
- The median closed price for January 2025 was $389,950.
- In January 2024, it was $385,000.
- That's a 1.3% increase.
While not a massive jump, it's still an increase. It indicates that home values are holding steady, or even slightly appreciating, in the Spokane area. Here is the table for easy understanding:
| Metric | January 2025 | January 2024 | Change |
|---|---|---|---|
| Closed Sales | 330 | 287 | Up 15.0% |
| Median Price | $389,950 | $385,000 | Up 1.3% |
| Inventory | 949 units | 712 units | Up 33.3% |
| New Listings | 773 | 631 | Up 22.5% |
Are Home Prices Dropping?
This is the question on everyone’s mind! The short answer is no, home prices in Spokane are not currently dropping. While the increase isn't dramatic, the median price did rise slightly from January 2024 to January 2025.
However, it's important to remember that the housing market can change quickly. Factors like interest rates, inventory levels, and overall economic conditions can all influence prices. So, while prices aren't dropping right now, it's something to keep an eye on.
Comparison with Current National Median Price
It's always good to compare the Spokane market to what's happening nationally. As of December 2024, the national median price was $407,500, with a year-over-year change of +6%.
This means that Spokane's median home price ($389,950 as of January 2025) is still lower than the national average. This relative affordability is one of the things that makes Spokane an attractive place to live. However, the national market experienced a larger percentage increase than Spokane, indicating varying levels of demand across the country.
Housing Supply
Housing supply is a crucial factor in determining whether it's a buyer's or seller's market. Here's what the data shows for Spokane:
- Inventory at the end of January 2025 totaled 949 units.
- This represents a 2.9-month supply.
- At the end of January 2024, there were 712 units, a 2.5-month supply.
- That's a 33.3% increase in inventory.
This significant increase in inventory is a notable development. A higher inventory generally gives buyers more choices and can potentially lead to more negotiating power. I've noticed more “For Sale” signs popping up lately, which supports this data.
Is It a Buyer's or Seller's Housing Market?
Based on the data, Spokane is moving towards a more balanced market. A “balanced market” means that neither buyers nor sellers have a significant advantage.
- A seller's market typically has a low inventory (less than 4 months supply), giving sellers more leverage to set higher prices.
- A buyer's market has a high inventory (more than 6 months supply), allowing buyers to negotiate prices down.
With a 2.9-month supply, Spokane is still technically leaning towards a seller's market, but the increased inventory is shifting the balance. As a real estate enthusiast, I believe this shift provides a bit more breathing room for buyers compared to the frenzied market we saw a few years ago.
Market Trends
Let’s look at more factors that determine the Spokane Housing Market. Beyond prices and inventory, it's important to look at broader market trends. Here are some key things to consider:
- New Listings: The number of new listings in January 2025 was 773, compared to 631 in January 2024. That's a 22.5% increase, adding even more to the available inventory.
- Seasonal Fluctuations: The housing market typically slows down during the winter months and picks up in the spring and summer. So, we might see even more activity in the coming months.
- Economic Factors: Overall economic conditions, such as job growth and consumer confidence, can impact the housing market. Spokane's economy has been relatively stable, which is a good sign for the housing market.
Impact of High Mortgage Rates
The impact of high mortgage rates has been significant. Currently hovering around 7% (as of February 2025), mortgage rates have made buying a home less affordable for many people.
- Reduced Affordability: Higher rates mean higher monthly payments, which can price some buyers out of the market.
- Slower Sales: High rates can also slow down the pace of sales, as buyers take longer to make decisions or decide to wait for rates to come down.
- Potential Price Pressure: If high rates persist, they could put downward pressure on prices, as fewer buyers are able to afford homes.
Despite these challenges, the Spokane housing market has shown resilience. The increase in sales and the slight rise in prices suggest that demand is still strong, even with higher rates. As someone deeply rooted in the Spokane community, I believe that the area's unique appeal continues to attract buyers.
The Bottom Line
The current Spokane housing market is showing signs of increased activity and a slight rise in median prices. While higher mortgage rates present a challenge, the market has remained relatively stable. The increased inventory is a welcome sign for buyers, providing more choices and potentially more negotiating power.
If you're thinking about buying or selling, now is the time to do your research, work with a qualified real estate agent, and make informed decisions based on your individual circumstances.
Spokane Housing Market Forecast: What's Ahead for Home Prices?
Experts predict a modest increase in home values. Zillow’s latest forecast, as of January 2025, projects a 0.9% rise in Spokane home prices over the next year (January 2025 to January 2026). But let's dive deeper, because that single number doesn't tell the whole story. As a person deeply invested in local real estate trends, I'll walk you through what this forecast really means for buyers, sellers, and investors in Spokane.
Understanding the Spokane Housing Market Forecast
Real estate predictions are never set in stone. They're based on current data and trends, which can shift quickly. So, while we're looking at what the experts are saying now, it's important to stay informed as the year progresses.
Let's break down that Zillow forecast in more detail. It's not just about the end of the year; it's about the journey along the way. We need to look into monthly projections to better understand the direction of the market.
Here's what Zillow projects for Spokane, WA:
| Region | State | February 2025 Forecast | April 2025 Forecast | One-Year Forecast (Jan 2025 – Jan 2026) |
|---|---|---|---|---|
| Spokane, WA | WA | 0.1% | 0.1% | 0.9% |
What does this mean? Well, the projected increase is very gradual increase. In Feb and April there is 0.1% increase. Gradual growth indicates a stable, rather than booming, market.
How Does Spokane Compare to Other Washington Cities?
To get a better sense of Spokane's housing market, it's helpful to see how it stacks up against other cities in Washington state. Are we keeping pace, lagging behind, or leading the way?
Here's a comparison of projected home value changes in other Washington metropolitan areas, according to Zillow:
| Region | State | February 2025 Forecast | April 2025 Forecast | One-Year Forecast (Jan 2025 – Jan 2026) |
|---|---|---|---|---|
| Seattle, WA | WA | 0.4% | 1.1% | 1.5% |
| Kennewick, WA | WA | 0.3% | 0.8% | 0.6% |
| Olympia, WA | WA | 0.2% | 0.7% | 1.7% |
| Bremerton, WA | WA | 0.1% | -0.2% | -0.6% |
| Yakima, WA | WA | 0.3% | 0.5% | 0.5% |
| Bellingham, WA | WA | 0.3% | 0.5% | 1.1% |
| Mount Vernon, WA | WA | 0.2% | 0.6% | 1.3% |
Key Observations:
- Seattle's Strong Growth: Seattle is expected to experience more robust growth compared to Spokane. This isn't surprising, given Seattle's thriving tech industry and higher overall demand.
- Mixed Bag Across the State: Other cities show a range of forecasts, with some, like Olympia and Mount Vernon, projected to have higher growth than Spokane, while others, like Bremerton, are expected to decline.
- Spokane's Stability: Spokane's projected growth is relatively moderate, suggesting a more stable and balanced market compared to some of the more volatile areas.
Will Home Prices Drop in Spokane? What About a Housing Market Crash?
This is the question on everyone's mind! No one has a crystal ball, but here's my take based on current trends:
- Price Drop Unlikely: Based on the available data and expert forecasts, a significant drop in home prices in Spokane seems unlikely in the immediate future. The projected growth, even if modest, suggests continued demand.
- Crash? Highly Improbable: A housing market crash, similar to what we saw in 2008, is highly improbable. Lending practices are much more stringent now, and the underlying economic conditions are different.
However, it's crucial to remember that local market conditions can vary. Factors like interest rates, inventory levels, and job growth in Spokane will all play a role. So, while a crash isn't expected, a slowdown or a period of price stagnation is always possible.
My Personal Take on the Spokane Market
Having followed the Spokane real estate scene closely for years, here's my personal opinion. Spokane has a lot going for it. It offers a great quality of life, affordable housing compared to larger cities, and a growing job market. These factors are likely to continue driving demand for housing in the area.
However, interest rates are a wild card. If they continue to rise, it could dampen buyer enthusiasm and slow down price appreciation. Inventory levels are also something to watch. If more homes come on the market, it could create more competition and put downward pressure on prices.
A Glimpse into 2026: Projecting Beyond the Forecast
While we have concrete forecasts for the next year, what about 2026? Predicting that far out is tricky, but we can make some educated guesses:
- Continued Growth: Assuming the local economy remains healthy, I expect Spokane to continue experiencing moderate growth in home prices. The city's attractive lifestyle and relatively affordable housing should keep demand steady.
- Slight Slowdown Possible: If interest rates rise significantly or the economy weakens, we could see a slight slowdown in the rate of price appreciation.
- Factors to Watch: Keep an eye on new construction projects, major employers moving to the area, and any changes in local government policies that could impact housing.
Should You Invest in the Spokane Real Estate Market?
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.
To sum up, 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.
